DARRELL HESS & ASSOCIATES:  Over 300 parks SOLD!  WHY?
We educate buyers and sellers so they can make an intelligent, informed decision.
After all, we are dealing with a buyers life savings and a sellers retirement.

            

                         Helpful Tool:
Average Expenses of RV Parks 
          and Campgrounds

During our 30+ 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 % 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 28 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 1980s, we wanted current information and, thus, have used in these averages only the statements from 2002 through 2016.

We've included the Average Expenses from the entire 2002 - 2016 database of over 400 parks. This gives you overall averages of parks of all sizes; broken down by Non-Franchise Parks and Franchise Parks.  Franchise parks tend to run a little higher in expenses than non-franchise parks, so we've included the statistics for those two categories of parks.

We break down all the expenses into two simple categories - Cost of Goods and Adjusted Hard Operating Expenses.
  1. Cost of Goods.  This is what the park owner pays (wholesale cost) for items they resell -- such as groceries, gifts, propane, etc.

  2. 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 mortgage payments, depreciation or owner's salary.  For larger parks, grossing over $600K, we included a manager's salary.  We deducted these items in order to determine actual, hard operating expenses.
We have separated parks based on income levels and provided Average Expenses on  each of the following income categories:
 
  • Parks grossing less than $150,000
  • Parks grossing between  $150,000 - $300,000
  • Parks grossing between  $300,000 - $600,000
  • Parks grossing between  $600,000 - $1,000,000
  • Parks grossing between  $1,000,000 - $2,200,000
All 5 of these categories,  along with some park basic information, tax return and a worksheet showing the adjusted income/expenses details for each category are included in the Average Expense Report.
 

Following is an outline of the actual information you will receive:
(but without the % filled in, obviously). 

Average Expenses
as a Percentage of Gross Income
(You will receive a separate chart for all 5 income categories.)

Type of Park:    Non-Franchise Park Franchise Park
Cost of Goods: % %
Adjusted Operating Expenses:
   Accounting/Legal % %
   Advertising % %
   Automobile % %
   Insurance % %
   Office Expense % %
   Payroll (not owner's) % %
   Repairs/Maintenance % %
   Supplies % %
   Taxes % %
   Utilities % %
   Royalties % %
   Other (bank fees, dues,
    licenses, travel, etc)
% %
Total Adjusted Operating Expenses: % %
Total Cost of Goods & 
Operating Expenses:
% %

  The Report also includes basic park information, tax return and a worksheet showing the adjusted income/expenses details for each income category.

The Cost:  $135 Call (828) 452-1535 to order by VISA or MC.
Average Expenses of RV Parks and Campgrounds

 

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