If you are thinking of starting a campground, you will need to figure out how much it will cost to run your business.
Many different factors go into this calculation, including the size and location of your campground, the amenities you offer, and the staffing requirements.
This blog post will provide a comprehensive overview of all the costs associated with running a campground. We hope this information will help you make an informed decision about whether or not owning a campground is right for you.
The campground industry is booming, and there has never been a better time to start your own campground business.
According to the National Association of RV Parks and Campgrounds (ARVC), the number of campgrounds in the United States has grown by 27% over the past decade. This trend is expected to continue in the years ahead.
So how much does it cost to run a campground? That depends on a number of factors, but we will outline the main expenses below.
How to Keep Your Campground Running
When you’re looking into how much it costs to run a campground, you need to consider what type of camping you will offer. There are three types of camping: primitive, developed, and luxury.
Primitive campsites typically have little more than a cleared spot for a tent and a fire ring, while developed campsites offer electric and water hookups, restrooms, and showers.
Luxury campsites provide all of the amenities of developed sites and extras like game rooms, pools, and playgrounds.
Developed camping is the most popular type and usually offers the best return on investment. Developed sites typically charge $25-$40 per night, while luxury sites can charge $200 per night.
Primitive camping is the least popular and usually charges $15 or less per night.
Once you’ve decided on the type of camping you’ll offer, it’s time to figure out how much it will cost you to provide it. This includes everything from the cost of land to your employees’ salaries.
The average campground owner spends $60,000 per year on operating costs, but this number can vary greatly depending on the size and amenities of your park.
Some everyday expenses include:
– Land: The land cost will vary depending on the location and size of your campground. You can expect to pay anywhere from $500 to $50,000 per acre.
– Utilities: The cost of electricity, water, and sewer will vary depending on the number of sites you have and the type of hookups you offer. It’s important to remember that you’ll also need to factor in the cost of maintenance and repairs for these utilities.
– Staff: Salaries for your employees will vary depending on their experience and qualifications. You can expect to pay anywhere from $15,000 to $50,000 per year.
– Marketing: Marketing is essential for attracting new guests to your campground. The amount you’ll spend will depend on how aggressively you market your park and the type of marketing you use.
Supplies: You’ll need to purchase supplies like firewood, propane, and ice regularly. This can add up to several thousand dollars per year.
Also read: How to Keep Water from Pooling on Canopy: Tips and Tricks
Campground Startup Costs:
There are several startup costs associated with launching a campground. The most significant expenses include the purchase or lease of land, the construction of campsites and facilities, and the purchase of equipment and supplies.
In general, you can expect to spend anywhere from $50,000 to $500,000 to get your campground up and running.
Campground Operating Costs:
Once your campground is up and running, there are several ongoing costs you will need to budget for. These expenses can range from the mundane (e.g., trash removal) to the more significant (e.g., property taxes).
To give you a better idea of what to expect, we have compiled a list of some friendly campground operating costs below:
– Property taxes: This will vary depending on the location of your campground. In general, you can expect to pay anywhere from $500 to $5000 per year.
– Maintenance and repairs: This will vary depending on the age and condition of your campground’s facilities and equipment. You can expect to budget for around $1000 to $5000 per year.
– Marketing and advertising: This will also vary depending on the size and location of your campground. You can expect to spend around $500 to $2000 per year on marketing and advertising.
– Staffing: The cost of staffing your campground will depend on the number of employees you hire, their salaries, and benefits. In general, you can expect to spend $2000 to $10000 per month on employee costs.
As you can see, there are several expenses associated with running a campground. It is essential to budget for these costs to ensure your business is sustainable.
However, with careful planning and execution, owning and operating a campground can be a lucrative and rewarding business venture.
How Does a Campground Business Works
There are a lot of costs that come with running a campground. The first and most significant cost is the land itself.
It would help if you had a large enough area to accommodate your campers, and you also need space for parking, recreation areas, and support facilities like bathrooms and showers.
The second highest cost is staffing. You need someone to check in campers, manage the grounds, and provide information and assistance.
Other costs include utilities (electricity, water, sewer), marketing and advertising, insurance, repairs and maintenance, and property taxes.
It’s essential to budget for all of these costs when you’re starting a campground business. However, be sure to factor in a healthy profit margin, so you can cover your expenses and make a profit.
Running a campground is not cheap, but it can be a very profitable business if done correctly. By planning and budgeting appropriately, you can make your dream of owning a campground come true.
Pros of owning your own campground:
- You can make your own hours
- You can be your own boss
- The income potential is high
Cons of owning your own campground:
- It can be expensive to start and maintain
- It takes a lot of hard work and dedication
Overall, Owning your campground can have pros and cons, but the pros outweigh the cons. If you’re willing to put in the work and are passionate about camping, owning your campground could be a great career choice for you.
Final Verdict
If you’re thinking of starting your campground, do your research and make sure it’s the right decision for you. Owning a campground can be a lot of work, but it can also be gratifying. Keep in mind the costs involved in running a campground, and make sure you’re prepared for them.
Running a campground can be expensive, but it’s worth it if you love camping and want to share that passion with others. Just remember to plan and budget accordingly. With careful planning, you can make your dream of owning a campground a reality.
