The Economics of Everyday Things

112. Campgrounds

October 27, 2025

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  • Private campgrounds, often run by 'mom and pops,' operate as entrepreneurial businesses requiring significant upfront investment, with a 100-site facility potentially costing $2.5 million for infrastructure alone. 
  • Public campgrounds are heavily subsidized by tax dollars, often recovering only 50-75% of operating costs, while private campgrounds rely on market forces and higher nightly rates to achieve profitability, aiming for around a 30% profit margin. 
  • Franchise affiliation, such as with Kampgrounds of America (KOA), provides brand awareness and marketing benefits to private owners, but requires paying royalties (8% of registration revenue) and marketing fees (2% of registration revenue). 

Segments

Mark Lemoine’s Career Pivot
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(00:01:07)
  • Key Takeaway: Mark Lemoine transitioned from a 24-year career in politics and lobbying to owning a campground following a ‘midlife reset button’ moment.
  • Summary: Lemoine left lobbying in retail and healthcare to pursue his lifelong desire to own a campground. He and his wife sold significant assets to purchase a campground within six months of deciding on the career change. The initial feeling was a mix of accomplishment and terror regarding the massive commitment.
Campground Industry Overview
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(00:02:43)
  • Key Takeaway: The US has about 27,000 campgrounds with over 2 million campsites, offering accommodations ranging from basic tenting to luxury RV sites and unique structures like treehouses.
  • Summary: Camping accommodations are diverse, including economical tents, high-end RVs, and deluxe cabins. Roughly half of all US campgrounds are publicly owned by federal or state agencies, which typically offer fewer amenities than private operations. Public parks often rely on tax dollars as their modest reservation fees usually do not cover 100% of operational costs.
Building vs. Buying Campgrounds
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(00:05:17)
  • Key Takeaway: Building a new 100-site campground requires an estimated $15,000 to $25,000 per site for infrastructure (water, sewer, electric), excluding land costs.
  • Summary: Starting from scratch involves significant capital expenditure, potentially reaching $2.5 million for infrastructure for a mid-sized facility, plus land acquisition. New builds are subject to extensive state regulation, requiring licenses for operation, sales tax, and potentially water permits. Buying an established 100-site campground in a good location can cost between $4 million and $6 million.
KOA Franchise Benefits and Costs
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(00:07:19)
  • Key Takeaway: Joining a franchise like KOA provides immediate brand awareness, but franchisees must pay 8% in royalties and an additional 2% for marketing based on registration revenue.
  • Summary: Mark Lemoine purchased his KOA campground in 2016 for $1.6 million, benefiting from the established brand recognition. Franchisees retain ownership of the land and buildings, with the partnership focused on operations. KOA franchises collectively generated about $500 million in registration fees in 2023, averaging nearly $1 million per location.
Campground Operations and Revenue
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(00:09:32)
  • Key Takeaway: Private campgrounds face seasonal demand swings, high utility costs, and must balance site rental income (85% of revenue for Lemoine’s park) with non-royalty generating income streams like the general store.
  • Summary: Lemoine’s 130-site park hosts 15,000 guests annually, with the more expensive, amenity-rich sites booking first. Nightly rates vary based on hookups, ranging from about $40 for tents to over $50 for RV sites, with premium sites reaching up to $200. The general store is crucial as its revenue is not subject to KOA royalties, with firewood being the top-selling item.
Seasonal Business Challenges and Costs
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(00:16:21)
  • Key Takeaway: Seasonal businesses like campgrounds must generate enough revenue during the short peak season (Memorial Day to Labor Day) to cover year-round expenses, including massive utility bills.
  • Summary: Lemoine’s Michigan campground is only open six months, requiring careful financial planning to cover offseason bills. Labor costs include hiring seasonal workers and ‘work campers’ who exchange labor for site fees. Peak electric bills can reach $15,000 in a single month due to numerous RVs running air conditioners.
Profit Goals and Owner Fulfillment
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(00:18:20)
  • Key Takeaway: A successful campground owner aims for a 30% profit margin, allowing for reinvestment or owner compensation, while finding deep personal satisfaction in providing a community space.
  • Summary: Lemoine targets keeping about $450,000 from $1.5 million in annual revenue as profit. He finds the work cathartic compared to politics, deriving joy from seeing families enjoy the campground environment. He humorously notes that running the park requires him to act as the president, police chief, and judge for his small community.