15% discount at Good Sam Parks

rr2254545 wrote:

sammytoo wrote:
Most parks just set their price 10% over market value anyway. They have to do that to make the GS membership pay for itself. If you change the discount to 15% they'll raise to 20%

How did you determine that

That is how every business works, RV parks included. While I won't necessarily agree that prices will rise 20%, they will have to raise in excess of 15% to maintain the exact same revenue. Simple example: I want to net $45.00 per night. I set the rate at $50 and with a current 10 % discount, I get my $45.00 If the discount rises to 15% I don't raise my rate 5% to $52.50, but I have to go to $52.94 to get the exact same $45.00 after discount. That is near a 6% increase in rates to offset a 5% jump in the discount rate.
Good Sam doesn't negotiate anything with the Good Sam Parks. They don't reimburse the parks for the discounts. They could make the discount 99% if they wanted to. The final decision is up to the parks, and that decision is whether or not to remain in the system. I know I would probably opt out if the discount increased. I don't want to have to raise prices and not put any additional money into my greedy little palms.