Current day rate for Captains?

Islandtime · 06-02-2008, 06:39 AM

I'm trying to figure out what is considered to be a reasonable day rate for a Captain. I usually run vessels up tp 80' and get $325 per day, regardles of vessel size. I've had some people mention that they feel that is high, and others who feel it is within reason. I have over 25 years of experience, possess a 100gt license and am a USCG Veteran. Day rates seem to start at $225 and go up from there. Also, what would be considered an appropriate day rate for a mate? Thanks in advance for the advice.

NYCAP123 · 06-02-2008, 07:46 AM

In NY we generally charge upwards of $400 per day plus meals and expenses. With what's happened to the economy that's now going up considerably. Some captains are charging a milage charge to the boats; others are just adjusting their rates.

Islandtime · 06-02-2008, 07:54 AM

That was a factor I considered when coming up with my rate- I don't charge any travel time, and the cost of mileage can no longer be ignored.

NYCAP123 · 06-02-2008, 08:34 AM

I've seen low-ballers in our industry. They're an inconvenience and seldom last long. The people we deal with are generally professionals and they don't mind paying a professional rate for the person keeping them and their million dollar toy safe. I don't negotiate, I don't sleep in 5x5 "crew quarters" and I keep very busy.

Islandtime · 06-02-2008, 12:07 PM

That's the way I look at it. I am always hearing of guys who will run all day for anywhere between $150 and $250, and I find it comical. I am considering going from $325 to $295, but would not run for any less.

NYCAP123 · 06-02-2008, 12:53 PM

Rhetorical questions: How much do you need to live (not just exist), and don't forget health insurance, etc.? How many days a year can you expect to run? Divide one into the other and you've got your rate. If you can't get that you're in the wrong business. It's that simple.
In every business you see these jokers who undercut price then give substandard service. Next you see them and everyone who tries to compete with them on price going out of business. Rising to the top you find the cream.
A prime example (and believe me I hate to say) is lawyers. The ones who charge $100 an hour are selling real estate and chasing ambulances. The ones who get $1,000 an hour don't even advertise.

Islandtime · 06-02-2008, 01:54 PM

Quote:

Originally Posted by NYCAP123

A prime example (and believe me I hate to say) is lawyers. The ones who charge $100 an hour are selling real estate and chasing ambulances. The ones who get $1,000 an hour don't even advertise.

Having worked for a major law firm, I agree with this completely. The ones who balk at a premium rate are probably the same ones who will expect you to come out of pocket for fuel, meals, dockage, tips, etc.

Capt J · 06-02-2008, 04:32 PM

You guys are in the right ball park price-wise..... I am located in South Florida and my rates vary from $300-350 per day + all expenses. Typically 50-80'. I sometimes go up to $400 a day on something larger

NYCAP123 · 06-02-2008, 05:17 PM

You caps in So. Fla are a little low, but that's because there are a ton of caps there. The young bucks think they'll get work if they're cheep then the good ones panic and drop their price. We've done some organizing so we tend not to compete on price. If someone suddenly comes in low-balling it's real obvious that you don't want him running your boat. We tend to compete with reputation and connections. We also refer to each other when we can't do a job and pay back a referral fee to the other captain. Plus, I can do 3 to 4 lessons in a day at $200 per so why compromise.

Islandtime · 06-02-2008, 09:07 PM

Quote:

Originally Posted by NYCAP123

You caps in So. Fla are a little low, but that's because there are a ton of caps there.

That is an understatement. Sea School has a full class every week, and there are a lot of "Paper Captains" running around with no real experience.

NYCAP123 · 06-02-2008, 09:42 PM

Just be patient. Most of those wannabes will be out of the business before their first issue is up. If someone hires on the basis of who is cheapest he'll get what he deserves. In the mean time keep building your rep and your connections and insist on getting the pay you deserve even if it means holding another job until you can do it full time. When I was down there I worked 4 boats and had my own tour boat. As a captain if you're earning less than 50K a year you're in the wrong business and you should be making considerably more than that if you're any good.

Capt J · 06-03-2008, 09:52 AM

I don't know if you can say we're a little low here in South Florida. I assume the cost of living is a bit less then NY. I have been at $300 for over 3 years and have kept my old customers at that rate. New customers $350 or so. I remember when I charged $200 a day many years ago. Each time I raise prices nobody seems to ever say anything, and I usually raise them $50 at a time....... but I guess I have been too nice lately.......

I am constantly completely booked (I also manage several yachts). Many times overbooked. But most of my work and clients come from 2 large brokerage houses and one large manufacturer. I've been fortunate that I have never had to solicite business ever. I do right around 12k nautical miles in deliveries per year, plus a lot of local stuff, and manage the yachts that I manage. Right now I am running a 75'MY from Ft. Laud to Chicago.

I also have about 8 different Captains and send them business when I cannot take it and vice-versa. However, it's a gentlemans agreement and they reciprocate so we don't bother with making anything off of a referral.

I've been doing this professionally for 9 years now and have hit 6 figures the last 3 years and been just under that the previous 3 so I cannot complain and have zero interest going full time on one boat and being stuck somewhere for months. I pick and choose the deliveries I do right now.

NYCAP123 · 06-03-2008, 11:45 AM

You and I sound like we're at about the same point in our careers and viewpoints, except that I'm starting to cut back on the deliveries a bit.
I used to do the "gentleman's agreement", but I found I was giving a lot more referrals than I was receiving. Our method also helps out if one of our captains is having a bad year or maybe can't run for some reason. He can continue to earn a little something. Also, since we continue to pay for all work received from a referred client for 2 years nobody's afraid of losing a client by referring them, so clients don't get left on the dock.
Although I'd been charging $400 since before last summer I had one special client that I'd held at $300 since 3 summers ago. At the end of last summer I said I'd have to raise him, but asked him to name the figure. He came up with $400 as a fair #. With what's happened to the ecconomy he has since told me another raise would be completely fair. I'll hold him there, but my new clients are paying $450 to $500.

Islandtime · 06-05-2008, 07:08 AM

While we're on the topic of payment, I was wondering if anyone has encountered issues with getting paid. I have one client who likes to cut a check through his business, and I have to wait 2 weeks and call to follow up. I have another who played dumb and said "I forgot my checkbook"; can I mail you a check? This is getting old- I'm thinking of getting a credit merchant account so I can accept payment on the spot. Thoughts?

NYCAP123 · 06-05-2008, 07:35 AM

Did I mention that before I got my ticket I spent 17 years in the collection business? No, getting paid has never been a problem. Slow payers don't get my services. I had one dealership that just went quiet on a $300 debt. By the time I was done the debt was almost $700 and I was about to take their business license. And, if you can believe this, they've since asked me to do work for them again. Fat chance.
As for credit cards, 1) There's not enough call. 2) Do you really want to give up 4 or 5%. 3) Estimated expenses should be gotten up front or the owners card should be carried.