KM Resorts - what is going on??

[myredracer]

We've been members of KM Resorts (dba Sound Pacific Resources) for 3 years now and recently received a letter that implies there are some sort of major changes coming up. Does anyone know what is going on? There must be something big afoot and I don't like the sounds of it. If anyone knows anything, I'd sure like to hear it.

The letter in part reads:

During the last few years, there have been significant changes in the industry. For your benefit, we will be holding meetings in your area to explain the changes taking place and how they may affect you as a member.

We thought there would be group meetings at Beachwood (in Birch Bay, Wa.) which is our home park. But a couple of days ago, we got a phone call and they have someone who wants to come to our house to talk to us in person. This is rather weird that someone from an American RV resort company would come to Canada to meet in person with members.

The letter goes on to say (in part):

The meeting agenda will cover the following subjects:

How the industry has changed in the last 2 years.
Necessary dues increase. (how much and why)
Possible changes to your membership benefits.
The new and diverse direction going forward.
Maximizing the value of your membership, users and non-users.
Variable Cost Utilities and Industry Surcharges.

The first half of the meeting will be focused on customer service and reviewing any questions and concerns you may have concerning your membership. The second half of the meeting we will talk about the new affiliations and direction that will take the industry and members.



Surely they aren't suggesting that they will unilaterally change the terms and conditions of the existing contract we have with KM Resorts? That would not be legal. Or are they going to do something sneaky?? Are they going to pump the dues way up? Or maybe start charging for as many extras as they can? There are no "standard" membership plans with KM Resorts and when you try to buy one, you have to negotiate each and every term and condition you want included. If you talk to members, they all have different agreements. For example, we had to negotiate being able to stay at all of their RV Parks including Neskowin in Oregon. If you don't do your homework in advance, you will get taken advantage of and it's almost like buying a used car when you sit down with a sales rep. Maybe part of the reason for a face to face meeting is a fishing expedition to see what member's reactions are (plus not wanting a revolt in a group setting?)? We just don't know...

We have enjoyed Beachwood and have been to all of their Parks except one. A few are really nice but a couple are dumps, and one in particular. Beachwood isn't particularly well managed and they do a very poor job of enforcing their rules and of doing maintenance. Some people leave their RVs parked in a site for days with nobody around which they're aren't supposed to do and it takes up valuable spaces. We've seen non-members there too and it's supposed to be members only. We've noticed in the past year that they seemed to have dropped doing the regular security patrols around the Park (a staff person would drive around every hour or so all day). Our dog has been attacked and a friend of ours was too and ended up in hospital to get stitches to his family jewels. I've noticed a number of pedestals have been out of service this year. Something just seems to have been changing...

Beachwood has also been very oversold and it is very difficult to get into in the summer unless you book as far in advance as possible. And if something changes at home and you can't make it at the booked time period, you can't just re-schedule for another time.

We've had enough camping nights within KM CGs to have paid off the cost of the membership. But if we don't like what they are presenting, we may just dump our membership and go elsewhere. There just *might* be a bunch of memberships available for cheap in the near future.... So far, we have enjoyed the Thousand Trails CGs that we have stayed at. But then, I've read about some issues with them in the past too.

[Arcing]

Have you actually tried calling Sound Pacific, I know KM warned members about a company not affiliated with them was calling customer s and using high pressure sales tactics to get KM/SP members to change (buy) a different type of membership. KM said to notify them if any members were contacted this way.

[Blazing_Zippers]

I'm asking you to not have the "representative" meet you at your home!!!! They surely don't need to get inside your house to speak to you. I may sound paranoid, but if you don't know the people, they don't need to be checking out your place.
POSSIBLE SCAM ALERT......

[myredracer]

Well, we had our one-on-one meeting. It was just a high pressure sales tactic (as suggested above) to try and get us to pay another $6,100 on the spot before he walked out of our house. We are not impressed and are ticked off and disgusted to the point of seriously considering selling our membership. The meeting was just another used car salesman type approach just like the first time we met with a salesman at Beachwood Resort. At the end of the meeting, the "independent consultant" did not leave us any paperwork, brochures, or anything else for our records or for evidence that he was even here. He left a card and it did not have his name on it or the name of the consulting firm - it only had the phone numbers for contacting Beachwood Resorts.

