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 16/03/2019 15:54

Posted on 16/03/2019 15:54

Sounds like a good location for us too M1. I could be wrong, but I seem to recall there’s not that many CL’s in Dorset with the facilities we require. Pretty sure we’ve never visited Sherborne or Dorchester either 👍

Longtimecaravanner replied on 16/03/2019 18:52

Posted on 15/03/2019 23:09 by mummypig1

Thanks for asking about our new CL it will be called Cherry Cottage. 

Currently the CL is a flat grass pony paddock, with views of the surrounding farm land. Ground work for septic tank etc and electric being installed in next few weeks hopefully!  We are looking to provide 2 hard standing pitches and 4 grass (3 in rotation).  We know the 5 van rule! 

We are putting EHU in despite having to have a new electric supply installed. Whilst we are happy to survive on a solar panel we know many of our guests won’t be.   We will have a toilet, laundry room, info hut, bin store, usual waste, water etc.  

We are in Hardy’s beautiful Dorset almost midway between Sherborne and Dorchester, with easy access. We are very lucky with a regular bus service passing the gate between both towns and linking with the rail network. There are lots of great walks including a footpath to the village pub which serves good food and is dog friendly.  

Interested to know what you think. 

Posted on 16/03/2019 18:52

We have friends in Thornford so it sounds as if you might be very well placed for us when we visit them.

nelliethehooker replied on 16/03/2019 19:25

Posted on 16/03/2019 08:55 by mummypig1

Tinwheeler and TATD thank you for your positive comments, it’s great to know we are on the right track. I will keep you posted as we progress towards opening and are in a position to take bookings and will look forward to hopefully welcoming you to our CL in the future. 

Dogs on leads are going to be welcome to bring their well behaved owners and little people with them.  Too often we find a lovely CL only to discover we can’t visit because either no dogs or adults only.  In my opinion the market for CL customers is already restricted by members only why restrict it further if we have no reason to. 

To put the thread back on track regarding pricing, we are yet to confirm the exact price, but it will be based on our cost to operate, supply and demand, local competition and ‘ceiling price’ for a CL etc. 

Posted on 16/03/2019 19:25

All sounds good, mp. Definitely one for use to consider when you are up and running. I'll be keeping my eyes open for the name Cherry Cottage in the list of new CLs. Hope that it's soon and that all goes well with it's setting up, and that you get many visits when it does.

mummypig1 replied on 16/03/2019 21:11

Posted on 16/03/2019 21:11

LTC - Thornford is probably about 5 miles from us, so we would be ideally located for you.  

Thank you to everyone for your support and encouragement, its really appreciated.  

We are hoping to open early/mid summer. 

CholseyGrange replied on 18/03/2019 08:37

Posted on 18/03/2019 08:37

As a fellow CL owner, I fully endorse Ian's observations.  What I would add is that there has been a paradigm shift in costs borne, not only by CLs but all caravan and motorhome sites.

10 years ago, electric heating of vans was rare.  Vans were heated by on-board gas, purchased by the van owner.   

Today, the vast majority of modern vans are heated by electricity, paid for by the site owner.  This has vastly increased the costs of all sites and hence the rise in pitch fee that are so often complained about.  

Also, more councils are charging CLs for business rates, rubbish collection etc. etc. than they were.

I think you can expect an increasing number of CLs - particularly new ones - to install electric meters.

Tinwheeler replied on 18/03/2019 09:35

Posted on 18/03/2019 09:35

“10 years ago, electric heating of vans was rare. Vans were heated by on-board gas, purchased by the van owner.”

I believe electric heating was as common 10 years ago as it is today. Even 20 years ago it was still common. That is not to deny costs have increased but electric heating is not a recent innovation and my first van with electric heating was built in 1992.

KjellNN replied on 18/03/2019 10:13

Posted on 18/03/2019 10:13

Yes, when we bought our previous van in 1998, all the vans we looked at came with both electric and gas heating.

Our first van, back in 1973, had no heating at all, but once EHUs became more available I fitted a hook up point to the van and we used a small electric fan heater.  That must have been back in the late 70s.

Tinwheeler replied on 18/03/2019 10:19

Posted on 18/03/2019 10:19

Quite so, KJ. Site costs may well have risen in recent years but it cannot be blamed on electric heating becoming available in the last 10 years. That appears to be searching for a scapegoat to hang the increased cost label on. What has happened in recent years is that caravanning has become much more popular. 

Takethedogalong replied on 18/03/2019 10:34

Posted on 18/03/2019 10:34

We still own a 1984 example of dual heating. Both water and space heating. But it doesn’t have a microwave, an electric hob or lots of other fancy electronic gadgets.😀

Electrical consumption has rocketed on most sites, without a doubt. The genie is out of the bottle, and there’s no going back if anyone wanted to now. It’s down to individual preference how power needs and usage are managed. Personally, metering wouldn’t be an issue for us, we have long got used to using metered cottages down the years, although these are becoming more of a rarity. We have a few friends who own CLs, it’s becoming a major topic of conversation about how much power some visitors consume. And these are not folks who rely on CL for major income, just as an add on to other main businesses. Folks are turning up with huge outfits, huge awnings, extra fridges, two TVs, electric blankets, space heaters, etc..... We have had vans next to us blow 16amps day after day. Personally, I would rather pay £12 per night and metered electric rather than £20 all in. I know who would be winning. 

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