Am I too picky about cg's?

monkey44 wrote:
WRVPO Quote: "Actually, I get no more customers. My old restrooms had very high ratings, but they were dated. We sell out every day in the season."

I think my point is, keep he facilities maintained, you keep customers, let it run down and you'll eventually lose customers. So, the fact that you stay full means you continue upkeep, at least it's a factor.

And regardless of how anyone utilizes the "cost factors", I'd bet you'd rather keep full at a lower rate than have empty sites at a higher rate. Doesn't take many empty sites to drop the revenue below a profit margin, as the overhead stays the same no matter how many sites are full or empty (of course, full sites W/E change it a little, but not a lot).

At $30 per night rate at a $5 margin, if you have one empty site, it takes six full sites to break even for that one empty site. SO keeping sites full is better than raising rates and losing customers, although I'm 'guessing' at the margin here.

I would much rather have empty sites at a higher price. With 100 Sites, 80% occupancy at $50.00 is much more profitable than 100% occupancy at $40.00. Revenue is the same, and expenses are 20% less. When you lower prices, that pricing cut goes against all the sites. If I were to lower the price $5.00 when I have 80% occupancy and 100 sites, I would need to sell $400.00 worth of sites, just to get the revenue back to what it was at the higher rate. Then I would have to sell more sites to generate any additional profit. So you would be looking at a situation where a $5.00 price cut would need to increase occupancy by a minimum of 15% (80 rented sites at higher rate, so a 15% increase in occupancy will be 12 additional customers. It took 10 to get the revenue to break even, now we have the revenue of the two additional sites to cover the costs of 12 additional guests). We MIGHT be at a break even figure now revenue-wise, but I now have 15% more people to check in, a 15% increase in the usage of facilities, 15% more trash, 15% more sites to clean etc. This either means we all work harder, for no extra money, which doesn't make a whole lot of sense. Or we will have to hire additional staff, pushing that revenue and income equation further out of whack.
And if that price increase didn't generate a 15% increase in business, which is the most likely situation, we are losing money. And none of this takes into consideration what might be the most important consideration of all, what changes to our guest's demographics will lower prices create. The fact of the matter is, the low price product attracts the low price consumer. The store sales will suffer, and the client mix may very well go down hill.