CL Pricing - just a conspiracy theory

BirchHillFarmCL replied on 12/03/2019 10:44

Posted on 12/03/2019 10:44

There have been numerous comments on this forum suggesting that the CAMC is encouraging CLs to increase their prices.  In our 16 years' experience as CL Owners, we have never been given pricing guidance by the Club.

The reality is that the Club has relatively little contact with CLs:

  • The CL Department at CAMC Head Office has very few staff.  It issues a newsletter to CLs a couple of times each year - this does not include pricing guidance, but typically includes reminders to submit electricity safety certificates, insurance details and occupancy figures.
  • Every two years, we are sent an extract of our previous entry in the Sites Directory and are asked to confirm or update those details.  This does not contain any pricing guidance either.
  • We have an annual inspection by an unpaid volunteer Club member who is appointed as our 'CL Adviser'.  The reality is that this is an unannounced 'surprise visit' - in recent years, this has been on a Sunday morning whilst we have been away at church.  Rather than getting any meaningful 'advice' from our from CL Adviser, we tend to have a card in the letterbox to say that he has been and gone.
  • CL Owners who happen to be a Club members (not always the case), receive the annual Sites Directory and Handbook, plus the monthly Club magazine - just like other Club members.

That's all the contact we get from the Club in the course of a year, unless we win a prize, or someone puts in a complaint.

That then begs the question of 'How do CL Owners set their prices?'. 

  • In our case, we learned a hard lesson a couple of years ago - we had been voted 'Best Small Site' in the UK by Practical Caravan Magazine readers for the second year running.  We were swamped with bookings and having to turn lots of people away, so we decided to increase our all-in pitch fee by £2.  The following year, bookings plumetted, but we were nevertheless voted 'Best Small Site' for a third year.
  • This tells us that no matter how good our CL is, the pitch-fee is critical to CL guests.  CAMC Members who pay £40K - £50K for a caravan and suitable towcar will choose to go elsewhere for the sake of £2.  This is human nature - a similar mentality to driving to the next petrol station to save a penny per litre on fuel.
  • This is somewhat frustrating, when we see a commercial site 2 miles from us, alongside an 'A' Road, with tightly-packed vans, which charges double our pitch-fee, whereas we offer peace and tranquility, views across 9 counties and just 5 vans spread over 2 acres - all for for only £14 per night, including EHU (and no charge to use our Wi-Fi).
  • In effect, by staying as a CL, our prices are constrained by the market forces, i.e. the prices of other CLs.  CL Owners can view prices of other CLs on the CAMC website or Sites Directory, and then make up their own minds regarding pitch fees.

If we want to make more money from our land, I am firmly of the opinion that we would need to leave the CL network.  We choose to remain because of the nice guests we get coming back year after year.   Club members are 'easy company' - they tend to know what to expect from a CL and are usually grateful for what they find.

BTW - we are caravanners ourselves and use both CLs and Club sites.

Ian Kelly

01691 622951
Holiday@BirchHill.co.uk

Birch Hill, The Cross, Ellesmere, Shropshire, SY12 0LP
www.BirchHill.co.uk
CL Number 1280 in the 2019/20 CAMC Sites Directory

Birch Hill Farm – relax at our award-winning hideaway in the beautiful lake-lands of Shropshire - exclusively for members of the Caravan and Motorhome Club

Freddy55 replied on 12/03/2019 19:20

Posted on 12/03/2019 19:15 by nelliethehooker

You could well be right. It would be nice to have a comment from the owner of a new CL.

Posted on 12/03/2019 19:20

I think if I were setting up a CL, I would probably ask for advice on pricing. To me, it’s not a great leap from asking for pricing advice, to being ‘directed’. Easy to misconstrue. Just my thoughts...

BirchHillFarmCL replied on 12/03/2019 19:57

Posted on 12/03/2019 19:57

The person from the Club who does the initial visit to a prospective CL is called a 'Field Officer'.  Just like CL Advisers, these are also unpaid volunteer Club members.

As they are not Club employees or CL Owners, I suspect that the only advice that they could usefully give would be to check the CAMC website for the pitch-fees of neighbouring CLs - this is what a prospective CL Owner should be doing anyway - simply as part of routine research and business planning.

The guidance on setting-up a new CL can be found here and does not contain advice about fees - it even says "Choose your own pricing"
https://www.caravanclub.co.uk/setting-up-a-certificated-location/

Ian

cyberyacht replied on 13/03/2019 07:50

Posted on 13/03/2019 07:50

I would think any potential CL owner would look at what is being charged in the surrounding area, just as when selling a car you browse the adverts to see what others are selling the same vehicle for. ( Yes, I know there's Parkers!)

DavidKlyne replied on 13/03/2019 09:25

Posted on 13/03/2019 09:25

Ian

Thank you for your very informative and detailed post. You seem to have busted the myth that the CMC are encouraging CL's to enhance their pricing. However the rumour seems to persist that CL owners are somehow being encouraged to charge higher fees so are we to assume that perhaps chance conversations between CL users and owners when price is mentioned, as having gone up, that the CMC are being blamed rather than the CL owner having to justify putting his prices up? The interesting thing is that there is often a parallel discussion on the C&CC forum on exactly the same issue! 

David

mummypig1 replied on 14/03/2019 23:12

Posted on 14/03/2019 23:12

We are just about to build our dream CL, and have had an initial field officer visit I can confirm there was no guidance on pricing.   

Takethedogalong replied on 15/03/2019 10:45

Posted on 15/03/2019 10:45

Good luck Mummypig. Care to tell us more? You have some big users of CLs hanging on this thread, and free advertising is always good. Location would be useful if nothing else at this stage.😁

Oneputt replied on 15/03/2019 11:20

Posted on 15/03/2019 11:20

We often use what I would imagine to be one of the most popular, successful CLs in Norfolk.  As far as I can remember the price has only risen by £2/night in the last 6 years.  

near Malvern Hills Club Campsite Member photo by Andrew Cole

Book a late escape

There's still availability at many popular UK Club campsites - find your perfect pitch today for a last minute trip!

Book now
Woman sitting in camping chair by Wastwater in the Lake District with her two dogs and picnic blanket

Follow us on Facebook

Follow the Caravan and Motorhome Club via our official Facebook page for latest news, holiday ideas, events, activities and special offers.

Photo of Wast Water, Lake District by Sue Peace
Visit Facebook