Alibi Ike
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- Aug 8, 2010
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Is there a % profit you look for when you make up a package or an add on? If you do packages to sell rooms rather than to make a profit on selling the package (if that statement makes any sense), that's a different scenario than what I mean. A package I am doing tonight actually costs $6 more than they paid. But it's an off-season driver to get rooms booked at full price (no discounting) for 2 or more nights. So $6 total off the price of the room beats someone arguing for $10 or $20 off per night.
An example would be an anniversary package with flowers, wine, dinner, whatever. Do you price that to make a certain % back or do you think it drives business to your door because you offer the add on? Also, if you live in an area where you can get good discounts do you price your add ons lower or keep them high to show they're 'worth it'. I'm thinking an anniversary package you can supply for $10 could sell for $20 but would probably also bring in $40 faster. $20 seeming to be 'cheap' and possibly scaring off buyers. Maybe my question can't be answered with a simple %.
I am trying to figure out if I should set a minimum % profit on an add on. Sometimes I end up making $5, sometimes $15. I know with the $5 it's more just to have the item for the guest than to make a profit but I want to stop thinking that way and start thinking about making some actual money! Today I went and bought all the parts for a package for tomorrow. I ended up with a $20 profit on a $60 add on. I think that's a good profit, but maybe I'm wrong!
I don't count time/labor/driving costs in this, just the price of the items in the add on or package. I can get all of the items during regular shopping trips and I keep a list on hand of what add ons are coming up.
An example would be an anniversary package with flowers, wine, dinner, whatever. Do you price that to make a certain % back or do you think it drives business to your door because you offer the add on? Also, if you live in an area where you can get good discounts do you price your add ons lower or keep them high to show they're 'worth it'. I'm thinking an anniversary package you can supply for $10 could sell for $20 but would probably also bring in $40 faster. $20 seeming to be 'cheap' and possibly scaring off buyers. Maybe my question can't be answered with a simple %.
I am trying to figure out if I should set a minimum % profit on an add on. Sometimes I end up making $5, sometimes $15. I know with the $5 it's more just to have the item for the guest than to make a profit but I want to stop thinking that way and start thinking about making some actual money! Today I went and bought all the parts for a package for tomorrow. I ended up with a $20 profit on a $60 add on. I think that's a good profit, but maybe I'm wrong!
I don't count time/labor/driving costs in this, just the price of the items in the add on or package. I can get all of the items during regular shopping trips and I keep a list on hand of what add ons are coming up.