Let's talk about numbers :)

Hello fellow inn keepers.
I am fairly new to this world and would like to know if you could help me get a grasp on your income to expenses ratio.
So when you take in $100 what % of that goes towards operating expenses such as food and cleaning.
I understand that the lower the % the better but is there an average for our field?
Thank you in advance for your time and reply
James

Depends on each individual inn and you tax regimes.
Let's say your tax is 20% and you are processing 90% on CC with a average of 3% processing fees. So of the $100, $20 is the governments, but you have to pay their processing fees, so you are getting $10 cash, $90 in CC and of the $90 you are actually seeing $87.30. So you have taken in only $97.30 and have to pay out $20 in tax, leaving your $77.30
Now, you have to pay insurance, licencing fees, breakfast, amenities, breakage, advertising, salaries, etc. But those also depend, are you serving a hot breakfast or cold? Continental? Do you provide cheap shampoo, expensive shampoo? Do you provide shoe buffers, shower caps, conditioner, soap, shower gel, tea, coffee, baked goods? etc etc etc.

Sugar Bear said:

Depends on each individual inn and you tax regimes.
Let's say your tax is 20% and you are processing 90% on CC with a average of 3% processing fees. So of the $100, $20 is the governments, but you have to pay their processing fees, so you are getting $10 cash, $90 in CC and of the $90 you are actually seeing $87.30. So you have taken in only $97.30 and have to pay out $20 in tax, leaving your $77.30
Now, you have to pay insurance, licencing fees, breakfast, amenities, breakage, advertising, salaries, etc. But those also depend, are you serving a hot breakfast or cold? Continental? Do you provide cheap shampoo, expensive shampoo? Do you provide shoe buffers, shower caps, conditioner, soap, shower gel, tea, coffee, baked goods? etc etc etc..

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LOL... and people wonder why you can't make a fortune running a B & B. I never even considered any of this...I took it in, spent it and whatever was left was profit...LOL..never saw a profit.

Thank you. I guess it really does depend on the setup. I was naively looking for a magic number to try to set up some sort of stardand.
Any other input is appreciated. Thank you

for each $100 in, about $110 out...

Harborfields said:

for each $100 in, about $110 out....

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Harborfields said:

for each $100 in, about $110 out...

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LMBO!!!!!!!

Harborfields said:

for each $100 in, about $110 out....

Click to expand...

Harborfields said:

for each $100 in, about $110 out...

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My place is easily paying its way. Pays all the supplies, utilities, advertising, insurance, taxes, with money left over.
Ummm. Then there's the mortgage. Pays a tiny percent of that.
Ooops.
jgessentials, I think the conventional wisdom here says the benefit of running an inn is that you get to live in a much nicer place than you ever dreamed of (except you're in a tiny corner of it, strangers live in the place with you, and they get the run of the best parts) while the business helps you pay for the nice place. It doesn't provide much income. It just helps you pay for a valuable property that, if you're lucky, you can sell for a nice profit some day.
The luckiest innkeepers are the ones who inherit the place already paid for, but those are rare.

Mine does what I asked of it, it pays the expenses of the business, allows me to live in the greatest little city in the world, and gives me some extra to spend supporting things in town like kids basketball, Key Club, etc. what more could I ask for? Basically it is money in, more money out!