How Our Park Models Make You Money
Return on Investment
The key element to any good business decision is Return on Investment. How long will it take to get back my initial investment? How much return will there be? These are questions any good business owner works through when deciding which opportunities are wise. Our experts are available to sit down with you and discuss your ideas, and help you to build a profitable parkmodel rental program at your campground.
Campground Return on Investment Calculator
Some of the numbers on the calculator may need adjusted up or down, based on your rates, and the area that you are located. For instance a campground located in Florida, would have a much longer rental season than a campground in the northeast. We cased these numbers on the averages in the northeast.
| Park Model with Loft | Tent | RV | Cabin |
| Cost | $43,000 | $3,000 | $3,000 | $60,000 |
| Yearly Occupancy | 70% | 65% | 70% | 70% |
| # of Nights Rented | 256 | 117 | 126 | 189 |
| Average Nightly Revenue | $150 | $30 | $30 | $200 |
| Total Yearly Revenue | $38,400 | $3,510 | $3,780 | $37,800 |
| Total Yearly Gross Profit | $32,640 | $2,984 | $3,213 | $32,130 |
| Lifetime Revenue | $307,200 | $28,080 | $30,240 | $302,400 |
| Lifetime Gross Profit | $261,120 | $23,868 | $25,704 | $257,040 |
| # of Models | 10 | 10 | 10 | 10 |
| Total Lifetime Revenue | $3,072,000 | $280,800 | $302,400 | $3,024,000 |
| GP$- Cost/Cost | 5.07 | 6.96 | 7.57 | 3.28 |
| times 100% | 100% | 100% | 100% | 100% |
| Percent of ROI | 507% | 696% | 757% | 328% |
| Gross Profit After Invesment | $218,120 | $20,868 | $22,704 | $197,040 |
Improving CAMP GROUND Profits and Growing Sales
The #1 problem facing most CAMP GROUND owners is "how to increase their profits."
Industry Experts believe too many CAMP GROUND owners focus on the wrong part of their Profit and Loss/Income Statements- the bottom part. These hard working entrepreneurs spend too much time slashing fat and they end up cutting too much and start tearing away at muscle and bone. The real focus for the wise CAMP GROUND owners is on the top part- revenue creation.
"It's all about Yield Management" says Thom Finn, Certified Business Coach and Advisor. "What's always fascinated me about CAMP GROUND is unlike other businesses they can easily add capacity. Assume they have already maxed out every available spot; they have a unique opportunity to make each plot more profitable by adding a PARK MODEL
Mike McCarter from LanChester Park Models agrees: "A single site can generate $5,000 a year; where as a PARK MODEL on the same sight can bring in $30,000. PARK MODELS from LanChester Trailer immediately give a better overall impression and raise all the rates because of it now gives the campground a more upscale appearance."
Cabins Are Too Expensive
Let's cut to the chase and talk numbers.
LanChester PARK MODELS on average run $30,000-40,000.
The average nightly revenue for a LanChester PARK MODEL is $150.00
On average, Lan Chester PARK MODELS are rented out 180 nights a year.
Therefore, the average yearly income from a LanChester PARK MODELS is $27,000.
So, the average length of payback on investment to revenue is a little over one full camping season.
Your LanChester PARK MODEL will pay for itself in just over one season, and then be generating $27,000 each year after than.
Other Reasons We Make You Money
Keep in mind also the ease at which a LanChester Park Model goes into place. Any time you bring in a construction crew to do work, or build buildings you run into a lot of added cost, and headaches that you really don't need or want:
Our park models are built in the controlled environment of the factory where efficiency is a priority each step of the way.
- We don't have delays from the weather
- We don't get stuck waiting for materials
- We don't have the added expenses of travel to and from the job site.
- We don't run over on a construction budget. The price you are quoted is the price you pay.
- Park Models are delivered and ready to use the same day
When you bring a construction crew:
- Work can be slowed or stopped based on the weather creating long delays.
- There are many sub contractors working in and around each other, and things get off schedule early and often.
- There are a lot of scraps and trash that get left behind, leaving you to clean things up, or pay someone else to.
- Chances are your builder isn't next door to your building location, and you will pay for the transportation for the crew to and from the job site every day.
- Contractors have a budget, and overages can be expected, costs can run thousands more than what you would have expected
Call us today at 610-593-4500 and schedule your no obligation consultation, where we will sit down with you and discuss the right program for you. We will then work to design a package that fits your needs and gets you on the track to greater returns and bigger profits.