Renting glamping units rather than buying allows bigger and more instant results.
This week’s tip considers the idea of renting glamping pods rather than buying them outright for your glampsite venture. Several benefits of this will enable you to build your business faster and with more flexibility to create the income you want.
Tip 3. Consider renting rather than buying your glamping pods
Buying your accommodation outright can be an unnecessary expense at the start of your business when there are several other things that you will need to spend money on (those little luxuries we mentioned in the last blog for example). Renting glamping pods could be a more economically sound option for your business, freeing up capital at the beginning of your venture by paying monthly rental costs gradually as your business grows. This would also enable your business to develop faster because you would have more money at the start to invest in vital marketing.
You may want 5-10 units to make your business run efficiently, which could amount to £50-100K upfront. Not an ideal amount for a start-up venture to swallow. But only installing 2 or 3 pods isn’t going to create the capital you need to run a site and provide you with an income.
Let’s get the numbers to talk and show how this business model works;
Let’s look at one example; You could rent a Mini MOSSpod over 5 years* for approximately £250+vat a month (compared with paying £8,950+vat to buy it out right). If you charged a mid-range rent of £80 per night and let it out for a modest 120 nights in a year (only 1/3 occupancy potential), you would be taking £9,600, which would give you a net profit of £6,600 (after rent). That’s just for one pod… imagine 10 pods…..and don’t forget glamping prices are ranging up to £150 per night, with little additions making it more lucrative.
Glamping pods are now more popular than ever for winter holidays, which means the modest 120 nights predicted occupancy can easily turn into much more of the year, upping that net profit to nearer £25K (after rent). You can imagine the number crunching possibilities.
For information on rental options on MOSS’s Micro and Mini range drop us a line. Let’s get a conversation going to start the launch of your business. 01173 790505.
*MOSS’ Mini and Micro glamping pods can be rented out for a minimum hire term of 18 months and maximum of 5 years and from £250 + vat per month.
Next week’s blog will reveal Tip 4 – Comfort not Canvas – all-year-round accommodation maximises profit – British winter holidays are in! Cosy fires, marshmallows, snug blankets and crisp winter walks. Offer the cosiest of holidays in the countryside.