Originally posted by Brian
It sounds a lot doesn't it?
But start to work out the REAL return.
He does a max of 6 runs a day-during the season only (4-5 months up there).
Not all runs are full. Weather and tides do not always permit leaving harbour.
There are 2 crew on every run who need to be paid plus one ticket office lady/kitter outer. One in office doing paperwork/running website/answering phone.
Fuel cost is minimal. Harbour dues and license to operate? Substantial though. Amortisation on boat (cost £110k). Interest on purchase price. Maintenance on boat.
Finally, now what is the return on capital employed and would you have been better off leaving the money in the Building Society?
A closer call than you might think perhaps.
I knew that
The point I was touching on was that a 'bargin' £15 per hour, where for the owner thats £180.
But still 6 runís a day, so £1080 a day. 5 days a week, so £5400 a week. So £129,000 for 6 months, in an ideal world.
So for a yearly turnover for doing 'Rib tours' that is not too shabby, and if the boat loan is 3 years, then it seems feasible to be able to cover the costs and provide a living.
Ok so the net profit might not prove to be the best way to have spent your money. But then there is the moral dilemma of the owner / proprietor. If I had the chance to take 3 years out to drive about in a £110k RIB giving others an experience, whilst paying for the boat I would jump at the chance!
// hope your taking not all your budding entrepreneurís
But the in hindsight I am in now way a business analyst, or in a position to say yes / or no to such a venture because I don't know all the details