Conversation from three days ago (names changed to protect the guilty):
"Hi, welcome to Concrete Paradise! How many nights will you be staying?"
"Just tonight."
"Ok, that'll be $48."
"I'll pay you $24."
"Excuse me?"
"I don't want to pay $48. I'll pay you $24."
"$48 is the rate for a full hookup site, sir."
"Yes, but I don't want to pay that. I'll pay you $24." (he said, patiently)
"I'm sorry, sir, the rate is $48--"
"Thank you. Good night." (exit our hero)
"WAIT, SIR!!!!"
SCENE II
"Flattened Squirrel RV Resort. May I help you?"
"HI, I'm out on I-117, about ten miles west of Toxic River. Do you have space for a 24-footer to stay tonight?"
"Yes, sir, we do, and the rate is $45 for tonight, or $55 if you want a premium space."
"What's a "premium" space?"
"Anything within 500 yards of the restrooms."
"I'll pay you $25."
"Excuse me?"
"$25. Or I keep right on driving past you."
(muffled conversation)
"Okay, come on in. But sir?"
"Yes?"
"Don't tell anyone we gave you this rate."
"Mum's the word."
In a market filled with people who are evidently so flush with cash that they'll pay anything the Slab City people ask, I remain one of the holdouts who actually has some price resistance. Remember: the actual OPERATING cost to the owner of a nightly hookup RV site is about 83 cents, so they would rather rent it to you at $20 than to nobody at $0.
I would like to know where you came up with the rate of $.83 a night. Considering the electric, water, sewer, taxes, cost of property, employee costs, etc., I have a problem believing this figure.
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RandACampin wrote: Ummm, If ya dont like the rates, don't stay there.
-rog
Yes, Exactly what the OP is saying/doing.
Tell them what you want, tell them how you want it, and then, make them do it!
Not interested? There ARE options!
tandkj wrote: I would like to know where you came up with the rate of $.83 a night. Considering the electric, water, sewer, taxes, cost of property, employee costs, etc., I have a problem believing this figure.
Most of those costs are fixed costs whether the site is rented or not. Water and electric are really the only non-fixed costs, and the water is pretty cheap in most places. I'm not saying that $0.83 is correct, only that the non-fixed costs aren't all that high. As a comparision, the daily cost for water and electric for my stick (stucko) house is about $3.22 / day, and includes heating and AC for a 1550 sq foot structure and water for bathing, dishwasher, washing machine, outside plants, and trash pickup.
That's great. I'd rather have a little something than nothing at all. A couple of years ago I needed a simple overnight stop and inquired at the local hotel that also manage a small RV CG next door. She told me the rate and I told her I did not need any services, just a place to park and get some sleep. She told me to park in the gravel parking lot behind the hotel and adjecent to the RV park. Charge for the gravel lot ZERO. Funny how many will choose nothing when they could have had something. Oh, my friends parked in that lot also.
I'd pay $10 bucks for a nice quite parking spot with no services available for that rate. Better than the Wal Mart
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tandkj wrote: I would like to know where you came up with the rate of $.83 a night. Considering the electric, water, sewer, taxes, cost of property, employee costs, etc., I have a problem believing this figure.
The reason why you have this problem is that only the first two costs you mentioned are OPERATING costs (the employees will be paid the same whether or not YOU stay there tonight). The remainder are FIXED costs. And yes, the cost of running 30 ampere electrical current for two hours, plus the cost of 40 gallons of fresh water, does indeed add up to less than a dollar. The vast majority of RV park fees go toward amortizing FIXED costs; once the infrastructure is in place, the operating costs are almost trivial compared to that amortization (mortgage payments, among other things). Therefore, when it is obvious that a nightly space can't be sold for full price, it's still to the operators' advantage to sell that space, even at a deep discount. Think of an airliner taking off with empty seats, and you'll see what I mean. MY advantage is that as an accountant an a small businessman, I'm aware of these realities.
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