Ah, the sweet allure of something free. It's like spotting a campsite with a spectacular view and no neighbors in sight—sounds perfect, right? But just like that seemingly idyllic campsite can harbor a family of raccoons ready to raid your cooler, "free" reservation systems for your campground can come with some unwelcome surprises.
I recently sat down with a prospective customer who was giddy with excitement over a new reservation system they found. "It's free!" they exclaimed, their eyes sparkling like a kid discovering s'mores for the first time. The platform charged the guests a reservation fee, which sounded like a win-win. But, as I always say, if it sounds too good to be true, it probably involves math.
Let’s do a little number crunching here. Imagine Susie’s Campground, a charming place with 100 sites and a 50% occupancy rate, charging $50 a night. Over the year, that’s a tidy sum of $912,000. Not bad, right? But hold on to your marshmallows—what if Susie used her own reservation system and tacked on a $3.50 fee herself? Suddenly, her revenue jumps to $976,000. That extra $64,000 could buy a lot of firewood!
Beyond the immediate boost in revenue, there's an even juicier tidbit: the value of Susie's campground itself. When it comes time to sell, the selling price is often based on revenue multipliers. With the added income from her reservation fee, Susie's campground could fetch an additional $320,000. That's enough to turn any potential buyer’s head—and maybe even lure a few more raccoons to the negotiation table.
So, while free reservation systems might seem appealing at first glance, they’re kind of like those raccoon-infested campsites—best avoided if you want to keep your sanity and your snacks intact.
At Campground Accounting, we understand that there's more to life than just business. We're here to help you breathe new life into your campground ownership, explore options to grow your business, and press play on your bigger ideas. Donna’s progressive perspective on accounting ensures that you never miss an opportunity, experience, or understanding.
Don’t let the word “free” lead you into a trap. Let us help you navigate these decisions and maximize your campground investment without it taking the most out of you.
I'm D Bau at Campground Accounting. Curious how we can help? Check us out and subscribe below for more insights. Thanks for reading – now go enjoy that campfire. 🌟
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Donna Bordeaux, CPA with Campground Accounting
Creativity and CPAs don’t generally go together. Most people think of CPAs as nerdy accountants who can’t talk with people. Well, it’s time to break that stereotype. Lively, friendly, and knowledgeable can be a part of your relationship with your CPA, as demonstrated by Donna and Chad Bordeaux. They have over 50 years of combined experience as entrepreneurial CPAs. They’ve owned businesses and helped business owners exceed their wildest dreams. They have been able to help businesses earn many times more profit than the average business in the same industry and are passionate about helping industries that help families build great memories.