Wednesday, January 6, 2010

Public park cuts business?

I was reading a blog posting and threads on a BMX site recently that was complaining about a local skatepark trying to convince the parks and rec department to charge user fees at the local public park. Much of the argument described how the skatepark was trying to protect its turf, that was said to be encroached on by a public park. As I read down I was struck by the PR problem this situation presents, as well as how this park owner isn't going to "win" by getting the park to charge admission.

The quandary presented to many business owners, not to mention indoor skateparks, is competition for market. If you look at the corner of a busy intersection you might find 4 fast food restaurants, gas stations, or whatever. Why? Wouldn't just one do? What if the owner complained publicly about unfair zoning, permit granting, or other such issues to try and hold on to their monopoly of the area? Would there be some gain and some loss? Sure. The issue isn't that far removed from public versus private skateparks. What is to be gained by trying to keep your market share as it is through monopolization of the market?

The issue of public skateparks is one of equality. If the public pays to provide free fields to play on, free basketball courts and tennis courts, shouldn't it also be required to provide free places to skate or ride? They should. So fighting these places is not a good idea. Many people will get the wrong impression of the business that fights public parks. They will develop a negative attitude about that establishment, spread the word to their friends and brothers, and this will be a costly blow to a fragile establishment.

So the question becomes, does a free tennis court or a free ice skating area cut into the business of indoor rinks and pavilions? The answer is no. In both these cases a rink offers more than just skating, as do tennis pavilions. Private skateparks offer more too. While the fee and service model is well accepted for the ice and tennis businesses it is not so much for the indoor or private skatepark. In order to address these issues the indoor park owner needs to think about ways their service is worth paying for.

Here are a few things to consider when confronting what to do about a loss of business from a free park. 1. If you are losing business to a free park just because it is free you have more things to worry about in your market. If the kids and adults can't afford to come to your park, then you have priced yourself out of business or the economy doesn't allow for the luxury spending needed to keep a place of your size working. But don't start fluctuating your price, find where you need to be priced to make your budget and meet the needs of the public. 2. A free park is an opportunity for more business not less. What is better, to buy an ad in the newspaper, or distribute flyers and 1/2 off pass coupons at the local skatepark? Where do you want to hype up your new ramp you just built? Where do you want to talk to some parents who you don't recognize at your park about your summer camps? Where do you send your sponsored skaters to skate when they aren't at your park with a pocket full of your stickers and some other cheap schwag?

How about a few ways to make a public park a win-win? Skate comp at the public park sponsored by you and other skate shops in the area; A multi-location skate comp with the finals held at your park! Working with the parks department to put on skate camps over the summer can also help you especially with a pricing scheme that is win-win and good PR for you. When you see that the kids like the outdoor park more than indoor, go find out why. Interview some kids (give them something for the interview like grip tape or food) about what they like about the outdoor park, then use the input to redesign your layout.

In the end you have to remember that you are a dynamic service business, and the parks department is not. People come to your park because of the security, the ramps, the atmosphere, and the events. If you have the best service, people will buy into this. Provide better service, be dynamic, change! A public skatepark is not going to rebuild their park anytime soon. You should. What do people want to skate or ride? New stuff. Make your park the best, then redo it. Make great competitions, provide lessons, rent your place for parties. Start a dj night with local kids spinning disks on a night that is usually slow. Have an adult league where they don't have to worry about kids! Have a BMX night or three. They are an underserved market that really want a place to ride. They are good money so don't forget about getting them a spot in your calendar. All the things I wrote here are things that you can do almost overnight and make an impact on your business. Don't forget about what service it is you provide and market yourself to regain anything you have lost.

Make the most of what you have and change things up!

2 comments:

  1. sorry to comment on an old post, but I think in addition to all of the valid points you make is the fact that skateboarders are a unique customer base and I use "customer" loosely because most skaters would rather risk getting arrested for trespassing than pay for a safe haven location. That doesn't mean there aren't some who will pay; but part of your business model must be built upon what kind of skater you are appealing to. Knowing what market segment you are targeting will make or break your business and this is especially true here.

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  2. Tim is correct in saying there are many out there in the skateboarding world that won't pay for a park's service and so knowing your base and core market is essential. In part this is due to economics, but more so the culture that has developed over the years when skating street was the only option. Creating a place that is convenient, dynamic, respected, and affordable (at least part of the time) is key to keeping those who are willing to support a park. These are some of issues I will continue to cover in this blog.

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