Funny thing is, we have no idea who the guy really was. We only know that he called himself Steve and Beachwood sent him. He was rather rude and arrogant too. If was really was an independent consultant, why was he giving us a hard sell to fork out $6K right then and there???

First, the guy purported to be from a totally independent consulting firm and said that KM Resorts had to do that for legal reasons.

The "meeting" was supposed to be in two parts, the first part of which was supposed to be for hearing any issues and complaints we had. That was obviously a ruse to get in our house. We seriously doubt that KM will listen to or do anything whatsoever about our issues. KM has rules but they don't enforce them and doubt they ever will. The "consultant" would not listen to complaints about any other KM park and only about Beachwood.

The 2nd part of the "meeting"...

KM Resorts has supposedly formed a strategic alliance with Equity Lifestyle Properties (ELP). ELP has a reputation for buying distressed RV parks around the US and not maintaining them. Great partner! They apparently want to add a bunch of cabins at Beachwood (mobile homes actually) as they supposedly generate more revenue.

Our current contract allows us to camp at Beachwood Resort (Birch Bay, Wa.) and any of the other 10 KM CGs, including in Oregon. The "consultant" insisted that our contract is with Beachwood only and does NOT allow for camping at any other KM resorts. Total horse poop... We've been to all KM CGs except for Maple Grove and Cascade Meadows in Or. and had no issues whatsoever in getting in. What our contract clearly states on paper totally contradicts his statement. This website from KM Resorts clearly states that Beachwood Resort "is part of the family of K/M Resorts of America".

They want us to trade in our old membership and pay about $6,000 more to upgrade to a "Diamond" membership. He said that the cost for new memberships today costs $13,000 (about 3 times what we paid). There are some additional benefits like 221 day stays and 90 days out to book.

Oh, and wait, there's more... The salesman gave us the option of buying their "Diamond Plus" package on the spot which included a few more perks like frozen dues. Heck, it even included free breakfasts!! If we didn't buy the package on the spot, it would never be available again. (Oh well)

Not sure too many people would be interested in paying $13K for a new membership for the privilege of taking your RV to one of their parks when you can go elsewhere for a fraction of the cost? Thousand Trails, for example, costs under $600 for a year and would get us into over 30 CGs in their western zones. And we're not interested in paying $6100 more for what is working perfectly fine now.

So do we think that paying another $6100 would lead to an improvement in the quality of service and level of enjoyment at Beachwood? Nope, nada, zip.... :R

[Allworth]

They are going to try to get you to upgrade your membership. TRA tried that a couple of years ago. Tell them you are quite happy and they are bound by their contract.

(Unless you want to contribute to the salesman's 401K.)

[myredracer]

Good info., thanks.

If it is a tactic to try and get us to upgrade, they won't get far with us. DW is an accountant, certified fraud investigator and manager of fraud and investigations at a large gov't org. and I have an MBA. The only thing we'd like to upgrade to is being able to book 90 days in advance instead of 60 days. We tried to upgrade to this last year, but couldn't negotiate their cost for it down enough so we walked away. Otherwise we're happy with the content of our present contract that we negotiated in the beginning and DW spent many hours researching on the internet before we sat down with them to buy a membership.

We were starting to wonder if they were planning a merge with some other organization or other big change.

n7bsn wrote:
KM sends these letters out every so often, they go to all members
It's a simply a try to get you to upgrade your membership.

You need to understand the KM can't change anything in your current contract, without your agreement. The consumer office at the Washington AG's office would really come unglued if they tried.

The state of Washington also limits the number of members per spot, which implies that Beachwood can't sell many/any "new" memberships.

If your current contract has frozen dues (like ours) that's it. They can't change it.
If your current contract has all future parks (like ours) that's it. They can't change it.
Of course, unless you agree to a change.

