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% profit on a package or add on?

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Alibi Ike

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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.
 

JBloggs

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I totally understand what you mean. To throw another question into the mix, or statement as is typical "It is only worth what someone would pay"
So if you do a cheese, crackers and fruit plate. To make up a nice one with a bit of variety it will cost say $15-20.00. is a guest willing to pay a the profit on that? Typically food s/b double the cost (in my mind). I can't see anyone willing to pay $40.00 here. But I can add in some lower cost items to bring the profit up elsewhere...ie flowers that I pay $15-18 for and charge $32. So make it with those two items and someone will pay it.
This dinner boat thing, some fridays they had themed night which was $10 more per person, some they didn't. I just ate the cost of the addtl themed fridays as I wanted the rooms booked. So on those nights I made less profit. It was TOO difficult to have prices that were not static, too hard to explain, too hard all round.
So whatever if it you are selling, try to make it a common price, ie buy flowers at a florist for $50-60 is not alot, so if you charged $45 that is a pretty good deal (for the guest). You get them and put them in the room, deliver them, so your price would be a bargain!
Just my 2 cents from my experience here.
 

Breakfast Diva

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I typically go with a 100% markup for our romantic add-on packages. Since we are not in a city, it's not simple for people to just go nextdoor or down the block to pick up items, so they tend to purchase from us. I would imagine if you're located in a town, the price point would be a little tougher to figure out since folks can easily and quickly pick things up for themselves. Still, even with being in a town, don't undersell yourself. Your time and energy to pick up those items, prepare and arrange are worth charging for.
It seems to me to have a simple (non-gourmet, $15 of product) fruit/cheese plate in my room on arrival is worth at least $30 just for the convenience!
 

Don Draper

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Great question. We have always done everything strictly as a pass-through for add-ons, so they pay what we pay. But I don't make the stuff myself like you all do. We have a nice gourmet shop here that I'll get baskets of candy or snacks and they just pay the price. When we do packages it is off-season so it's more to fill the rooms than anything else.
If you're going to get/making a lot of this stuff yourself I would say add at least 15% mark-up. The driving, your time and energy, plus a credit card fee because that's how the guest usually pays.
 

Alibi Ike

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I typically go with a 100% markup for our romantic add-on packages. Since we are not in a city, it's not simple for people to just go nextdoor or down the block to pick up items, so they tend to purchase from us. I would imagine if you're located in a town, the price point would be a little tougher to figure out since folks can easily and quickly pick things up for themselves. Still, even with being in a town, don't undersell yourself. Your time and energy to pick up those items, prepare and arrange are worth charging for.
It seems to me to have a simple (non-gourmet, $15 of product) fruit/cheese plate in my room on arrival is worth at least $30 just for the convenience!.
I would love to be able to do a nice cheese tray but the pricing is out of my range. For a 'nice' cheese tray I would have to charge $50 because buying all the cheese and crackers runs around $25. The guests wouldn't get all of it and it would look skimpy at $50. If more guests would opt for something like that it might work. I tried it for awhile and it was too much out of pocket for nothing in return. Plus having all that leftover cheese to eat! I doubt having it available swayed guests to stay here over someplace else.I still like the idea so I may go check how much a pre-made cheese tray would be. I could transfer it to a pretty tray.
 

Breakfast Diva

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I typically go with a 100% markup for our romantic add-on packages. Since we are not in a city, it's not simple for people to just go nextdoor or down the block to pick up items, so they tend to purchase from us. I would imagine if you're located in a town, the price point would be a little tougher to figure out since folks can easily and quickly pick things up for themselves. Still, even with being in a town, don't undersell yourself. Your time and energy to pick up those items, prepare and arrange are worth charging for.
It seems to me to have a simple (non-gourmet, $15 of product) fruit/cheese plate in my room on arrival is worth at least $30 just for the convenience!.
I would love to be able to do a nice cheese tray but the pricing is out of my range. For a 'nice' cheese tray I would have to charge $50 because buying all the cheese and crackers runs around $25. The guests wouldn't get all of it and it would look skimpy at $50. If more guests would opt for something like that it might work. I tried it for awhile and it was too much out of pocket for nothing in return. Plus having all that leftover cheese to eat! I doubt having it available swayed guests to stay here over someplace else.I still like the idea so I may go check how much a pre-made cheese tray would be. I could transfer it to a pretty tray.
.
Alibi Ike said:
I would love to be able to do a nice cheese tray but the pricing is out of my range. For a 'nice' cheese tray I would have to charge $50 because buying all the cheese and crackers runs around $25. The guests wouldn't get all of it and it would look skimpy at $50. If more guests would opt for something like that it might work. I tried it for awhile and it was too much out of pocket for nothing in return. Plus having all that leftover cheese to eat! I doubt having it available swayed guests to stay here over someplace else.I still like the idea so I may go check how much a pre-made cheese tray would be. I could transfer it to a pretty tray.
$25 for the items? Sounds pretty high to me. This doesn't have to be gourmet. Do you have a Costco or similar you shop at? We get the Cabaret crackers for about $7 for 5 boxes, or you can get a baguette of French bread for less than $2. The cheese can be just whatever you get in the grocery store...a little hunk of cheddar, a little hunk of Swiss, etc. probably no more than $6 or $7. Sliced apples, a few grapes, etc and that's it. The key is to present it on a lovely tray, maybe with a $2 bottle of sparkling cider and a few little chocolates. What people are looking for is convenience and how attractive it looks.
 

agoodman

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Sometimes (depending on yor situation) you should think of a package not necessarily as a profit center (of course its nice if it is!) but as an added incentive to get guests to come to your inn
In my case there are NO 'really nice" restaurants and few decent, and often my guests have had a long day and don't even want to go out once they have checked in. Many have told me the reason they come is because they know I can do something for them food wise. (I make literally no profit on my 4 course candlelight dinners when I add food cost, shopping time, prep time, serving time and cleanup, but I have had lots of repeat guests because of it. And referrals. Now I am NOT suggesting that everyone should do this, but in the case of my Inn it does draw people.
If you want to do a nice cheese plate without spending a fortune of cheese, the picture shown above is a nice example. You don't HAVE to have imported, you don't only have to do cheese. I add fruit, salami or some think sliced turkey or ham (you can buy those little packets for 0.99c), sliced cucumber, radishes (last for weeks in the fridge), baby carrots, pickles, nuts etc.... take a look in your fridge or pantry and you can probably make up something right now.
Choc covered strawberries are easy to make, mine certainly don't look like Shari's Berries but they go down the same way. (and are less expensive).
 

