Canadian Dollar

Motels and airlines do it all the time. It's better to make a small profit then no profit. I seriously doubt that they would rent a site for below their cost. I would say they are very business savvy.

rv2go wrote:
I have discussed the the Canadian dollar with all our snowbird friends from Canada and each agrees that it balances out by coming south. Not having to heat the house. The cost of gas or fuel. A lot is saved by going into Mexico for dental and drugs(the legal kind). Then of course, they all say that Beer and liquor is cheaper.

The two things that are a lot cheaper are gas and booze. To be able to feel that we get our money's worth the answer would be to drive drunk all the time.

Actually come to think of it we went south (Arizona) in 09 and the Canadian dollar was at $.70. We put on alot of miles that year travelling here and there. Those memories are worth more than the lost dollars.

So how much do you spend on heating during a Canadian winter?
It seems like there should be some savings by eliminating your heating bill that could offset the cost disparity in the the dollars?

Pretty hard to "eliminate" a heating bill. Can't shut the heat off or your house will freeze up. Reduce it? Yes. Don't save a tremendous amount of money. For 4 months it equals to about $200 using the cost of our heat pump.

Utilities and several upkeep expenses like maintenance lawn upkeep, insurance etc are considered direct cost meaning they are necessary expenses to make the campground suitable for human habitation. This doesn't include the paper work and salaries of office workers. This is another cost considered indirect expense but yet a necessity for a sound operation of a legitimate business.
Unless the business is run "under the table" could they even break even. I used to run a contracting business and the business model mentioned with deep discount is simply untenable.
I think that running a campground is not any different. . .you gotta make profit to survive.

happycamper002 wrote:

almcc wrote:

...The other thing we notice at this time of the dip is that some parks offer reductions to Canuks, the park we are at offers 5% off for Canuks and I understand some parks offer Canuks "at par" rates.

If you do some planning, the hit isn't as bad!

RV Parks offering Canuks at par with USD aren't savvy entrepreneurs. The expenses for utilities and other services for upkeep won't offer such discounts for their services...not at over 30 percent discount. As the CDN $$ had diminished in value is reflected in the past year or so.

This reminds me of a joke about a couple of fruit vendors selling their produce the same amount they paid for their ware.

At the end of the day, they were overjoyed having sold all their stuff so they decided to buy another truck so they could load more and sell more persimmons.

I would avoid that RV park like a plague who runs this business model.

A vacant RV lot generates 0 dollars, a lot rented at 30 per cent off generates $$$, rent 30 of your vacant lots and it adds up to big $$$.
Your real estate taxes and insurance as well as many other costs remain the same, sounds like a smart move to me. You may also generate loyalty and have return business at full price in future years.

slickest1 wrote:
Here I sit at home (B.C.) this winter and did not go south (AZ.).
There are a few reasons the low Canadian Dollar being one.

I was sitting and looking out the window at the snow we don't usually get much of and what do I see? Robins 4 of them. I have never seen Robins around here at this time of the year.
The Canadian Dollar is so low that even the Robins aren't going south!!
To all that are in warm places ENJOY!!

I think citing the level of the CA Dollar doesnt really fit with reality. Almost all goods and services in the US are significantly cheaper, in my experience, than in Canada. Even with the exchange rate in OUR favor Canada is still more expensive than the US.

Therefore in real terms you will still have a bargain by coming south.

Compare Fuel Prices Here in the RGV gas is $1.99 to $2.05 Diesel is about $2.11 to $2.39. Food is much cheaper here than anywhere I bought food in Canada this year.

In real financial terms the exchange rate is not the issue. Take note I heard this same refrain from Canadians in Mexico (Baja) last winter to my complete surprise. Mexico is far cheaper than the US and still much much cheaper than Canada...? So I could never figure out why our northern friends complained so much about the prices.

To the page 1 post: 1/0.74 = 1.3513, so being charged 1.38 doesn't seem that bad, does it? It's equivalent to 72.5 cents. I'm sure there are fees incurred by the retailer or card company or bank.

happycamper002 wrote:

almcc wrote:

...The other thing we notice at this time of the dip is that some parks offer reductions to Canuks, the park we are at offers 5% off for Canuks and I understand some parks offer Canuks "at par" rates.

If you do some planning, the hit isn't as bad!

RV Parks offering Canuks at par with USD aren't savvy entrepreneurs. The expenses for utilities and other services for upkeep won't offer such discounts for their services...not at over 30 percent discount. As the CDN $$ had diminished in value is reflected in the past year or so.

This reminds me of a joke about a couple of fruit vendors selling their produce the same amount they paid for their ware.

At the end of the day, they were overjoyed having sold all their stuff so they decided to buy another truck so they could load more and sell more persimmons.

I would avoid that RV park like a plague who runs this business model.

There is much more to discounting than filling spaces. What happens when a few of those Canadian guests start talking with their US neighbors and it gets out that the Canadians are getting a 30% discount that the US customers are not? Most likely, backlash. The US guests will then vote with either their feet, or they will purchase Canadian funds and pay their site fees with Loonies and Toonies.
The only place I would consider such a discount is if my business consisted of primarily Canadian customers and I could price my sites with the 30% exchange discount built into the price. Post my price at $1000.00CD, Knowing I will be getting $700.00 US. That would be no different than any other discount except I would be pretty much writing off the US business, which if I wasn't getting any to begin with wouldn't be an issue.

westernrvparkowner wrote:
...What happens when a few of those Canadian guests start talking with their US neighbors and it gets out that the Canadians are getting a 30% discount that the US customers are not? Most likely, backlash. The US guests will then vote with either their feet...

I know I would.

I don't mind a month or two, but not ongoing. The way I would look at it is you're stealing from Peter to pay Paul, and no one wants to be Peter for any length of time. A hand up, is different then a hand out.