Skatepark things parents want

Most for-profit skateparks understand that a significant part of their money comes from younger kids.  These kids are brought to the park by the parents or the neighbor and these adults need to be pleased in order to get them back.  Finding out what parents looking for in a skatepark isn't rocket science, and if you really want to know, ask them.  Here are a few things that parents expressed to me wanting for their children.

1. Safe and clean-  I talked with one park owner who said he never swept the course.  Parents want a safe clean environment for their kids.  When they come into the park they want to be able to watch their kid, understand that someone else is looking out for their safety, and not sit in a trashed place.  True, kids are tough on things, but this has to be part of what you are offering to the parents, a clean environment.  If you go to kid friendly places like those inflatable bounce houses or Chuck-E-Cheese's you see that the place is clean, orderly, not so comfy (easy to clean is often not comfortable), with people around to offer service.  This is a big cost of their business, keeping the place clean and staffed, but this is why parents go.  The bathrooms are clean too, and when a person comes in to your park, expect the bathrooms to be a selling point too especially if you are selling lots of soda and the people are there for several hours.  Don't cheap-out on maintenance of your bathrooms. Having a chart of cleaning can be a good way of looking at this (freeing up someone on weekends and busy vacation time is a good idea).  Safe and clean also refers to the way the place looks.  With bikes and boards bumping things, you might need to paint more frequently.  Putting plastic lumber up could be a way to keep the wooded areas from fraying.  You can also get sheets of plastic from farmtek.com  that are used to keep horses from destroying their stalls.  If a horse has a hard time kicking through this stuff, a deck or bike will too.  Small strips of this attached to key parts of waiting areas and ramp railings can keep your park looking good.  Sometimes older skaters smoke too.  If they do, don't let them hang in front of your door, designate a place to smoke that isn't the first thing that parents see when they come in.  In addition make sure that you inspect the parking lot frequently.  Sometimes people litter, and your lot can look really crappy quick.  Again, with older skaters, alcohol bottles sometimes are left in your lot as these skaters don't feel like driving around with empties in their car.  Clearly stating "no alcohol" is one deterrent, but in the end, you have to make sure that your lot is clean.
     Safe is also a matter of controlling flow.  If your park is too packed, value for the customer suffers.  Consider limits per session.  Make sure too that if you have people together, big people aren't bulling their way through.  Code of conduct is printed on the back of lift tickets to deal with aggressive skiing and address the idea that maybe everyone isn't as considerate of others as they need to be to prevent injury.  So posting a "code" can help remind people that you care and help you have conversations with some of the riders.  Keeping little kids safe can also mean having a "grom" or little kid session so that parents know that these kids have only little kids around them.  Public parks don't offer this, and it could be a real selling point for you.

2.  Affordable.  Not all parents are pinching pennies, but with multiple kids in a family, it becomes expensive quick to bring the family to the park.  Family membership rates is a start, loyalty punch cards, sibling discounts, car-load discounts on slower days, packages (lesson plus...), etc can help.  Don't give away the park by any means, but look at your pricing compared to other things the people can do.  Baby sitters (sometimes we feel like them don't we), go for $6-10 per hour, movies are $12+ now-a-days, lift tickets for skiing are $50+, entrance to bounce houses are $8+ depending on location.  Given this, ask yourself, how often do you need to get families in, how do you get the most from the kids that come too?  I have written about other ways of generating income other than entrances, so refer to those posts as you look at affordability.  Don't forget that you are looking at about 3% of the population, unlike movies and bounce houses, not every kid will be able or want to come to your park.  But you still are competing for the attention of these kids and their parents with the other things they could be doing.

3. Service.  Parents want the special things that a private park offers like supervision, answering questions via the phone and email, having people there for parties and lessons, having med kits, food, equipment, rental helmets, and the like.  Having a phone protocol is important, this is first face of the business.  Rude, impatient phone or in-person behavior will turn off some parents.  Make a clear effort to answer every email in a timely manner, as well as updating any websites, flyers, and other means of communication.  Having your staff off their own phones is necessary too.  Since you are paying them, they need to be working, not chatting.  Quick responses to things like spills, injuries, calling to follow up with rentals, sending membership letters every month, making the place clean, making things easy for the parents is key to your service.

In the end though why not ask people to fill out a survey?  See what you are doing well and where you need to improve.  Survey Monkey and poll everywhere are free and paper surveys are a fine way of getting feedback from parents as they sit looking for something to do while their kids are playing.

