The percentages to be paid crew members will increase as our production increases. All participating crew percentages
shall be based on the earnings after the following expenses have been deducted from the gross income. These costs
may be higher.
(estimated cost)
FUEL, LUBRICANTS, AND GROCERIES $25,000.
BOAT AND CREW INSURANCE
9,000.
GEAR MAINTENANCE
6,000.
BOAT AND SKIFF MAINTENANCE 6,000.
MOORAGE AND STORAGE
6,000.
PACKAGING AND BOXES 8,000.
APPRROXIMATE FIXED EXPENSE TOTAL $60,000.
(Any shipping charges associated with sales of the product will be deducted from the gross earnings of those sales to
arrive at a number that will reflect the actual net earnings from those pounds sold)
The following is an example of what earnings might be if we sell all sockeye and coho in the form of lox at
just $10 per pound.
Perspective crew members should understand that these recovery rates could be a little bit high but are very close to
what I recovered this year on Copper River red salmon fillets and lox.
Also they should realize that there is no guarantee that we will catch these kinds of pounds, however, the best year
I ever had in Kodiak, I caught about 145,000 pounds of sockeye and at that time there was nearly 3 times more seiners fishing
than have been fishing Kodiak of late. Last year at least one seiner had well over 300,000 lbs of sockeye.
GROSS LBS CAUGHT LOX WEIGHT
VALUE @ $10 PER LB
60,000 LBS
30,000 LBS
$300,000
80,000
40,000
400,000
100,000
50,000
500,000
120,000
60,000
600,000
140,000
70,000
700,000
160,000
80,000
800,000
The next example reflects what earnings would be if we sell all product as frozen, vacuum sealed fillets at just $4 per
lb.
GROSS LBS CAUGHT FILLET WEIGHT
VALUE @ $4 PER LB
60,000 LBS
36,000 LBS
$144,000
80,000 40,000 160,000
100,000
60,000
240,000
120,000
72,000
288,000
140,000
84,000
336,000
160,000
96,000 384,000
The next example reflects the percentage crew members will receive based on final gross earnings after any extra shipping
expenses are deducted. This is for 4 crewmembers not including the skipper. (Numbers in parenthesis reflect the total
payout for a crew of 4)
GROSS DOLLARS LESS $60,000 EXPENSES CREW SHARE
% CREW SHARE DOLLARS
$100,000
$40,000
5% (20%) $2,000
($8,000)
200,000
140,000 5% (20%)
7,000 (28,000)
300,000 240,000
6% (24%) 14,400
(57,600)
400,000
340,000
7% (28%) 23,800
(95,200)
500,000
440,000
8% (32%) 35,200 (140,800)
600,000
560,000
9% (36%) 50,400
(201,600)
700,000
660,000 10%
(40%) 66,000 (264,000)
Note that these percentages are for crew members that remain through the entire marketing process
with me and are only reflective of the dollars earned from the pounds caught while they were aboard.
Crew members that quit before the smoking and marketing of the the salmon, shall have the option to take their
percentage in the form of frozen salmon. They may have the option to take a percentage of the catch that has been turned
into lox if they help in the smoking and packaging of that salmon.
Crew members that quit mid season or are fired for any reason, will receive a flat $50. per day for the time they were
aboard (beginning from the first salmon opener) and shall not be charged for food, fuel and other expenses.
In the event that I need to hire a relief skipper that holds a Kodiak salmon seine permit and has a skiff and seine,
he shall be compensated with a percentage of fish frozen in the round, as lox, frozen fillets, or in dollars that is
equal to 3 times what the average crew share is. (If he wants lox or fillets he or she must help us smoke and package
the fillet or lox).
For determining what the owner will earn in the above scenario, these facts must be considered. The owners payment
on debt will be around $61,000 in year one and then about $20,000 per year for 9 more years. Besides
the debt burden, he may have a marketing budget and a retail location that would increase his total first year non-fishing
related expenses to in excess of $100,000. above the approximate $60,000. yearly boat operation expenses.
Hence the following profit loss table without hiring an extra skipper and assuming $160,000 fixed expenses.
GROSS DOLLARS FIXED EXPENSES
CREW EXPENSES OWNER NET
$100,000
$160,000
$8000 (
-$68,000)
200,000
160,000
28,000
12,000
300,000
160,000
57,600
73,000
400,000
160,000
95,200
144,800
500,000
160,000
140,800
199,200
600,000 160,000
201,600
238,400
700,000
160,000
264,000
376,000
