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AVERAGE EXPENSES OF RV PARKS/CAMPGROUNDS
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In our 27+ years in the campground industry, we've
had access to financial information on hundreds of RV
parks. We've computerized this information in a confidential
manner and determined average expenses as a percentage of gross
revenue.
For example, what do RV parks spend on average for advertising,
insurance, payroll, repair/maintenance, etc.? Included in this analysis are overnight parks, destination resorts,
franchised parks and independent parks. These parks were scattered
over many states and, we believe, are an excellent benchmark from which to
compare your subject park.
Although we have hundreds of campground financial statements dating back
to the early 1980's, we wanted current information and, thus, have used
in these averages only the statements from 2000 forward.
We break down all the expenses into two simple categories - Cost of
Goods and Operating Expenses.
- Cost of Goods. This is what the
park owner pays (wholesale cost) for items they resell -- such as
groceries, gifts, propane, etc.
- Adjusted Hard Operating Expenses. We
have adjusted the reported expenses by taking out any one-time
expenses to more accurately reflect a normal year's budget.
Also, these expenses do not include any interest, mortgage
payments, depreciation or owner's salary. We deducted these
items in order to determine actual, hard operating expenses.
Following is an outline of the actual information
you will receive:
(but without the numbers filled in, obviously).
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AVERAGE
EXPENSES
(as a Percentage of Gross Income)
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| COST
OF GOODS |
% |
|
|
| ADJUSTED
OPERATING EXPENSES |
|
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Accounting/Legal |
% |
|
Advertising |
% |
|
Automobile |
% |
|
Insurance |
% |
|
Office Expense |
% |
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Payroll (not owner's) |
% |
|
Repairs/Maintenance |
% |
|
Supplies |
% |
|
Taxes |
% |
|
Utilities (phone, elec, water...) |
% |
Other (bank fees, travel,
royalties due, licenses, etc) |
% |
|
|
| TOTAL
ADJUSTED OPERATING EXPENSES |
% |
|
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| TOTAL
COST OF GOODS & OPERATING EXPENSES |
% |
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The above is a comparison of expenses for seasonal versus
year-round parks.
As you might imagine, once a park exceeds $400,000 in gross
income,
some of the expense category percentages begin to change.
For example, the insurance expense percentage generally
declines,
while the payroll expense percentage generally increases.
Following is a brief breakdown of the major expense categories
for large parks.
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PARKS GROSSING
OVER $400,000
Cost of Goods
=
% Adj. Operating
Expenses =
% Total
= %
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| MAJOR
EXPENSE CATEGORIES: |
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Advertising |
% |
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Insurance |
% |
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Payroll (no owner's) |
% |
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Repair/Maintenance |
% |
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Utilities |
% |
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Cost:
$35 Call (828) 452-1535 to order with VISA or
MasterCard.
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