Mooring auctions reserve prices

[Dave_P]

Do you mean Paddington basin?

 

I suspect you are talking about Engineers Wharf - if so not very close to Paddington! (If it were I think they might let far easier!).

 

I think my argument still applies, despite the huge numbers.

 

The "book" price at Engineers wharf seems to be £5,765, and presumably, despite the issues with trying to let all spaces there, there are existing moorers already paying £5,765 per year for a berth.

 

Even the quoted "reserve" of £5,189, would represent a £576 per saving to anyone paying the full price, or at least £1,728 on a three year fixed price contract. I don't know what notice an existing moorer there would need to give to terminate a full price mooring, but if it is one month, then that is £432 they would have to forfeit if they bid and got one more cheaply. Even so, they might be able to save about £1,300 over three years by successfully bidding at reserve.

 

So what happens if CRT set reserve at (say) £3,000 to try and ensure a berth lets? I would suggest each time this happens, they have the potential to see it taken by an existing moorer. Over time the recognised "list" price of a berth there might then be considered to be £3,000, not nearly £6,000.

 

CRT will make more money by having (say) only 75% occupancy at full price, rather than 100% occupancy at say £3,000. (Note I have no idea what the actual occupancy is at Engineers Wharf - I'm just giving an example - the reality might be nothing like!

 

I remain well convinced this is not about what is costs to provide and service a mooring at Enginners Wharf - it is about them not being able to keep existing moorers paying a very high price, if low reserves set a much lower figure at that site.

 

Nobody seems to accept what I'm saying, and most seem intent on other explanations. However, I'm pretty certain I'm right about why CRT's policy is as it is!

The amount of assumptions you make here make this pretty much meaningless. The biggest one is this: if you are able to let 75% of mooring currently at over £5000 per mooring, why do you think they would go for the reserve price if it were set at £3000? It might happen occasionally, but that's all. Any regular ebayer knows the best way to generate bidding interest on an auction is to start with a low reserve.

 

So what if existing moorers chanced their arm on a local mooring at reserve price? Seems pretty likely to me that just bidding between those local moorers would raise the price to just below what they're currently paying. That's basic economics.

 

I honestly don't see this as a thought out strategy by CaRT. Just opportunism practised by imbeciles who can't see that they're shooting themselves in the foot.

Just looked at the completed auctions first page. Ten auctions. Only four received bids. Three went for reserve. One just about made guide price.

 

The next two auctions the make guide price are at the bottom of page 3 and half way down page 5. If CaRT were a commercial auction house, they would have gone bust!

[Tuscan]

The original concept for the auction process i believe was to counter claims of corruption by queue jumping and inefficiencies because boaters were on so many waiting lists. It would be interesting to compare total revenue and fill rates from the last year pre auction and now. I suspect even with inflation the current system yields more cash which I suspect is now the main driver.

[Mick and Maggie]

I suspect even with inflation the current system yields more cash which I suspect is now the main driver.

Economics is going to be the main driver, most businesses today are run by the bean counters. There is little in the way of a public service element in the world of the bean counter. nothing is ever acceptable for reduction. So much for Thatchers mantra of prices being set by market forces.

[sueb]

I believe the only moorings in Reading have failed to let at all. They used to be full , possibly by boaters not paying, I don't know. It is only price that prevents them letting.

[kris88]

Am I being to simplistic,but surely more reasonably priced moorings means less constant moorers.

Regards kris

[Doorman]

 

 

Anyone who buys a "buy it now" mooring is in my view either dumb, or exceedingly desperate!

 

 

 

Quote; "Currently in the South East demand has rocketed at some sites, with people prepared to pay over twice 'guide' at some, and even less popular sites regularly making at least 'guide' "

 

A perfect example of the two human frailties that you mention, 'dumb' and 'exceedingly desperate'.

Edited June 22, 2013 by Doorman