Good Morning:
>> What I'm not understanding is the business model that says keep the overnight price high enough to keep out undesirable people, even if it keeps out desirable folks while the park is 75% empty. But, since this is the business of the park owner and you've stated that you sometimes disagree with their management philosophy, we probably won't arrive at the answer in this discussion.
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As mentioned earlier, I don't know what would cause that park to either keep, raise, or lower their pricing. It may have nothing whatsoever to do with undesirables. I also wrote that they may have given it a lot of thought or perhaps haven't considered it at all. From what I know of that park -- would imagine the former. The owner is on site, very bright, has other business ventures, and very much involved in park operations.
The following summary of thoughts would only be why "I" would or would not lower prices. Not knowing their situation in detail, can only surmise:
o? Lowering prices may bring in more undesirables -- discussed in detail here. You say it keeps out desirables as well, but perhaps not. Some may come because of the lower price, but others may decide if the price is that low, something must be wrong. Also, if someone comes away from that park with a bad experience because of the actions of an undesirable, they may not return in the future and may post on a forum such this telling other good RVers to stay away. What's that marketing rule about one happy or unhappy customer tells at least 5 others of their experience?
o? Your random sampling of occupancy is a "1" night observance. A number of parks I am in on a Monday are even less than 25% full -- some more like 100% empty other than monthlies. Parks that I have been able to observe on the freeway that cater to the overnighter do better as the week goes on.
o? Perhaps the parks in that area have worked this out together -- and they have agreed to not start a price war.
o? Most business model guides advise against lowering prices. As an alternative, they suggest increasing value. In this case, what would it take to get those in the parking lot into the park at the current hopefully well thought out pricing.
Edit ( 5/11/06): Boomtown, Reno has a freebee lot just above their park. It is advertised as the overflow lot but many stay there even tho the park is only partially full. Periodically, BT places a free pass for a one night stay in the RV park on the windshield of each RV in the lot. The idea is to not only have those in the lot "observe" with envy those in the park, but to invite them in to experience the amenities they offer.
o Business model guides also suggest that it is easy to lower prices -- but much harder to increase prices. If the park lowers prices to get at those in the parking lot, how will those returning react to the higher pricing they can hopefully charge in the future.
However, as you suggest, we will probably not find the answer in this discussion . . .?