What Makes Campgrounds Great Investments
Campgrounds for Sale!
Investing in campgrounds for sale is becoming popular and profitable for experienced investors. Even for those who are not involved in the outdoors themselves, looking for campgrounds for sale is becoming an important part of diversifying an investment portfolio. There are many types of franchises to invest in. RV parks and camping resorts for sale are just a couple that come to mind.
So why have campgrounds for sale become so popular lately? Well, data shows that outdoor activities are growing in popularity among millennials and younger generations. Specifically outdoor activities that cater toward their hyper-connected world. Recent surveys have shown that one of the top three most important things to campers was access to free WiFi. That being said, here are some things to consider before investing in a campground franchise.
Understand the Demand, the Market, and the Seasons: Lots of camping franchises are seasonal. Moab, Utah, for example, is a booming area in the late spring, summer, and early fall. However, if you drive through Moab in the winter, it is almost like a ghost town. There just isn’t much to do in Moab that caters to the Utah winter months. When investing in an outdoor franchise, make sure you understand the market. The location of your campsite will be very important, depending on the type of customer you are trying to attract. Looking for “glampers” (glamour campers)? Keep the location close to town, furnish it with bathrooms, running water, and WiFi. Prices? Expensive. If you are catering more to the RV customer, you are generally looking at an older crowd. What about the hardcore campers? Well, they are probably out in the wilderness and don’t want or need your campsite. Know who your market is. Make sure you are ready to meet the demands of that market and be prepared for seasonal surges.
Take Note of Competition:
As we mentioned, the outdoor franchise market is blowing up fast. There are a lot of people entering the market. Some are smart. Some have lots of money and . . . well, they are kind of just seeing what sticks. Do some research on the location you want to invest in. Are there a large number of other competitors? Do they cater to the same clients or different clients? Is there a market gap you can take advantage of. If you are looking to invest in already popular destinations (around Yellowstone for example) be ready to spend a lot of money and time marketing and differentiating yourself from the competition. One thing that is nice about this business though is that, because the real attraction is the outdoors, there is no need to go over the top with what you provide. A nice campsite with free WiFi and running water (including bathrooms) will usually do. Then, let nature do the rest. Because of this, it is a good idea to know the area and give your guests “insider” tips and recommendations about what they can go do. Likely, the reviews that guests leave about your campsite will be heavily influenced by how their overall trip was, not just the time they spent at the campsite.
Look Into Franchise Restrictions: There are often restrictions on how franchise campsites can be run. These restrictions are usually to keep the reputation of the franchise high, however, they can sometimes put a cramp on what you were planning on doing. If there are too many franchise restrictions, you might want to consider purchasing land and not worrying about a franchise name. Build up your own name and reputation in an area. This can be just as effective and often more profitable because you do not have to pay any franchise fees. Do your homework here. Make sure you fully understand any franchise restrictions before investing. Also, remember that many franchises are willing to make exceptions if you can provide a good reason. Give the franchise operators or owners a call and present your plan of action. Who knows, you might just get an exception that helps your franchise excel.
In any case, investing in the outdoors is a great place to be right now. Give us a call for some of the hottest investment campgrounds for sale now.