We've been members for, well nearly 20 years. KM owned two locations when we joined. Unlike many/most membership campgrounds in the same period, they have not gone through a bankruptcy. In fact they have expanded during this period. They must be doing something "right".

As I recall Beachwood is no longer "owned" by KM, but rather by one of the McLeod kids (Mike?) Although it's "associated" with KM (KM stands for Kevin, Kelli and Mike(?), Doug's children)

I can tell you that over the last couple years KM has been pouring a lot of money into improvements and deferred maintenance at their "new" resort of Ocean Breeze. The previous owners of this location has seriously neglected this park. New sewer dump-stations, new hot-tub, new sauna, etc.

KM also rebuilt the septic system on the "road" side of Ocean Mists and is in the process of upgrading the club-house kitchen to commercial standards (under pressure from Grey's Harbor County). They have closed the hot-tub, until they can get a commercial grade one installed (under pressure from Grey's Harbor County)

KM also did some work at Maple Grove this year, maintenance and improvements.

A couple years ago KM built an entire new club-house, with a commercial kitchen (under pressure from Greys Harbor County)

Personally, I have some faith the KM is running the chain reasonable well

[n7bsn]

KM sends these letters out every so often, they go to all members
It's a simply a try to get you to upgrade your membership.

You need to understand the KM can't change anything in your current contract, without your agreement. The consumer office at the Washington AG's office would really come unglued if they tried.

The state of Washington also limits the number of members per spot, which implies that Beachwood can't sell many/any "new" memberships.

If your current contract has frozen dues (like ours) that's it. They can't change it.
If your current contract has all future parks (like ours) that's it. They can't change it.
Of course, unless you agree to a change.

We've been members for, well nearly 20 years. KM owned two locations when we joined. Unlike many/most membership campgrounds in the same period, they have not gone through a bankruptcy. In fact they have expanded during this period. They must be doing something "right".

As I recall Beachwood is no longer "owned" by KM, but rather by one of the McLeod kids (Mike?) Although it's "associated" with KM (KM stands for Kevin, Kelli and Mike(?), Doug's children)

I can tell you that over the last couple years KM has been pouring a lot of money into improvements and deferred maintenance at their "new" resort of Ocean Breeze. The previous owners of this location has seriously neglected this park. New sewer dump-stations, new hot-tub, new sauna, etc.

KM also rebuilt the septic system on the "road" side of Ocean Mists and is in the process of upgrading the club-house kitchen to commercial standards (under pressure from Grey's Harbor County). They have closed the hot-tub, until they can get a commercial grade one installed (under pressure from Grey's Harbor County)

KM also did some work at Maple Grove this year, maintenance and improvements.

A couple years ago KM built an entire new club-house, with a commercial kitchen (under pressure from Greys Harbor County)

Personally, I have some faith the KM is running the chain reasonable well

[Halmfamily]

Time to sell?

[Leeblev]

What they are going to do is raise your dues, and then pressure you to upgrade your membership.
This is exactly what my resort tried to do with me. I refused to let them come to my house, but agreed to meet at the resort and got the same dog and pony show that I got when I joined.
Sounds terrible, but it is nothing more than a sales gimmick.

[bdpreece]

Suspect this is a lot of BS just to get you to agree to a meeting where they will try to get you to upgrade your membership to a more expensive one. These type of scams have been going on as long as campground membership have been sold. Most times the people holding the meetings are not even directly employed by the company they claim to represent. Expect to hear things like "frozen dues" "earlier reservations" etc.

We are members of three different membership campground chains and have received similar letters from each one however the part about coming to your home is something new. Then again these guys work on commission so no different than any other door to door salesman.

[myredracer]

downtheroad wrote:
This sounds like it's going to cost you....:?

Yup - first reaction. Just doesn't sound good at all. And sending someone from the US to Canada to individually meet members? (The vast majority of users are Canadians at this particular CG).

[downtheroad]

This sounds like it's going to cost you....:?