Hello Cathy,
I’m glad to hear that you enjoyed my Campground Success article about innovative ways to increase campground profits in stores and with peripheral sales and rentals. There have been several articles written recently suggesting that campgrounds have an opportunity to earn income by providing charging stations for owners of electric vehicles, both campers and off-the-road traffic. Even if the numbers are not quite there yet, the free press that you can earn from being on the cutting edge of this green technology can be invaluable. If your facilities are suitable and if you can handle the added capacity, you might also take a tip from campgrounds who make their rec halls available for rental or who sell swim club memberships for use of their beaches or pools by local non-campers. If your facilities are easily accessed from the highway, other facilities might be open to the public as well. These might include miniature golf courses, snack bars, and even your convenience store. These will be the most successful if there are no similar facilities within a reasonable distance or if they distinguish themselves by presenting a quality experience.
With respect to convenience stores, you have asked what types of products sell best. Of course, I would suggest consulting with the experts who serve the industry with store merchandise, including Wilcor and LCN. Beyond that, I would suggest the following guidelines:
Convenience items and basic necessities. Cover all of the basics. If you force a camper to drive to a nearby supermarket or convenience store, they are likely to buy everything there, not just the one item that you failed to stock.
Local merchandise. Capitalize on selling food products and merchandise that are made locally and represent the ideals of your state or local area. People are camping with you because of the draw of your local area. Do your best to feed that experience.
Quality merchandise. People these days are fed up with junk, and no kid needs a rubber snake made in China. By stocking quality merchandise in your store, you are sending a message about the quality of your campground. Why try to compete with the local dollar store, when your customers will reward you for showing them respect in your selection of merchandise?
Made in America. Camping is as American as baseball and apple pie. Even more American than the typical Chevrolet these days. Particularly with non-perishable merchandise, promote food products, clothing, and camping supplies that are socially responsible and American-made. People are willing to pay a premium knowing that they are helping to keep their friends and neighbors working.
Socially responsible product choices. You are in a position to influence buying and consumption patterns on a small scale. Take advantage of that opportunity to sell only 100% recycled paper products and try to avoid selling products that have excessive packaging or are inherently disposable. Stock cleaning and septic products that are non-toxic and biodegradable. Just think of the good you can accomplish by introducing even 100 people to a more socially responsible lifestyle.
In all of this, I guess that the bottom line is that you will profit the most by thinking a bit differently, rather than simply imitating what has already been done over and over and over again.
Advice from David Strait, Strait Answers Marketing Communications:
Cathy,
There are several revenue-generating ideas in use by campgrounds, depending upon park-specific factors. If you can rent bikes or trikes or 4 wheel carts, water toys, jet skis, etc. Some campgrounds have seasonal dinners where they charge a little for a Thanksgiving feed, or spaghetti night or ice cream socials (mostly to cover costs).
As for store items, I’d recommend you offer a few necessities like diapers (we forgot them once on a camping trip), as much out of customer convenience as for profit. Things people will use at your place: ice, sun screen, band aids, bug repellant. Most camps have a few RV necessities like sewer hoses etc. There is a program for selling ice cream bars by Nestle (I think).
Hello Cathy,
Thank you for submitting this question as a result of reading Peter’s terrific Campground Success piece.
I’d begin by suggesting you consider your customer demographic. Based upon your location, I’ll assume you’ll be owning/operating a family park as opposed to an adult resort. That being said, leaf-peeper season and both shoulder seasons may bring you a more mature guest so plan to adjust your ancillary offerings accordingly.
Here are a number of ways you might please your guests and earn ancillary income:
Spas – offer guests spa treatments including massages and reflexology. During the summer moms love private pampering time – even if it’s only two-hours. In the shoulder season this may be an add-on to a packaged weekend deal.
Game rooms – provide kids with an arcade play place. Offer play prizes … they are extremely inexpensive and keep kids coming back.
Pedal cart/bicycle rentals – highly popular family activity
Boat/tube rentals – if you have a water feature consider renting canoes, kayaks, tubes, etc.
Snack bar – cool drinks and ice cream treats always please
“Site-service” (akin to room service) – deliver café orders to your camper’s site for a nominal fee. You can expand on this by delivering firewood or creating an “ice cream truck”. Other ideas??
Mini golf – everyone loves mini golf. Open the course to the public if possible. As Peter mentioned, it can be a real money-maker. In fact, one park owner I know makes more from his mini-golf course than his campsites!
Attraction ticket sales – convenient for guests and nice ancillary income for you. Partner with local attractions to make this happen.
Equipment sales – for activities such as a frog hunt, etc.
Snack treat packages – such as s’more makings for around the Saturday night Mallow Roast/ Bonfire, wine and picnic baskets for leaf-peeping, chocolate for romance weekends, etc
Activities such as Build-a-Bear and Colortime Crafts – great profit centers
Themed meal events are always popular. Breakfasts are winners, too. But keep close watch on your food and labor costs if you’re looking for a profit in addition to guest memories and goodwill.
Yurts – if you have site space and a budget for it, yurts are a novelty lodging option that’s a huge draw
Tent shelters/lean-tos – Al Daniels of Normandy Farms in Foxboro, MA just did a short video on this. $3K to build, $10 add’l site fee, 2 year pay back.
Consider connecting with other park owners/operators in your area and online. Join and participate in the Campground Success LinkedIn page, attend state, regional and local campground association gatherings and, if you can financially swing it, attend ARVC’s annual conference … this year in Savannah, GA Nov 28-Dec2.
Best to Cathy and please feel free to connect if I can be of any assistance.
Advice from David Gorin, David Gorin & Associates:
Cathy,
All of my Campground Success colleagues have given you some sage advice. Not much I can add to the lists of typical ancillary sources of revenue except maybe selling tickets or tours for local attractions, amusement parks, etc. Commissions can be a good source of revenue and you can spiff your front desk people who actually sell them – they make some extra money and the park makes some extra revenue.
I am a very strong believer in trying to get the most revenue out of your sites so … do you offer premium sites at premium prices? This can be done even with seasonally rented sites. Not all sites need be equal – better placement, larger sites, better views, upgraded amenities all can command higher prices. Do you use some variation of yield or revenue management so you get the best pricing for the most popular periods and events? Think about holding back a few sites for sale 3-5 days before a popular period and raise the prices for those sites for these last minute reservations (people will be happy you have a site available and don’t worry about paying a surcharge – although they may not even know that the price is a bit higher than if they’d reserved earlier. With the high costs of electric these days, consider adding an electric surcharge for the largest RVs – say those over 40'. They do use more electricity than smaller units.
Also, getting off-peak business, extending the season is another form of revenue growth. Renting facilities to local groups, hosting weddings or group parties, open to the public holiday parties, Adding facilities that can be open to the public on a pay for use or membership basis – large inflatable water slide, mini-golf, etc. are some things that attract local folks.
Be happy to talk with you anytime.
This Q&A is
copyrighted by its participants and may not be reproduced for commercial
use without express permission.
