buying campground

TenOC wrote:

donn0128 wrote:
Do you really want to work 100 hours a week for less than minimum wage? Sounds really romantic, but the investment in time and money can be huge. And the rewards minimal at best. At the worst, poor managment, location, or any number of other factors could wipe you complete out financially.

Invest the money into mutual funds and let someone else do the work. Or if you really want to WORK be a campground host at one of the national parks. That way you can enjoy someone knocking on your door at 3:00AM complaining about no toilet paper in the bath house. . . .:Z

Got to disagree here. Parks can be very profitable. But you have to run them as businesses. As for long hours, only somewhat true. If you have a reasonable sized park, hiring help is very feasible. Yes, if you only have 30 sites, you are going to be it. But the daily operations do not really take much labor. And, many parks are seasonal, so you take those 70 hour summer work weeks in exchange for 5 hour weeks in the winter. Not a bad exchange.
A couple of places people get into trouble are in hired labor and pricing. Some park owners hire out all the labor. If you can't dig up a broken pipe or repair a leaky faucet you probably shouldn't own a park. Hiring a plumber, a carpenter or an excavation company for every drip or crack will quickly place you on the road to financial problems.
Owners also need to realize they need to price for profit. Too many parks fear losing a customer or two over a couple of dollars increase in price. That price increase is earned over every camper night, a dollar increase in price at a smaller park will return a thousand or two to the bottom line.
I know of one park where the owner stubbornly refused to raise rates over many years. He was always complaining he was barely making ends meet, having to work long hours and his guests were always troublesome and he found himself sliding backwards financially, costs were rising while revenues were not. Finally, one year he raised his price $2.00. He didn't lose any business and did make a bit more money. He then settled in to a pattern of raising prices and now he is about $10.00 higher than when he started. He now is making money, has the ability to hire some help, has some money to re-invest into the business and his customer mix has improved. He is a "Happy Camper". If a business owner is not making money, there is no way his business can serve the customers. Profit is not a dirty word. It needs to be priority number one because without a profit, the business cannot improve and grow.

Ah, ever heard of retiring? Getting old and wanting to quit working?
:)
Lynn

BobR wrote:

westernrvparkowner wrote:
There are many reasons why a business would close, but I haven't seen or heard of any that were successful and just shut the doors

Of all comments stated, truer words have not been said.

westernrvparkowner wrote:
There are many reasons why a business would close, but I haven't seen or heard of any that were successful and just shut the doors

Of all comments stated, truer words have not been said.

joe b. wrote:
On any closed or open campground being considered, make sure to visit the local Zoning and Building department to see if the campground will still meet current codes after a change of ownership. What out for Grandfather Rights, the campground may currently be operating under, that may disappear with a sale.

I have watched several campground prospective dreams go up in smoke when they find out all renovations have to be done to current codes. Like finding out that sewer and electrical work has to be done by, or at least signed off by licensed professionals.
Just do your home work and make the best decision for yourself that you can.

Good advice. Also check on current Septic or Sewer system requirements. Some local jurisdictions now have prohibitions against RV hook-ups being connected to their sewer systems. They don't like some of the chemicals that are used in holding tanks.

On any closed or open campground being considered, make sure to visit the local Zoning and Building department to see if the campground will still meet current codes after a change of ownership. What out for Grandfather Rights, the campground may currently be operating under, that may disappear with a sale.

I have watched several campground prospective dreams go up in smoke when they find out all renovations have to be done to current codes. Like finding out that sewer and electrical work has to be done by, or at least signed off by licensed professionals.
Just do your home work and make the best decision for yourself that you can.

donn0128 wrote:
Do you really want to work 100 hours a week for less than minimum wage? Sounds really romantic, but the investment in time and money can be huge. And the rewards minimal at best. At the worst, poor managment, location, or any number of other factors could wipe you complete out financially.

Invest the money into mutual funds and let someone else do the work. Or if you really want to WORK be a campground host at one of the national parks. That way you can enjoy someone knocking on your door at 3:00AM complaining about no toilet paper in the bath house. . . .:Z

So if the OP doesn't do it, who is going to open parks so rvers have a place to stay? Due diligence is important though and only you can make the decision.

We were planning on opening an rv park in Mexico several years ago. A U.S. company was will to help us design, plan and finance the park.

I think they call it, "turning a business around" and some people have that talent. We don't know exactly the case of each park that closes. There are many possibilities.

I say to the OP, go for it and good luck in your venture.

Sprink-Fitter wrote:
Most of you that respond must be business experts. Most are trying to tell him he can't do it, how do you know? Beleive it or not not every closed campground is a failure, some close for other reasons.

Live a little.

LOL -- but what these responses are really illustrating is most folks are wired to risk averse and NOT entrepreneurs. Most people think they "could do that" but won't ever take the risk. There is some sound advice sprinkled in, but most of the opinions are the same that Roy Kroc or Howard Schultz heard from folks when they made their bold moves to buy McDonalds and Starbucks respectively. Most entrepreneurs fail many times before they succeed, and even in success they will have set backs. But more than anything else they have a dream, a vision and a plan when others only see risk and failure.

OP I certainly wish you the best.

Just like anything Location, Location, Location,......... and of course conditions, regulations, etc....... Not too many campgrounds are like the one we go to at Myrtle Beach 300 acres almost a mile of ocean front (probably one of the largest campgrounds in the country). The couple that started it from scratch in the 1970s recently passed away & their 5 daughters are the heirs. I have heard that they take in over 3 million dollars a month (at least in the summer) & I believe it. but they also have a lot of overhead costs. But campgrounds this size are extremely rare. It is hard to tell what the land alone is worth & taxes...... Today it would be cost prohibitive to start one there.

It hard to make a quick profit.I check years ago for the price of the campground but when I find out how much is I say forget about.A good location campground will be in the millions .