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thePOD: Acquisition Options 4th FEBRUARY 2008
There are a number of ways PODs can be ‘operated’ on campsites and we have listed the ones that we think may prove suitable taking into consideration a range of circumstances and the cyclical nature of the business.
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Outright Purchase. Probably the simplest and best way to fund a POD project would be using your own resources. For a relatively modest investment the returns will come back year after year.
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Leasing / Contract Hire. We have arranged with a specialist finance company, CABOT ASSET FINANCE as a provider of ‘pay as you go’ funding options for our customers. This may prove useful if your project calls for multiple PODs and you want to manage financing over a longer period.
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Hire. We are going to make a limited number of PODs available on a standard hire contract basis. We are looking at charging £450+VAT per quarter on a minimum 12 months agreement, but with the benefit of an option to buy. The option to hire is likely to be restricted to sites of strategic value e.g. areas where we are looking to establish a ‘POD network’ or a ‘missing link’ on a long distance path. This option may best suit sites with all year or long season opening.
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Pitch Rental. We are looking at the prospects of developing a new business providing ‘POD holidays’ where we pay a ground rental to site owners for a pitch and customer access to site facilities. Such arrangements will require a good deal of mutual co-operation but could be successful if managed properly.
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Private Owners / Pitch Rental. This could prove quite popular as it provides an opportunity for private owners to personalise their POD ‘getaway’. This option would be based on the same principles established for static caravans and lodges. Similar terms and conditions could be applied. We would suggest that the initial purchase cost plus a realistic commission would be paid by individuals (or groups!) to the site owner. While ground rent would provide good annual income in exchange for the pitch and the use of the site facilities. This may be of particular interest to recreationally motivated clubs and institutions.
We would remind potential purchasers that every POD sale makes a contribution towards supporting the cost of our advertising campaign and efforts to promote ‘thePOD’ as a brand. Through www.thepod.info people wishing to rent PODs can find details and booking information for every site either with PODs or planning to have them. With our operating on a focused national level this effort should prove very beneficial in generating business.
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