Rope park business plan and payback
A rope park is simple and profitable
We want to talk about the advantages of the “Rope Park” or zip line business and how to correctly calculate its expenses and payback, based on our experience.
Almost all of Europe is built up with rope parks, and the popularity of this direction attracts more and more serious lovers of active recreation. There are about three such parks in Kraków alone! In the CIS countries, this sports trend recently began to gain momentum. That is why this business idea is original, and the issue of building such a park is now very relevant. If you have decided to organize your interesting and profitable business, then this article is for you.
Park construction plan:
Construction site of a rope park
In order to correctly analyze the place for the construction of parks, you need to approach this issue from different angles. To begin with, we will conduct an ecological analysis of the territory, namely, we will determine the level of health of the trees. Environmental specialists will help us in this task, who will indicate the category of suitability of wood. There are six of them. Category 1 and 2 are suitable for the construction of parks.
The next stage of selecting a place for the attraction will be an analysis of the surrounding area and competitors. It is also necessary to take into account the human flow. If it is less than a hundred people per day, then it is unprofitable to build a park in such a place. The last, but important point is the design of additional structures and access roads to the territory of the park. By this we mean the entrance to the park, which should be as convenient and visible as possible for the customer, as well as the paths, which should be designed in such a way that it is comfortable to move around the territory and at the same time there are no traffic jams.
Target audience
As for the target audience, we have no right to make a mistake in this matter! Many carelessly believe that teenagers show the greatest interest in this type of attraction. But, as practice shows, only 12% of teenagers are customers of the park, while 80% of children come, and 8% of adults.
For example, it is a little different in Europe. The main visitors to the parks are adults, 15% are children under 10 years old, 25% are teenagers, 50% are adults from 20 to 50 years old, and 10% are people over 50 years old. Therefore, as interest in this business grows, the issue requires constant monitoring and adaptation, especially the mentality of the population.
Park planning
A win-win idea in terms of optimal planning of the park will be the decision to include 2-3 lanes for children. If you want to learn more about it, you can read about the construction of children’s rope parks here.
The best option for a business would be a family-type rope park (1 lane for very young children up to 7 years old, 2 lanes for children, 2 lanes for teenagers and adults + a possible zip-line track). This mixed type of attraction will also be attractive for quests and corporate recreation.
Documentation for the park
How to resolve a legal issue? Our company provides all technical certificates and works according to international quality standards, so the authorities will not have any questions about safety and environmental friendliness.
Financial calculations:
Optimal park:
4 routes of 5 stages + zipline
- Capacity – 4 routes * 15 customers * 3 (20 minutes each – stage) = 180 customers per hour.
- The price of the route is $4
- The price of the trolley is $2
- Average check – 2 routes + 0.25 trolley (this is 25% of those who bought a ticket to the rope park will buy a trolley)
Park construction cost*:
4 routes of 5 stages + trolls
The price of stage 1 (service without materials) is $930
The price of the zipline is $1,900
Cost of materials – $4,580
Total: $930 * 20 stages + $1900 + 4580 = $25,080
* Prices are approximate, as each rope park is individual.
Costs of the rope park:
Using the example of a resort town and a park with 4 routes of 5 stages + trolls, we calculated the monthly cost of rent, amortization of the park, advertising and personnel.
Land rent = $1,800 (don’t count if it’s your land)
So, for such a park, 5 safety instructors are needed, the salary is from $300 (it also depends on the region)
Total 5 * 300 = $1500
2 cashiers 2*300 = 600 (it is possible to install an electronic accounting system for ticket sales and visitors, for more accurate information)
Manager – $350
Security (if necessary) = $200
Park depreciation – $200
Total costs: from $4,050
We have not included desirable items such as visitor insurance and advertising in our approximate cost estimate. To attract a large number of visitors to the park, you will need billboards, banners, leaflets and a website. If you decide to use our services and order the construction of a rope park from the company “Rope Park”, you will receive absolutely free development of an Internet site for your park.
Payback and profit:
So, we have come to the last and most important point. Below we have calculated the average statistical income from an average-sized park:
Out of 500 potential customers per day, 20% will buy the service
i.e. 500 customers * 20% = 100 customers
The average check is $8
Rainy days – 5 days
Revenue = 100 customers * $8 * 25 days = $20,000 per month
Net profit per month (seasonal) = 20,000 – 4,050 = 15,950
Return on investment: 25,800 / 15,950 = 1,617 (about 2 months)
As you can see, the payback of this business, even under the worst schedules, is less than half a year. Therefore, the time to act is now. If you are interested in opening your own rope park, we will draw up a business plan for the park with all calculations and solve all important and current issues. Call us, we will be happy to help you!
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