Hi Gum,
I’m not going to put up more details at this point, just collecting food for thought before I make some changes which I need to tell my clients about in person before I do it here. : )
However, you asked me a really good question! I am currently 23% lower than the other boarding option in our area, which is a similar facility. My contemplated price increase, which is a 9.5% increase, will still put us 13% under that nearby barn.
Geez, doing the math makes the situation pretty clear, doesn’t it? :no:
Both barns are operationally full (meaning we have a stall from time to time as someone moves in or out, but pretty much 100% occupancy) and are similar. There is a good demand for boarding in our area, so we really don’t compete with each other, just offer two nice boarding options in the same area. A number of nearby stables have closed or gone private recently as well.
If you want to drive for an extra half-hour each way, you can certainly pay less. I always think we’ve offered fair value, and I (obviously) agonize about raising prices.
This all ties in with many posts I’re read here about boarding being a falsely-priced business, and I agree. Many boarding operations are doing business on legacy farms that don’t have (giant) mortgages, and/or are an adjunct to farming, ranching, training, or other businesses. Many barns are operated, like mine, as a second business with some sort of ‘real job’ supporting them.
After doing this for a decade now, I’d say all those things play into making a lot of boarding priced to break even at best. That was my goal, because I will have land appreciation to eventually offset operating losses.
But what boarders don’t realize is if their barn owner is subsidizing the business, struggling, or looking at land appreciation to eventually make it worthwhile… that doesn’t bode well for a long-term place to keep your horse!
The business has been fun most of the time- buying a stable i loved since I was a kid, and fixing up up nicely, has been satisfying. But it’s wearing, and discouraging when I started out with a lame business plan, that of breaking even. Other circumstances in my life have changed, and I need to re-evaluate everything.
At night when I walk through the barns and pet the noses that volunteer for a word and a scratch, or when I peek over my computer in my home office and see people riding and having fun in the big arena… it’s all worth it.
When someone flushes paper towels down the toilet-again- and I’m at work at that ‘real job’ and have to pay the plumber $100 to come fix it… it’s not worth it.
Just love the resource of COTH- I learn so much from you all!