b'BUSINESSMATTERSA relentless focus on your break-even sales level will keepferry or sightseeing operators should keep historical your expenses low. If you have a 67 percent contributionaverage check levels.margin, you will need $1.50 of new revenue to cover $1During the Great Recession of 2008, one large operator of new expenses. If you have a 50 percent contributionlost 20 percent of their passengers but kept their average margin, you will need $2 of new revenue to cover it. Youcheck. They were able to pare back expenses so when will learn to think about generating multiples of revenuesales increased their cashfl ow rapidly recovered. Another to cover new costs. Plus, once revenue gets over thatlarge operator kept their passenger count by lowering the break-even revenue level, you will ensure good marginsaverage check 20%. Expenses could not be cut as much instead of poor ones.as the fi rst operator and it took a decade for their average 2. Rethink: What will your 2021 revenue be? check to rebound and overcome lagging margins. What are realistic passenger counts for 2021? Your productNow imagine the dinner boat average check declining by mix will likely change as pre-sold groups will take longer10-20 percent compared to previous years. In this example, to recover than local riders.with 20 percent less passengers than normal, overall sales What will your average check be? Many of us havein 2021 could be two-thirds of 2019s. Many overheads boosted profit margins during the last 10+ years ofcannot be reduced by a third, further evidence that we will economic expansion by aggressively raising prices duringneed a different operating model for 2021.strong demand. Now we have excess supply while our customers are coming back. Lucrative market segments3. Reimagine: 2021 as a start-up yearlike corporate will be soft and we will end up chasingBuild your 2021 revenue budget as a professional skeptic lower margin business like social/civic groups. Thiswould, calculating your break-even sales volume and market mix will also lower the average check. Fortunatelyreimagining your operation.ZF Propulsion System Technology.EXCEED GLOBAL EMISSIONS STANDARDS For the dependable, on-time service Operate a lightweight vessel equippedyou provide.with hybrid or electric engines. Reduce ZFs line of propulsion technologyfrom transmissions and your operating and maintenance costs.thrusters, to propellers and controlsprovides the optimal Minimize your environmental impact.solution for passenger ferry applications worldwide. We offer the control, reliability and performance youre looking for, BUILD A CARBON FIBER FERRY resulting in a turnkey propulsion system designed to meet your needs. ZF is ready to help keep you on-schedule.zfmarinepropulsion.comLearn about Americas only carbon T- and K-Class ferry builder:www.ARCADIA-ALLIANCE.com32OCTOBER 2020FOGHORN'