The camping sector is a revenue generator like few others. When an investor contacts us interested in buying one, the first thing we ask is whether he knows this sector. Why this question? Because, in a very high percentage, when a campsite goes on sale it is not for economic reasons, but for other reasons beyond the income generated. And this fact has a significant impact on the price.
What is the value of my camping? How do I calculate the ROI? What are the aspects to keep in mind when selling or buying a campsite? What steps should I follow so the sale does not affect the management of the campsite itself?
Here are five keys to keep in mind to be successful in the sale.
1. Internal reasoning. The property of the camping must carry out an internal reasoning work. A job that should be directed to facilitate the next point or key to keep in mind.
It is necessary to have a clear reason of the sale, as well as the process that is we want to follow. It is necessary to collect all the information of the establishment, from the constitution writings, the environmental license, the activity license, the tourist register in the corresponding administration, the accounting closures of the last years, contracts with third parties and all that can be cause of concern on the part of the buyer.
Large investors see in the campsite a very good business opportunity. An opportunity that involves the investment with important amounts. Amounts that will not be placed on the table if they have a slightest doubt.
That is why we must have all the documentation ready. We will gain time and convey a sense of seriousness and legality on the part of the seller.
As important as documentation work is the internal reasoning of the amount for which we are willing to sell our campsite. The sales reasons can greatly influence the time of negotiation, although it is not necessary they come to light, at least, totally.
To this point, it is very important to keep this reflection internal. In all sales process, confidentiality is very important. Maintaining the process within a closed group will allow us not to alert workers or customers or our suppliers. Let’s not let people talk about with free guesswork. This can only play against us.
2. Rate the camping. You must put a sale price. It is necessary to have a starting price from which the negotiations will begin. This departure price can be part of the negotiation strategy, but we will always have an amount in mind. An amount to be approached by both parties, if you really want to achieve the same objective.
We should rely this important assessment on a company specialized in campsite quotes. This allows us to be more effective when defending a price and providing a technical base above a sentimental one.
What does it have to offer us a mediating company?
• Experience and knowledge. Make sure the company has a tour of the purchase of campsites. They have knowledge of the process to follow and that they know the sector well.
• Seriousness and professionalism. The deal must be direct with the owner and always under the terms stated in the contract. The fact that an owner wants to sell can be due to several causes that should not influence the economic development of the same housing.
• Discretion. You must work in complete discretion without publicizing the process to third parties and measuring at all times the type of information that we have. It is very important not to create any type of rumor that can lead to unnecessary alarmism. Neither its workers, nor their competence, nor their clients must be aware of this process.
• Efficiency. Time is very valuable. Just close visits with those buyers really interested and with a firm start offer. False buyers and serious proposals should be leaked, facilitating transactions and ensuring that the process reaches a good reach and understanding between the parties.
At the time of carrying out the valuation study, we will have to consider aspects such as the geographical location of the campsite and its number of plots. Free units and mobile or semi-mobile accommodations. The opening dates. The state of its facilities. The typology of clients. Latest account statements. Maintenance expenses. Volume of workers. Economic loads. Possible regulatory affections, such as cost laws, water issues, protected areas and the current market price must be considered.
With the study of all these points we will obtain a valuation of the campsite that does not have to be the starting price. On many occasions this valuation does not coincide with the price the property had in mind. It is from here where we must raise and prepare the sale.
3. Prepare the sale. At this point, property and the mediator company must go hand in hand at all times. The mediating party must defend the seller part and not the buyer one.
You must devise a sales strategy. From the valuation study we will have to put in value the strong points of the camping over those that are not so much. We will have to be clear from what amount we are willing to teach the letters to start a negotiation.
At the same time, we will have to maintain a management of the campsite in an impeccable and future-oriented way without having in mind the sales process.
A purchase can materialize at any time, but selling your campsite usually involves months of consultations, delays and administrative negotiations. Therefore, it is important to maintain your camping without problems during the process.
We will need to prepare the visit of the buyer by clicking on those details that can make the balance change. This visit will always be on a sunny day, clear and with good temperature. It would be important that the campsite is open and environmentally friendly to capture the heat of the day to day.
4. Negotiation. Making known that a campsite is for sale can be a problematic step. We cannot put on the network photos or real names. We cannot offer the camping to the first ones that stops by. Not everything is what it seems. You must be very careful.
We will use our contacts. Trusted investors that we know they want to invest and who can face the economic and technical purchase.
We should listen to more than one option of sale. We must manage all the options at the time. From here we can get information, that well treated and analyzed, can give us different positions and ideas from those we had from the beginning.
This negotiation process will be long. Both parties want to be sure of the other. Positions should approach a final amount. At this point we will have to stipulate the conditions and the transfer process. Finally, write up a contract and proceed to its signature.
5. Follow-up of the sale. It is important to offer the buyer part the option of following and accompanying the sale. The beginnings of managing a campsite are not easy. We will need a lot of information, especially technical, when it comes to managing the day to day.
Surely if the buyer is a large investment group, it will not require this help, but it is customary, even in large groups, that the property and the buyer manage the camping together for a while
The camping has remained a popular holiday form due to its traditional virtues, while the industry has expanded its attractiveness to a wider range of demographic groups. Attracting more and more young adults and wealthier groups (through trends like glamor), as well as retirees and families, this is a market with much to offer to the owners of investing companies.
Follow the steps above, with the help of an efficient and reliable business agent, and there is no reason why you should not sell your business at a good price.
This article has been written by the tourism and property sales team of Proaction Tourism Sl. If you liked it and want to keep up-to-date with our articles, sign up for our blog.