RV Park Consultant Discusses Best Practices & Aspects Of Experience At National ARVC Convention In Fort Worth, Texas
Designing and planning the structure of building or upgrading a campground is a big undertaking for anyone. The aspect of a steadying hand throughout the process is the key to guaranteeing success. Robn Beard of Ron Beard Consulting is one of those true fixers. With experience in real estate, financing and construction, he understands the ins and outs of what works. Beard sat down with The Buzz at the National ARVC Convention in Fort Worth to discuss focus, planning and getting the idea right.
The Buzz: What does it take to create a great campground? What is the initial thought?
Ron Beard: I think it starts with everyone [understanding that they] can be in the same market with the same market potential and the same. The key though is that the idea needs to be a reflection of how you would like to operate the facility and the financial goals that you have for that investment. My financial goals in the same market could be wildly different from yours. Your road map in five years [could be] wildly different in the same market and the same location as a guy who has run a park there for 35 years. Really I see that a lot when there are acquisitions. A lot of what has allowed this to change since I have started doing this 20-something years ago is that the market has come along. What is obvious when I meet with a lot of clients now is that they haven’t always kept up with the market. These group of people…owners…who are at conventions like ARVC…are definitely several steps ahead of the curve because they go to things…they hear things…they know things…but even a lot of those guys who have been coming for twenty-something years don’t always understand what it takes them to get from point A to point B. So they are thinking they have capital available or they’re thinking they’ll never have enough capital available to put in that next element. [Thereby] they’ll never achieve where they thought they were going to be in year 5 when they were in year one. So a lot of what I do is help people sort, from a global perspective. Here’s the land plan…here’s the architecture…here’s the business plan. And why you are doing any of this is? Because you are in business to make a profit…and it is a financial investment. Trust me…the new will wear off…the fun will wear off…if you are losing money…if you’re not making any money…if your kids hate it…if your banker hates it…or you can’t get rid of it…you take a loss. It is no different from a gas station or a shoe store on one level. It is a business…it has a big real estate component to it…and you have to keep your eye on the ball to what get what you want within the market. But it is how you get there and execute that plan. That’s how I help.
The Buzz: People expect more now. How does that affect the economics of building and expansion?
RB: It is interesting. I don’t think people so much expect more for facilities…but I think as newer things come online and they see lots more bells and whistles and user friendly guest experiences, it becomes highly perceived value. [From there, they] begin to have a skewed look of “Well gee…I am not going to settle for the old swimming in the lake any more…this guys has a chlorinated pool or a splash pad…or a water park!” Or “This guy has massages and wine tastings” and more adult friendly stuff.
The Buzz: Is that a completely different business model?
RB: There are all sort of niches in the market that you can either tap into or turn your back on. And it isn’t necessarily a bad thing to say kids…or 55 and older….or say it is only by the month and not by the night. You can cater to guys in the fracking industry. Their pipes are full. The price of oil goes down. The parks are empty.
The Buzz: But it also relates to the fact that people look for convenience or bulk or both in terms of services surrounding or within a park.
RB: Sure…every now and then in an extended stay park somebody is going to need a coke at midnight but to sell a coke at midnight or after 6pm will never make financial sense to keep the office open if you are running it more like apartments. The trap to avoid is running it like a hotel. But you need to keep on the ball of “Here are the magnets and the products that people need …yada…yada…yada” but also “Here is the revenue that makes sense to me.”
The Buzz: Even if it means more expense…
RB: [Even if it means] more expense. But you can tap into that. But if you tap into it, you can’t let it [falter] because you are in business to make a profit. If you can keep your eye on the ball and look at your numbers, you can quickly figure out that you can’t operate it with more than you’re taking in.
The Buzz: And the numbers don’t lie.
RB: And the numbers don’t lie. So [you need to] know where you’re headed. The analogy I use is “Follow the setting sun to the West Coast or go to AAA and get a road map.” You don’t have to stick to that plan. You can peel off and go to the Painted Desert and be back on I-10. You can go a little further. You can go to Mexico and come back. You just have to have a sense where [you’re going] versus the guys that don’t keep in mind where they are headed…where their business is headed. If you’re not careful, [you find your] three year plan turned out to be a 10 year plan. Things can look rosy and you can be a happy man and retire. But it is not going to last 10 years.
The Buzz: When people come to you with a new park, what do you like to see?
RB: To start with, some people come to me with nothing because it is built from scratch. They’ve never done this before so they are counting on guys like me to say “What do I need? What does it look like? What’s the business model?” Usually they have a vision…they have an idea. They have an expectation. They’ve imagined it as a lifestyle. It is an investment. But sometimes it’s hands off.
The Buzz: So it needs to be more broadly viewed in terms of planning?
RB: It can be both but where most people go wrong…they don’t let…they don’t see their park as the golden goose that can get them somewhere. If they are not careful, they can get mired under the golden goose’s foot. It is like “I can’t see the goose…the goose is here somewhere…” And it is just real easy to get caught up in that. So part of how I can help…guys like me…is that I can help you go “Look….this is the shadow…it is not the abyss…it is not the edge of the Grand Canyon…it is a shadow. You are thinking everybody’s going to leave. They won’t. Try this. You’ll get a little taste of it. If you just raise your rates 2 dollars a day…five dollars a day for the existing business year…you can’t go nuts…that can put an extra $100,000 [in your pocket] if you have 20,000 camping nights. Maybe you can figure out a way to average 5 bucks a night on those camper nights. Figure it out. No one is going to walk away over 5 bucks. If they do, let them walk away because there are plenty of us who won’t. You don’t need everybody. But all you have to say is “That is not an abyss…it is a shadow” And you will do just fine. You will live through the shadow. It is OK.
Tim Wassberg
A graduate of New York University's Tisch School Of The Arts with degrees in Film/TV Production & Film Criticism, Tim has written for magazines such as Moviemaker, Moving Pictures, Conde Nast Traveler UK and Casino Player. He enjoys traveling and distinct craft beers among other things.
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