How to start a skatepark with little to no money

So a lot of people are interested in starting a skatepark, but unfortunately they don't have much, if any money.  I have been asked frequently about getting parks running without a substantial investment from the business originator.  Honestly speaking, this is very hard to do.  Imagine if you will, someone who has earned a bit of money in their life, and they are interested in your plan.  When they hear that you won't be adding any funds yourself, they decide it is best to go elsewhere.  Why?  Because you have little to risk in the venture.  Sure you have your time and you have the organization, but in the end, what would keep you from simply walking away because you haven't made any money and bills are piling up at home?  What would the investor in this situation do?  Sound like a good place to put money?  When buying anything, people want assurances that they will get their money back and usually they want more than they put in.  It is the money that you put in that helps them make this decision easier.  If you are asking for no more than you are investing, or even less, then it is something people will consider.  Even banks don't want to loan money to businesses that need it, unless they have the money in the bank to "secure it".  This is why getting a morgage is easier than getting a personal loan, the property backs it up so if a person defaults on the loan, skips town so to speak, the bank still has a sellable house to recoup any loss.  It is the same with a business like a skatepark.

So what is to be done?  The only option that works is the Co-op model.  A co-op is where a group of people with similar interests or needs get together as a group to create buying power.  Here's a real world example: People in a community join together to buy power as a single entity.  When one house buys power it has little wiggle room to get a better rate.  But if a community of 100-500 houses get together, they can get a better rate.  So if your town needs a skatepark, and the town won't build one, then you as a skater/biker will have little influence on your own.  But if you all join together, you can either force the city into action (which is a typical tactic) or you can start one yourselves.

How can a skatepark be a Co-op?  First of all let's make a few assumptions, that there are over 500 skaters in the surrounding community that needs a park, and there is little to no places a person can go to skate. (I will use skater as shorthand for bikers as well, I hope this is ok.)  If each of these skaters were to scrape together $1000, and were willing to join together in a group to get their individual needs met, then a skatepark could gather $500,000 to start a park.  If the park were to be smaller, the investment could be too.  So if you know 10 skaters and they know 10 others, and they all know 5 others, you now have 500 people.  By setting up an account (so people can see their money is safe), you have now gathered enough to start a park.  Of course it will take organizing, but you have the investment, one of the hardest things to get.  Lets say you want this to happen but getting $1,000 is to hard.  What about $20 per week?  Basically if a person were to put away $20 a week, they could have the investment together within a year.  With automatic transfers, this would be easy enough for the average person.

So now that the investment end is dealt with, what would the business look like.  1. it could be totally private with only the investors/members allowed to use it or it could be part private with days of pay for skating, or, it could be all public, with the investors taking their money from the profits in the form a a dividend (when there is enough money in the bank, the extra is given back to the members.  2. It would be run by a board of directors who are voted on by the members.  Once the people agree to start the Co-op and put the money up for it, a board is established (even a temporary one would do at the start), and the board then makes decisions for the park.  3. The membership is responsible, in the end, for keeping the skatepark going, so if it is totally private, the money that the park needs for the next year is paid by the members (if say the operating costs were $100,000 then each member would need to pay $100).  4.  Members are usually required to work at the co-op in some fashion (office, desk, what ever).

Sound like a good idea?  I think it is one of the few ways today to get a park going without really deep pockets.  There are publications about co-ops on the web if you want more information on how to make one.  I'd be willing to help, let me know if you are interested.

More Business Models for Skateparks

Some skateparks try to work like Golds Gym but they often don't go all the way.  Patrons pay a monthly fee, a membership, and skate when they want.  Unfortunately this model is not very successful for skateparks because of the high cost often asked for up front.  With a 12$ session fee versus a $50 monthly fee (I've seen more), kids, teens, adults and their parents are wary about how much they will use this service.  Unlike Golds Gym where anyone with a pulse can sign up, skateparks are in a smaller market to attract people to their service.  Because Golds Gym can get so many people in, and the industry has accepted their 25$ or so cost, they are able to make money with lower monthly premiums.  But in many ways, skateparks can operate like this too, it just takes someone to start.  First a park would have to eliminate sessions, and thus also eliminate $12 fees.  The only way you can get in the gym is pay the monthly fee, with a credit card.  If the market can support this idea, then the skatepark can run like a gym.  But since no parks are doing this now, an owner would take some risk to pull it off. Why?  Basically gym style pricing schemes would offer the skatepark more financial security because it collects money on a monthly recurring basis.  These memberships are tied to credit cards that are automatically charged each month.  So say that 500 members all pay $50 a month to skate for as much as they want, the skatepark is looking at a $25,000 revenue stream per month.  This revenue can be taxed differently too as it is not "entrance" fees which often are taxed like concert tickets.  Within this scenerio, planning becomes easier because revenues are relatively constant.  Added emphasis and efforts are given to keeping the membership going and happy.  I am sure a few parks out there would like to know that this sort of money was coming in monthly.  Even without food or other sales, revenue of $300k per year would be welcome in many parks.  So Golds Gym is not the worst way of looking at your business structure, but you should see what your market can take before you change your current park's finances.

