METHOD FOR ESTABLISHING MINIMUM SITE RENTAL FEES
There are basically four methods of establishing site rental fees
for your camp-resort:
1) According to Competition:
A. Does competition offer the same services and facilities?
B. Generally competitive rates are too low.
C. You are allowing competition to establish rate standards,
thus return on your investment.
2) Demand - What will the customer pay?
A. Guesswork involved.
B. No one will tell you if site fees are too low.
C. If site fees are too high, there won’t be anyone around
and Cash Flow Method (Word Document: refer to next section/Establishing
4) Combination off all of the above. Probably the best approach.
Method #3 will show what you should be charging and this can be
adjusted for local conditions and the facilities and services
you offer at your park.
AND CASH FLOW METHOD FOR ESTABLISHING MINIMUM SITE FEE REQUIREMENTS
(Word Document: refer to next section/Establishing Site Fees)
1) Complete Exhibit 1,
2) Complete Sections One, Two and Five
3) Complete Exhibit Two
4) Complete Section Four, Exhibit One
The 'Adjusted Site Rental Fee' is the fee you should strive to
collect in order to meet your investment goals.
REGARDLESS OF WHAT RATE YOU ESTABLISH, THE VALUE OF YOUR FACILITIES
AND SERVICES MUST MEET OR EXCEED THAT RATE!