Penny Wise and Dollar Foolish
One of the services we have been busy with in 2020 is research and writing Marketing and Feasibility reports. So Far in 2020, we have completed or are working on no less than twelve reports.
Wise investors know money spent on such reports can save them from making horrible financial decisions and can save millions in investment or cap ex dollars. Investors excited about a property have been met with a “Hard No, or a “Hold Off,” from us once the research is complete.
One of the elements of our research is to look at the competitive set and chart their strengths and weaknesses against our subject property.
While doing my study this week, I came across the perfect example of this blog’s title. “Penny Wise and Pound Foolish.”
Our subject park is in an area where most parks are sub-par in nature. Deferred maintenance, a lack of professional staff, and tired amenities abound
However, there is one glaring exception. Recently, a beautiful new park opened about 20 minutes away from our subject property. It is well amenitized, spacious, and my construction background tells me the all in costs were in the 20M dollar range.
As I studied the area, it took me a little time to find their beautiful website. They have made almost no effort to debut themselves in the digital space. There seems with little to no marketing efforts on their part. When I searched the main keywords they should have been using, they were halfway down Google page one, with no pay per click campaigns or ad words bringing them onto potential guests radar. They were, as I like to say, “All Dressed Up and Going Nowhere.”
For a like kind AOS park-we would have built an appealing Wordpress site and then super charged the back end. We would have spent money to get them noticed on Google, built out the SEO, researched and managed the keywords, and maximized their digital presence. This park, which cost millions to build, seems to be either unwilling or uneducated on how to spend the few dollars it would take to get them noticed and get guests parking in their park. So they are sitting there on a multi-million dollar investment and guests would have to scroll to the bottom of a Google page to find them. I can tell you confidently, that is NOT going to happen.
Americans like instant gratification. We want quick, convenient and easy. We are not going to go to the bottom of Google to find what we want. If it does not smack us in the face, we move on.
When buying, building, or running your park-do not forget to pay attention to the pennies that will eventually make you dollars. A few well placed marketing dollars can turn into bottom line revenue and happy guests in your park.