Business models for a skatepark

When considering how to make a business like a skatepark, one must look at other models to see how they run their business, and what a skatepark can use as their model.  The basic model used by many skateparks looks a lot like a roller rink, movie house, or amusement park.  In this model, patrons pay entrance and enjoy their time.  From many of these skatepark operations we see a reliance on entrances as the means of supporting the park.  Due to the fickle nature of skateboarders and often reliant on weather to drive people indoors, this model may not be the best one for every environment.  Unlike movies that change their show every week, skateparks are very static in their offerings.  Often change requires money and time, which is hard to come by sometimes especially if entrances are and have been down.   Similar to this model is the amusement park.  The largest parks rely on people traveling large distances to participate.   6 flags has an enormous budget and spends extensive money on innovation and novelty.  This model requires a lot of funds, advertising, and less change, but is similar in operations as a skatepark.  Both of these businesses have high prices, often have one to two visits per person per year, caters to older children and adults, and uses a captive audience and high food mark ups to make most of their money.  They also have the advantage of not offering a specialized skill sport as their only draw, which makes them more capable of appealing to a larger audience.  The point of these two operations that I feel could be emulated (copied) would be the easy to prepare and relatively profitable food choices, and the layout of amusement parks as a way to offer different experiences in a park within the confines of your building's space.  Food, if possible, needs to be a part of a park that relies on entrances as a means of income.  Offering something for the fans, friends, and parents of the patrons allows you to maximize the market and profit from visitors to your park.  Everyone gets hungry and thirsty but not everyone can ride your ramps.  Providing and monopolizing on every visitor can make your business profitable.  Similarly you can offer a different experience in your park's confines by laying out your park into different skate areas.  You could have a street course, a tricks area, and some miniramps, all typical parts of a skatepark.  But if they are crammed one on top of another, then the idea of "park" is gone.  What if you had areas that were designed for these types of skaters separated with walkways, seating areas, concession carts and the like, to provide "park" to your skatepark.  While some could argue that these areas don't maximize the skating which is what these parks are selling, I would counter that you are actually offering more than just some ramps pushed up against the wall.  You are offering a skate scene, and this is crafted and manipulated by you.  While a movie house is offering the latest flicks, it is also offering a movie experience that differs from your home.  Similarly, an amusement park understands that quality attractions do bring the customers in, and getting them to stay, relax, and have fun requires spaces  where they can relax, meet up, and eat food.  Looking to these aspects of other similar businesses can help you create a skatepark that is interesting, unique, and profitable.  I will blog soon with other examples of business models that could work for different types of skateparks.

Time to plan your year

As we wind our way through January, it is time to get our plan going for the rest of the year.  Too often we are surprised by how quick the time passes and we haven't advertised our camps, haven't planned out our new ramp build, haven't worked on getting the pro tours or events at our parks and then it is too late.  This why it is important for skatepark owners to get a big calender out and start blocking time for events, camps, and construction.  These are all things that need doing now, in January as you look to how you will make the most of this year.  If you can plan your camp now, what it does is edge out the other camps that parents sign their kids up for. You are competing now with a summer that fills quickly for young skateboarders.  By getting your flyers, mailers and ads out now, you can fill your camps quickly and ensure another packed summer.  Many parenting magazines have "camp" issues that come out soon, so having advertisements ready to place in these will also help you take advantage of good advertising.  Camp ads that reach your parent's market are usually well worth the money.  Getting an article together, with photos can also help get some extra free press that helps the magazine with content, and helps you with raising awareness.  We all know that you have ideas and plans for the year, and January is a great time to get them on paper, with time committed to making them happen.  I suggest that as you are looking for ways of filling your calendar with events, look to your staff for suggestions and ideas.  Give them specifics like we need a march weekend event or weekday event and set one or two to plan it and create it.  Offer them ownership of these events and you will soon find, these could be really great things for you and your park.  Don't forget to download the local school calendars too so that you can take advantage of days off with longer hours, or special sessions.

