The Costs
Lowell Sheppard • January 20, 2020
I am asked...
How much is Pacific Solo costing and how are you paying for it?
These are not only good questions but timely too. One year ago, Pacific Solo was a mere idea but since then, there have been significant developments involving real costs.
I am not a wealthy man, hence I have had to carefully think through a plan. We own a house and land in Aichi Prefecture. It is my wife's dream house (mine too, a solar powered log house on a hillside) and I have promised her that I will do what it takes to keep paying the mortgage and related costs to keep the home and land in the family.
So, an exercise in reviewing the finances and money aspects is helpful. I have benefitted greatly by hearing from others who have moved onto boats and their financial challenges so I hope that by laying my numbers out here, it may help others. So, here is the thumbnail sketch of costs and how we are paying for it.
I have categorized costs as follows
- Purchase of the boat and initial costs of ￥7.5 million (￥6.5 purchase + ￥1 million immediate costs for essential repairs)
- Upgrading the boat to be prep her for the crossing: Estimate 7-10 million yen over two years
- Funding the educational resourcesfor theGreat Pacific Solo Learning Project.
i.e. videos website, speaking at schools, universities and academic conferences. 1+ million yen a year - Operating and living costs. Estimated to be north of ￥3 million per year
And these costs would be covered through the following
- Purchase: Keel Club (Round 1 and Round 2) and cashing in a private pension.
- Upgrading: Sponsors (plus volunteer crew)
- Educational resources: (Patrons starting at 2 dollars a month)
- Operating and living costs: Navigate 22 Clients (companies, organizations, and Individuals)
If you care to read more here are further details:
Purchase and Initial Costs: Keel Club
(launched June 2019)
The purchase price of Wahine was ￥6.5 million and immediately required ￥1 million to cover:
- first three-months moorage: ￥297,000
- gear box repair ￥480,000
- new propeller ￥200,000
I raised ￥3 million from founding members and a further ￥500,000 from Round Two Keel Club as well as a pledge of ￥1 million plus a ￥1 million long term loan.
To make up the difference, I cashed in a small private pension, but as it was going to take a few months, the former owner kindly offered me an interest-free loan for five months.
Upgrading: Sponsors (plus volunteer crew)
Initially, I had been advised that to get any boat up to standard for an ocean crossing would require a minimum of $100,000 - $120,000 USD. So, my projected budget has always been about ￥13-15 million. With Wahine
costing me already ￥7.5 million including upgrades which I have divided up as follows:
- keep me going (includes many things up above like sails and rigging)
- keep me safe (includes many things down below including bilge pumps, electrics, communications, etc.)
Pop it up for a good look!
I am not entirely sure yet how to recruit sponsors. It will probably be a mixture of selected targeting and also crowd funding. I must add, at this point, that while I am in need of financial sponsors, a big plus is that I have been blessed with volunteers as crew or who have donated their labor (and expertise) to help me with repairs, upgrades and training!
Educational Initiative ➜ Patrons: Monthly Subscribers
(launched December 2019)
I have a professional working relationship with a webmaster and a film maker - although in each case they are charging me much lower than their commercial rates and very understanding of my cash flow situation.
These platforms (website, blog, and YouTube channel) are fundamental to the educational objectives of Pacific Solo, as well as raising awareness of our oceans and encouraging students, teachers and academics to become thought leaders in the areas of sustainable and ethical goal setting and leaving a legacy socially and environmentally. They will be key to the Great Pacific Solo Learning Project.
The plan (and hope) is that these platforms, along with my pro bono speaking, can be funded through Patrons
via the Patreon
platform.
Patrons are people who are committed long-term to supporting this project and the educational aspects of it. For as little as 2 dollars a month, Patrons help fund the production of the videos, and finance my speaking, pro bono, at schools, universities, and academic conferences. The first two Patrons joined in December 2019 (Thanks, Marcia and Shinji). In 2020, I hope to grow this to 100 Patrons. Please check it out at:
Living and operating costs: Clients of Navigate 22
I must also earn a living by working with companies and individuals in areas of mission-alignment and engagement, sustainability, CSR advisory, leadership development, and thought leadership.
The basic costs include:
- Moorage Fees: ￥90,000 a month (including electricity, water, internet, and parking)
- Insurance: ￥150,000 a year
- Living Costs: ￥200,000 a month minimum (food, travel, mobile phone)
- Incidentals: ￥20,000 a month
So there you have it. As of January 1st, 2020, I am no longer a "salary man" and therefore am having to make all this happen.
Wish me luck!
