Forum Discussion
myredracer
Sep 11, 2016Explorer II
westernrvparkowner wrote:
Doesn't take anywhere near 125 sites to be profitable. Say you had a 40 site park and built it for $800,000. Operates for 8 months out of the year with a 60 percent occupany rate (not bad, but not exceptional either) At $40 a night, that would be revenues of $230,000. Figure operating costs of about 30 percent, you will have net income of about $160,000. That's a 20 percent return on your investment, not too bad. Even if you paid a manager couple $5,000 a month for those eight months, instead of running it yourself, you would have a return north of 15 percent. Can't get that on your savings account.
The trouble with the OPs situation is $50,000 is a far cry from $800,000 and building a park in the middle of nowhere won't ever generate $40 a night rates or 60 percent occupancies.
125 sites didn't seem right. This is the first time I've seen a CG owner post actual realistic numbers. Thanks. We've been in a few CGs with only around 20-30 sites so small ones do work.
Curious, how does an owner market your CG/RV park to get customers in the door, esp. if new? Do you need to get connected with C-C, RPI or one of the others? Does internet only work? Get into local tourist type magazines? It's nice to think about building a CG but I'd be pretty nervous that nobody would show up.
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