Skatepark Promotions, Holidays, Events

It's that time of year again.  Hopefully the busiest time you will have, with many parks unskatable, kids with free time, its's cold outside and warm inside.  How are you planning on taking advantage of these additional days events.  Here are a few ideas-

1. Promotions, particularly during the holidays don't have to be extreme.  You don't have to slash the price of money winners in order to move product.  Many times, adults are looking for things for their kids.  They don't have a clue about what to offer.  Putting together packages that are attractive, cost conscious and trendy could be a good way of going after this market. Make certain that these promotions are "promoted" by fliers, mailers, email, and website.  As I have said in past articles, put your promotion into a campaign.  Have a contest with your staff to see who can move the most stuff.
     Additionally you can lure in people with a money neutral item in order to sell other things.  Having a "sale" deck could be a way of getting people into the shop to look at your items.  many retailers have this item at a limited quantity say 5-10 items.
     Another promotion type is the "additional 10% for members" or whatever.  Instead of giving 35% off an item, offer 25% plus an additional 10% for members type sale.  While in people's heads they think they are getting 35% off they are really only getting 32.5% off.  So instead of discounting 35% or $35 on $100), you are offering $32.5 on $100.  I would advise too that you make certain your discounts are within your costs, and that you offer reasonable discounts.

2. Events - Having holiday events is tradition in many parks.  Putting on a good event takes time and planning.  Having a person that can MC is vital, as well as a DJ, prizes, and trophies.  Planning out your next year could put a culminating event around this time.  Look to monetize a day that is not your busiest, or try to avoid Saturdays.  Better to put these on a weekday evening, or during holiday break.  Advertise these events too so that kids will know to come watch.

3. Parties - Everyone wants to have a holiday party.  Why not market your park as a place for local shops, groups, and regular customers to have a private park party.  Having space available for them to have cake and other foods is always a good idea too.  Many of the kid oriented places like those inflatable bouncing businesses have several rooms and packages available for birthday parties.  Spending time to create fliers and a plan for these types of event is a very good idea.  Dedicate a staffer to deal with the party and make them feel like the cost is associated with service.  These events could also be scheduled after hours, making down time for the park, a profitable time.  Don't forget to offer a party for members and your staff.  Noting the wonderful dedication and hard work of your staff goes a long way to getting more out of them.

4. Holiday camps - Many parents are looking for things for their kids to do during the days.  Consider hosting a camp during the morning hours like you should be doing in the summer.

Good luck and Happy Holidays!

Promote Skatepark Memberships by adding value, events!

Often we look at membership as either an exclusive way of dealing with people, such as in gym memberships, or as a price break mechanism like in grocery stores.  In the gym membership model, people are necessarily excluded because of spacing issues and the rest are roped into constant fees.  In the more often thought of structure for memberships skateparks offer discounts for members.  Like loyalty cards at the grocery store, there is one cost for members, and another cost for others.  Many of these programs offer rewards, which I have not seen offered by skateparks.  Often the memberships allows the skatepark to send mail, email or other stuff to the members (don't forget the opt out option), and this is often in keeping with other loyalty programs.  But if this is the model, then rewarding people for loyalty should also be in the making.  Tracking visits, purchases, and the like should be a routine system designed into the memberships.  Adding these tracking systems is likely part of most membership software reports and can be monitored through non-digital means with a punch card.  This would be easy enough for visits and could be duplicated with skateshop purchases and justified at the end of the month by an employee relatively quickly.  These incentives give the member a feeling of worth, identity, and "loyalty".  Future purchases might not be made at the park because of personal circumstances, but when someone gets close to a "goal", this could be a decisive issue in a purchase decision.  Similarly, a program like this allows the owner to keep memberships real, constant, and worthwhile.  This topic reflects a desire to make the most of "member services" so that the additional costs of a membership provides real value beyond just cheaper entrance rates.  Having so many benefits that you would need a brochure to list them makes a membership more valuable.

Adding events that are geared toward members really adds value to these memberships as well.  These events can be as simple as member discount day, to more elaborate as member only contests or parties.  While many of us would ask why a business would want to offer such a money losing event such as a free party at the park, I would suggest that there are more than one way to pay for these events such as exclusive product sponsorships, or the like.  None the less, think of a member party as a way of invigorating your membership, promoting membership sales, and creating a good feeling about your park.  A similar way to get members to feel like they matter to your business would be to invite them to an all member meeting.  This meeting could be a way for members to add their ideas on the business, or a way for you to see if a new pricing for memberships could work.  Those of you who read the last posting on memberships would know that if you are in business already, changing park policy could be tricky.  Calling a meeting and seeing what the members could do, or would pay for such a privilege would help in selling the idea, getting feedback, and/or testing the waters.  Don't forget that the way to most people's hearts is through their stomachs, so feed them.

Obviously there are many things that can be done with memberships that can help create good feelings with your members and their parks.  Think of ways to make your memberships special.  And as I have said always, if you have memberships, get your staff on board to selling them every visit and checking them every visit.  Show that theses are important.  Good Luck!

As a note, the spa-usa.org offers an insurance program for skateparks that involves personally insuring individual skaters.  Memberships can offer this as part of their pricing.  More on this at a later date.