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Yesterday I learned that our small town would be a host city for an event known as RAGBRAI (the Register's Annual Bike Ride Across Iowa). Basically 15,000 bicyclists and support teams spend a week riding their bikes across the state.

That means 15,000 people will be staying the night in our town (total population about 8,200). While this will be a major boon to our business, there is A LOT of side action that can be had, and the local officials are more than willing to look the other way for a day. Obviously letting my daughter feel important with a lemonade stand will happen, but other than that I'm feeling a bit torn between wanting to cash in as much as possible, and not being a price gouging douche.

There are obviously not enough hotel rooms or camp sites in the area, so bikers pitch tents wherever they can, often for a price. I'm considering opening up my back yard for $8 per tent (with water access, electrical access, and WIFI), Selling bottled water for $1, and fruit for $1.

Other things I've seen others in the past do include the $1 "cold shower". Basically a garden hose hooked up to a shower head with a curtain for privacy. Not sure if I want to do that one.

Any other ideas you guy's might have?

You could do the cold shower with a "Donations Welcome" jar.

Well..... Price gouging is you preemptively spike your prices higher to a point that is beyond normal or fair.

dunno about tenting ground and electric/wifi access

but at minimum dont sell drinks or food at above retail normal market price.

also dont you need like a license or permit to sell drinks and food or is that hot food license im thinking of.

Laundry services might be desired. Though, then you'd have strangers' dirty laundry in your machine and drier, but beats having people showering in your yard as a way to make some scratch.

I'd say you could probably tell the difference between 'profit' and 'price gouging' with a long hard look in the mirror. That's the only guy you can't really lie to.

I don't know what the correct price (is it per tent or per tent and per day) is or even how it works with ad hoc camping sites. I also don't know how much other places want or how big your backyard is but people can end up abusing your offer. It'a social norms vs market norms thing and once people pay for something they can feel entitled to the benefits (market norms), whatever they may be. Also your expectations and the expectations of you customers might be different.

If you really want to do this look around and see what actual camp sites offer and find something that works for you. I would price it a bit higher than official sites (you don't have the build it infrastructure they have, and so on) and think about why the campsites have certain rules. Maybe there's some regulation about that kind of stuff? Who knows what you end up paying for and how much work you'll have after they are gone.

And the first question I would ask myself before even opening my backyard to who knows how many people would be: How's the bathroom situation? … and I'm not talking about showers here.

Jacking up the gas prices minutes after 9-11 occurred was price gouging. It sounds like you're offering a reasonable set of services at a reasonable price.

I lived for a few years at the Mardi Gras ground zero in St. Louis. I had a guy offer me 10 bucks just to use my restroom so that he could avoid the line for the porta-potties. Needless to say, I took it, but I briefly considered setting up a sign and selling access to my bathroom for the day. It would have been a good location as I lived across the street from where they set them up, so everyone saw people standing on a balcony right next to where the lines were ending.

I don't think charging $8 for tent and $1 for some snacks is anywhere near price gouging. It certainly doesn't fit the legal definition, since for that you'd have to have been renting out your yard space previously so there was a comparison to be made.

Considering you're also offering water, electricity, and WIFI I'd say $8 is positively generous.

 Grey Templar wrote:
I don't think charging $8 for tent and $1 for some snacks is anywhere near price gouging. It certainly doesn't fit the legal definition, since for that you'd have to have been renting out your yard space previously so there was a comparison to be made.

Considering you're also offering water, electricity, and WIFI I'd say $8 is positively generous.

This. I think it cost us more to go camping that one time my family went camping and we didn't have any of that stuff

Dude, letting people pitch tents for $8 seems like you’re offering one helluva bargain! $10-15 even seems appropriate. You’re DEFINITELY not gouging with what you’ve described here.

I agree, but you need to clearly define what is included in the $8. For example, a regular campsite probably charges a lot more but includes access to showers and lavatories.

Yea thats cheap. I like to rough it and go tent camping every year, and its usually 16 to 20 bucks a night where I go. And Im talking in the woods with only a picnic table and a porta potty here and there.

Id say raise that rate to 10 a night and stop feeling guilty, youll make a killing and your new neighbors will love how generous youve been

Do keep in mind:

a. this would probably be taxable
b. you may be liable for any misadventure that occurs on your land (including theft)

I'd recommend you get some paperwork in order before taking it on. If there's not a communal effort to address it, i'd suggest you start one.

Factor that into what you're charging and your prices should probably go up :|

8 dollars for pitching a tent for a night is absurdly cheap. On a real camping, you'd be spending more, and a lot more if you also want electricity and wi-fi and such. 8 dollars is a very friendly price. As some have already said, you could even bring it up a bit without feeling bad.

 malamis wrote:
Do keep in mind:

a. this would probably be taxable
b. you may be liable for any misadventure that occurs on your land (including theft)

I'd recommend you get some paperwork in order before taking it on. If there's not a communal effort to address it, i'd suggest you start one.

Factor that into what you're charging and your prices should probably go up :|

I don't think there is a need for taxes and paperwork if he keeps it all off the record. As he said, officials are willing to look the other way for a day. I don't know the area, but with events like these in a small town I think the chances of theft and such are not very high.

Imo what you're offering sound pretty fair actually. It's not a luxury hotel but no one is forced to stay there either.

Also I would factor the shower into the price. You pretty much have to give them some kind of water access but if you put the shower as an optional addition, I'm willing to bet someone is going to try to cheap out and try to jerry rig something on their own and make a mess of things (I don't mean you'll miss out on profit, I mean someone is going to have the bright idea of trying to jam a punctured water bottle into the hose and think that will somehow work and likely partially flood your back yard).

 Kilkrazy wrote:
I agree, but you need to clearly define what is included in the $8. For example, a regular campsite probably charges a lot more but includes access to showers and lavatories.

This. Be up front about what is and isn't included.

I actually know a guy on the RAGBRAI leadership committee.

 malamis wrote:
Do keep in mind:

a. this would probably be taxable
b. you may be liable for any misadventure that occurs on your land (including theft)

I'd recommend you get some paperwork in order before taking it on. If there's not a communal effort to address it, i'd suggest you start one.

Factor that into what you're charging and your prices should probably go up :|

It's only taxable if he makes more than a certain amount, and it can be proven. In my state I believe its $1500. But I doubt the IRS is going to chase him down to find out exactly how many people slept in his yard, or how much lemonade his daughter sold.

 Inquisitor Lord Bane wrote:

 malamis wrote:
Do keep in mind:

a. this would probably be taxable
b. you may be liable for any misadventure that occurs on your land (including theft)

I'd recommend you get some paperwork in order before taking it on. If there's not a communal effort to address it, i'd suggest you start one.

Factor that into what you're charging and your prices should probably go up :|

It's only taxable if he makes more than a certain amount, and it can be proven. In my state I believe its $1500. But I doubt the IRS is going to chase him down to find out exactly how many people slept in his yard, or how much lemonade his daughter sold.

The only reason anyone would care about this is if it ends up in court for some reason.

If someone is camping out and gets hurt by tripping over tent, they could decide to sue the property owner that let them rent the place, stuff like that. It's a pretty low risk endeavor, so I don't think that is much to worry about. But you end up with liability for anyone you let on your property.