Running a glamping business is as much about creating a unique and memorable experience for our guests as it is about ensuring the financial sustainability of our operations.
One of the interesting experiments we’ve conducted at Ferncrest is the implementation of the honor system in our Camp Store.
Today, I’ll share with you where and how we use this system, and provide an analysis of its impact on our bottom line.
The Honor System in Practice
At Ferncrest, our Camp Store offers a variety of items that our guests might need or want during their stay. From snacks and beverages to essential toiletries and camping gear, the store is stocked to ensure convenience. It also sells an ever-growing plethora of Ferncrest branded gear and souvenirs (shirts, hats, frisbees etc).
All of this can be purchased without an employee in sight.
Here are a few of the reasons we decided to go with the honor system and self-checkout at our store:
- Convenience: Guests can access the store at any time without the need for staff to be present.
- Trust Building: Demonstrating trust in our guests helps build a positive and respectful community atmosphere.
- Operational Efficiency: Reducing the need for constant staff supervision allows us to allocate our resources more effectively.
How It Works
We use a self-checkout process with an iPad that utilizes Square for the backend and an app called KioskBuddy for the frontend.
KioskBuddy is the customer interface that allows guests to ring up their purchases and pay by credit card. By only allowing credit card payments, we avoid issues related to cash management.
Many people ask us about cameras and whether or not we are watching everyone bring up their purchases. The answer is yes, we do have cameras in the store, but the honor system implies that we trust people. We will only review footage if there is a reason to suspect something is missing.
One of the main motivations for the honor system is not just to bestow trust onto our guests, although that is nice; it is purely financial. A small operation like Ferncrest, which currently has 21 glamping sites, would not be able to offer the camp store for enough hours of the day without the honor system.
Financial Analysis
To put this into perspective, Ferncrest typically has around 40 to 50 guests on-site on a full day.
Keeping a camp store open from morning to night would require an employee at a cost of $15 an hour. This would result in a labor cost of at least $150 (plus payroll taxes and benefits) for 10 hours of operation, which still might not cover late-night or early-morning needs.
On less busy days, or even busy days with low sales, labor costs would consume all the profit the camp store generates.
This is a fundamental retail challenge that I encountered in my previous career growing a retail brand and managing retail stores—you can sell a lot of products but make no money!
We didn’t want that to happen at Ferncrest.
On weekends, we regularly have days where we sell over $500 of merchandise. With 75 to 80% profit margins, this makes our camp store wildly successful, contributing positively to our bottom line instead of detracting from it.
So, when people ask about the honor system, I can easily illustrate that although theft or shrinkage probably (ahem, definitely) happens, it would have to be so large to equate to the labor costs alone.
Do I worry about someone taking a bag of chips? No.
Does it suck when that happens? Yes.
But I hope whoever steals from a small family business’s camp store sleeps well at night 🙂
Overall, the honor system has had a net positive impact on our bottom line. The increase in overall sales and reduction in staffing costs far outweigh the occasional unrecorded sale. It fosters a sense of trust and community, enhances the guest experience, and significantly boosts our financial performance.
Thank you for being part of our journey and for your ongoing support.
Until next week, happy glamping!
Brian & Joanna Linton
