wapiticountry
Mountain West
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Joined: 10/02/2011
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mikestock wrote:The first rule in business: Charge too much and you won't make money, charge too little and you won't make money. The best rate to charge is the one that maximizes profit. Unless this campground is full when all others in the area are full he needs to adjust accordingly or learn the hard way. Apparently that park has a business plan that works for them. They were able to accommodate a last minute traveler when all the other parks were full. According to the original poster, the rate was much higher than the other parks, but he still paid because it was the only park with a vacancy that served his needs. The business plan of the park may very well be becoming the provider of last resort. The original poster said the park had no visual appeal, didn't have a lot of amenities and yet it was half full of guests who were paying double what other parks were charging. That means that park has much higher margins and lower costs than their nearby competitors. It may very well be the most profitable of all, and that is what the ownership ultimately interested in.
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hornet28
Muskegon Mi.
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Joined: 07/27/2017
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I was through that intersection early June 2020 and don't remember seeing a campground. Maybe that's the reason for newness appearance
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bobsallyh
Livingston, TX.
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Joined: 01/08/2004
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hornet28, it is hard to see from US 93. there is a goofy connector to it, and just last month in the K-Town paper, the city or county is thinking about re-doing it. An outfit from Florida came up and built it. If he was an elks Lodge member, about two miles toward K-Town, they have an RV park. We use it all the time.
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hornet28
Muskegon Mi.
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Alt 93 with the traffic circle it's off from is where I went through
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mikestock
Vestavia Hills, AL, USA
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Joined: 12/01/2002
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Lantley wrote:mikestock wrote:The first rule in business: Charge too much and you won't make money, charge too little and you won't make money. The best rate to charge is the one that maximizes profit. Unless this campground is full when all others in the area are full he needs to adjust accordingly or learn the hard way.
While there is a sweet spot. "Chick Filet" Capacity does not equate to success. Ruth Chris does not want to set their prices such that they have a line wrapping around the building like a McDonalds.
There are profit margins. Capacity alone does not = profitablity.
You can be just as profitable at 50% capacity as you can with 100% capacity if your rates are set at a profitable level.
Low rates are not necessarily the key to success/profitabilty.
Not to say there are no other variables. There are many, of course. Free gov't money as your competition for workers is hard to predict.
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mowermech
Billings, MT
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Joined: 06/28/2003
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Somebody from Boise is planning a trip to Northwestern MT, so I will boost this up so it is easy to find
CM1, USN (RET)
2010 North Trail 28BHS TT
Daily Driver: '14 Subaru Outback
Toy: '05 Wrangler Unlimited
Towing: 1999 Dodge QC LWB, Cummins, Auto, 4X4
Other toys: 2 Kawasaki Brute Force 750 ATVs.
"When seconds count, help is only minutes away!"
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