Posted on 14/06/2021 01:53
It's a while since I used a CL, and really I just searched for one around Alnwick as I needed a water topup, and thought a cheap CL would be the ideal place to do that. Except I can't find a single one under £15.
That's almost campsite fee. I must have missed the news, do CL's just charge what they like now and are there any other options to simply get fresh water fill?
Posted on 14/06/2021 21:58
GaryFin, Townfoot Farm does overnight parking with services for £12pn
https://www.searchforsites.co.uk/markerMobile.php?id=42203
Posted on 14/06/2021 09:07 by DavidKlyneYou might need to look at it from the CL owners point of view. Even if a £15 a night CL was open and full every night of the year I have calculated the income would only be around £27000 a year. Deduct from that the costs of electricity (if provided) deduct from that the cost of emptying waste, probably not on mains sewerage, deduct from that costs of site maintenance and insurance I wonder how much of that £27000 is actually left. The reality is of course that the CL won't be full every night of the year, probably lucky if its full for half the year so the economics of running a CL is not quite the goldmine you seem to think it is? Many CL's are trying to add value by having hardstandings and serviced pitches but that means nightly fees on average are around £20 a night.
David
Posted on 15/06/2021 09:19
Your economics are correct of course; it is stating the obvious; but do you really think that the owners of CLs are thinking along these lines? No one in their right mind is ever going to base a business model on a caravan site with only 5 pitches. The economics will never stack up and to produce an income even close to one from which a person can make a living, the nightly fee would have to be very considerably higher than £15. The CL owners that I have known in my working life, saw the facility as a bit of bunce. Most are based on other businesses from which the main income is derived.
Moreover, I can't see anywhere where the OP suggests that CLs are a "goldmine".
CLs are one of those business models where the trade off between the economics and the market is at odds. To make even a modest profit, the price has to be higher than many, especially those, like me, who are not keen on pitching in an overgrown field with a pot holed access track, would be willing to pay.
2 people like this
Posted on 15/06/2021 09:36
I spoke yesterday to a gentleman who has been a member for many year, is nearing retirement and would like to welcome Members into his 1 acre Orchard near the South Wales Coast and set up a CL.
He thought that running a CL might be a nice income boost to his pension.
Having looked at his location and had a bit of a chat, we concluded that his set-up fees, just to provide 'the basics' would be between £5K and £10K, and possibly £15K if he was to offer EHU.
Now that's a fair chunk of investment, with a limite level of return (as without hardstandings his site would not be accessible during wet/winter months.
So, with a 6 month season, and a maximum of 5 vans on site and an occupancy level of 30-40% in the first few years (if all goes to plan) what do you think he should charge??
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Posted on 15/06/2021 09:36 by CholseyGrangeI spoke yesterday to a gentleman who has been a member for many year, is nearing retirement and would like to welcome Members into his 1 acre Orchard near the South Wales Coast and set up a CL.
He thought that running a CL might be a nice income boost to his pension.
Having looked at his location and had a bit of a chat, we concluded that his set-up fees, just to provide 'the basics' would be between £5K and £10K, and possibly £15K if he was to offer EHU.
Now that's a fair chunk of investment, with a limite level of return (as without hardstandings his site would not be accessible during wet/winter months.
So, with a 6 month season, and a maximum of 5 vans on site and an occupancy level of 30-40% in the first few years (if all goes to plan) what do you think he should charge??
Posted on 15/06/2021 09:36 by CholseyGrangeI spoke yesterday to a gentleman who has been a member for many year, is nearing retirement and would like to welcome Members into his 1 acre Orchard near the South Wales Coast and set up a CL.
He thought that running a CL might be a nice income boost to his pension.
Having looked at his location and had a bit of a chat, we concluded that his set-up fees, just to provide 'the basics' would be between £5K and £10K, and possibly £15K if he was to offer EHU.
Now that's a fair chunk of investment, with a limite level of return (as without hardstandings his site would not be accessible during wet/winter months.
So, with a 6 month season, and a maximum of 5 vans on site and an occupancy level of 30-40% in the first few years (if all goes to plan) what do you think he should charge??
Posted on 15/06/2021 10:12
You make a very valid point, however, ANY business has set up fees as they usually have to pay to rent suitable premises, the solicitor's fees to set up the lease, plus the business rates, then the cost of any fixtures and fitments they may need or any stock they require. A CL may be a good idea, but no business is without its downside!
Posted on 15/06/2021 10:15
....but most arent set up from scratch, as Gray suggests....thr primary income is from the business on site....farm, garden centre, large property with paddock etc...
if drainage, water, electric is already at the facility (and just needs extending etc) then costs are kept low...
maintaining a reasonably well drained level field, when you already have the kit/manpower, isnt difficult or expensive.
in that case, just six months of five vans at £15 is £75 a night, £525 a week, £2100 a month.....total over 6 months £12,600.
now thats a nice bit of bunce if the site is low (time/cost) maintenance.
Posted on 15/06/2021 09:36 by CholseyGrangeI spoke yesterday to a gentleman who has been a member for many year, is nearing retirement and would like to welcome Members into his 1 acre Orchard near the South Wales Coast and set up a CL.
He thought that running a CL might be a nice income boost to his pension.
Having looked at his location and had a bit of a chat, we concluded that his set-up fees, just to provide 'the basics' would be between £5K and £10K, and possibly £15K if he was to offer EHU.
Now that's a fair chunk of investment, with a limite level of return (as without hardstandings his site would not be accessible during wet/winter months.
So, with a 6 month season, and a maximum of 5 vans on site and an occupancy level of 30-40% in the first few years (if all goes to plan) what do you think he should charge??
GaryFin
Motorhomer