How Magical Tiki increased charter boat bookings with deposits and automatic balance collection
Using Downpay, taking partial payment inside Shopify checkout and charging the remainder before departure grew sales without the risks and frustrations of invoicing and BNPL.
When they show up at the boat, they're fully paid. There's no awkwardness. There's no weirdness. They just get on the boat and have a good time.
— Jeremiah Smith, Founder, Magical Tiki
Turning inquiries into confirmed bookings with deposits
Magical Tiki is not a typical boat charter, or even a typical floating tiki bar. Hint: it's not just called magical because it's delightful (which it is).
But like many businesses using Shopify for bookings, founder Jeremiah Smith faced a challenge early on.
Customers would hesitate when it was time to make a full payment upfront for a private cruise that was weeks or months away.
He switched to using Downpay and Checkout Links to collect a deposit at checkout and then charge the rest automatically to the card on file the day before departure.
This new approach made it easy for customers to commit, and just as easy to make sure the business got paid.
Magical Tiki's story
Jeremiah Smith didn’t start his career at sea. For over two decades, he'd been a producer for reality TV shows, including Vanderpump Rules.
When COVID disrupted the industry, Jeremiah and his wife sold their house in LA and bought a sailboat in the Caribbean. They lived on it full-time with their kids, visiting 14 countries. He grew a sailor's beard. Then they went back their old lives. But something had changed for Jeremiah.
In between TV projects, he certified as a captain and began working for local charters. With the goal of eventually starting his own charter business, he added his name to the four-year waitlist for a license.
When his application was approved after only a few months, he didn't have his unique angle yet.
Looking at all the charters in Marina del Rey again, however, something stood out to him.
No tiki boats.
And there definitely wasn't one with a professional magician—him.
He ordered a 26-foot Tiki boat from a builder in Oregon, and launched Magical Tiki, using Shopify to power sales.
Early signs were good. Demand was high.
But although he may have been able to read minds, turning interest into committed bookings proved trickier than he expected.
The problem: Full upfront payment created booking hesitation
Jeremiah's goals were to:
- Make the booking experience easy
- Protect his business from cancellations, chargebacks, and flaky customers
- Ensure cash flow for hiring crews
At first, he asked for the full price of private charter bookings at checkout—Shopify's native payment model. This approach gave him cash flow security, but customers would stall when it came time to commit.
The conversion rate wasn't very high, because I was asking people to pay over $1000 for an experience weeks or months in the future.
— Jeremiah Smith, Founder, Magical Tiki
He'd heard Buy Now, Pay Later apps were a way to spread out the cost for customers, but the poor reputation and high merchant and customer fees turned him off.
Other charter companies took deposits. An ideal solution would let him:
- Collect a non-refundable deposit at checkout
- Collect the remaining amount before the cruise
Jeremiah tried out one third-party app that offered deposits on Shopify, but manual invoicing wasn't the answer for the balance. He had to hope that guests would pay before they showed up to get on the boat. Otherwise he faced awkward encounters and shameless excuses.
This meant another requirement:
- Charge the remaining amount automatically
He found the right fit with Downpay, a partial payment app developed by Shopify alumni.
The solution: Deposit automation with Downpay
Customers now follow these steps:
- Reach out via the contact form to coordinate a date and time.
- Receive a unique checkout link using Downpay's Checkout Links integration.
- Pay a 20% non-refundable deposit inside Shopify checkout.
- The day before the cruise, have the balance automatically charged to the card on file.
Why Downpay was the right fit
Downpay allowed Magical Tiki to manage deposits and future payments directly through Shopify.
It provided:
- A simple way to collect non-refundable deposits for charter bookings
- Automatic balance collection before each cruise using Shopify Flow
- No need to manually send invoices or chase customers for payment
- Lower booking friction compared to requiring full payment upfront
This structure makes it easier for customers to commit to the experience while still protecting Jeremiah's business from cancellations and non-payment.
How Magical Tiki could have set up a Shopify Flow automatic payment collection workflow using Downpay.
You can explore how Downpay works yourself in the interactive demo.
Results: Higher conversion and smoother charter days
Once Jeremiah switched to the deposit model, the impact on Magical Tiki was immediate.
Lowering the upfront commitment made it easier for customers to book, and the growth numbers showed it. And automatic payment collection has been a huge relief.
The conversion rate has gone up significantly, compared to when I asked for full payment upfront. And once they pay that deposit, I know their balance is going to be collected. That gives me peace of mind.
— Jeremiah Smith, Founder, Magical Tiki
Why this matters for other Shopify merchants
If you have a business model where you need to secure revenue to build a custom product or a run an event that's happening later, Jeremiah recommends using Shopify with Downpay and Checkout Links.
Compared to industry-specific tools like Fair Harbor for charters, and sites that are built for event and reservation business models, Magical Tiki has:
- More flexibility
- Lower fees
The takeaway
For Magical Tiki, nonrefundable deposits with automatic balance collection increased booking conversion, removed the hassle of manual invoicing and payment follow-ups, and ensured every charter was paid before departure.
Read more case studies and learn how Downpay can enable higher sales for Shopify merchants.