Business Plan part 4

Pricing Strategy and Target Sales
The Dryad Group, Inc. will offer the following services, which are competitively priced within the industry for the range of on-site amenities offered:
  • 25 RV Site hook-ups, fully equipped at $40.00 per night (Off season) or $50 per night (Peak season),
  • 100 Tent sites
    at $ 25.00 per night (Off season) or $30 per night (Peak season), and
  • 12 geodesic dome “cabins” at $80 per night (Off season) or $90 per night (Peak
    season)
  • A small increase of $5 per night at all levels for weekend visits.
Campgrounds are a seasonal business, with modest increases in demand in April and May, a sharp rise in June, and a peak in demand in July and August. September sees a steady decline as the season winds down. August is an especially high camping month, accounting for 33 per cent of campground use. The average
length of stay is three to four days. Dryad’s Realm Redwood Retreat will take advantage of peak tourist seasons. The company will also offer special promotional rates to targeted naturist clubs in the Redwood Empire region.
The industry has previously been dominated by over 1,900 state and federally owned campsites. Due to funding
cutbacks in the State and National Park system, private campgrounds are on the rise and tend to offer better facilities. During the peak camping season in July and August both public and private campsites are booked to
full capacity in an industry where demand outstrips capacity. However, since we are marketing to a special niche, we do not anticipate any competition from other campgrounds, and believe we will operate either at capacity or very close to it. During summer peak months it is expected that both RV and tent sites will have a gradual curve in revenues from April and decline in late October.
During the winter months it is conservatively estimated that three RV long-term residents will be booked.Annual sales are anticipated to increase by 10% per year for the first ten RV pads, however due to the limit of tent sites sales these annual revenues are not anticipated to increase until the company can expand to develop all 100 tent sites.Although RV pads are limited to ten initially, and “cabins” to 4, it is estimated that the company will secure a 10% increase in revenue per year, based upon long-term bookings.All sales will require a 50% non-refundable deposit, which is industry standard, with the balance due upon arrival. The company will focus on customer service and will offer non-transferable camping coupons for their next visit for people who have any complaints about their camping experience.
Viability and Long Range Plans
The Dryad Group, Inc. will succeed based upon the company’s prime location in the Redwoods of Northern California, regional tourism draws, competitive pricing, and the fact that we are marketing to a growing niche market.