Alibi Ike

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I typically go with a 100% markup for our romantic add-on packages. Since we are not in a city, it's not simple for people to just go nextdoor or down the block to pick up items, so they tend to purchase from us. I would imagine if you're located in a town, the price point would be a little tougher to figure out since folks can easily and quickly pick things up for themselves. Still, even with being in a town, don't undersell yourself. Your time and energy to pick up those items, prepare and arrange are worth charging for.
It seems to me to have a simple (non-gourmet, $15 of product) fruit/cheese plate in my room on arrival is worth at least $30 just for the convenience!.
I would love to be able to do a nice cheese tray but the pricing is out of my range. For a 'nice' cheese tray I would have to charge $50 because buying all the cheese and crackers runs around $25. The guests wouldn't get all of it and it would look skimpy at $50. If more guests would opt for something like that it might work. I tried it for awhile and it was too much out of pocket for nothing in return. Plus having all that leftover cheese to eat! I doubt having it available swayed guests to stay here over someplace else.I still like the idea so I may go check how much a pre-made cheese tray would be. I could transfer it to a pretty tray.
.
Alibi Ike said:
I would love to be able to do a nice cheese tray but the pricing is out of my range. For a 'nice' cheese tray I would have to charge $50 because buying all the cheese and crackers runs around $25. The guests wouldn't get all of it and it would look skimpy at $50. If more guests would opt for something like that it might work. I tried it for awhile and it was too much out of pocket for nothing in return. Plus having all that leftover cheese to eat! I doubt having it available swayed guests to stay here over someplace else.I still like the idea so I may go check how much a pre-made cheese tray would be. I could transfer it to a pretty tray.
$25 for the items? Sounds pretty high to me. This doesn't have to be gourmet. Do you have a Costco or similar you shop at? We get the Cabaret crackers for about $7 for 5 boxes, or you can get a baguette of French bread for less than $2. The cheese can be just whatever you get in the grocery store...a little hunk of cheddar, a little hunk of Swiss, etc. probably no more than $6 or $7. Sliced apples, a few grapes, etc and that's it. The key is to present it on a lovely tray, maybe with a $2 bottle of sparkling cider and a few little chocolates. What people are looking for is convenience and how attractive it looks.
.
$4 for a box of crackers. $6-7 each for the cheeses (we put out 4 different types) $2 for 2 apples. That doesn't even include dressing up the tray in any way. Like I said, ridiculous prices. For us to get to Costco or the like, it's about an hour and a half roundtrip, so then there's the time factor. And standing in line and finding our way around the store. I'd love to go to a local cheese shop and just get 1/4 lb hunks of cheese but most of the time their cheese looks old. I can still do a little more research.
 

Alibi Ike

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Sometimes (depending on yor situation) you should think of a package not necessarily as a profit center (of course its nice if it is!) but as an added incentive to get guests to come to your inn
In my case there are NO 'really nice" restaurants and few decent, and often my guests have had a long day and don't even want to go out once they have checked in. Many have told me the reason they come is because they know I can do something for them food wise. (I make literally no profit on my 4 course candlelight dinners when I add food cost, shopping time, prep time, serving time and cleanup, but I have had lots of repeat guests because of it. And referrals. Now I am NOT suggesting that everyone should do this, but in the case of my Inn it does draw people.
If you want to do a nice cheese plate without spending a fortune of cheese, the picture shown above is a nice example. You don't HAVE to have imported, you don't only have to do cheese. I add fruit, salami or some think sliced turkey or ham (you can buy those little packets for 0.99c), sliced cucumber, radishes (last for weeks in the fridge), baby carrots, pickles, nuts etc.... take a look in your fridge or pantry and you can probably make up something right now.
Choc covered strawberries are easy to make, mine certainly don't look like Shari's Berries but they go down the same way. (and are less expensive)..
agoodman said:
.... take a look in your fridge or pantry and you can probably make up something right now.
I couldn't make my own dinner from the stuff in my pantry or fridge, much less a presentable layout for a guest! But I get the idea.
 

Alibi Ike

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That looks yummy. And a lot of it is the layout. You're right, the cheese trays I've seen usually have cubed cheese and it's usually all the same cheese, just different colors.
 

agoodman

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Sometimes (depending on yor situation) you should think of a package not necessarily as a profit center (of course its nice if it is!) but as an added incentive to get guests to come to your inn
In my case there are NO 'really nice" restaurants and few decent, and often my guests have had a long day and don't even want to go out once they have checked in. Many have told me the reason they come is because they know I can do something for them food wise. (I make literally no profit on my 4 course candlelight dinners when I add food cost, shopping time, prep time, serving time and cleanup, but I have had lots of repeat guests because of it. And referrals. Now I am NOT suggesting that everyone should do this, but in the case of my Inn it does draw people.
If you want to do a nice cheese plate without spending a fortune of cheese, the picture shown above is a nice example. You don't HAVE to have imported, you don't only have to do cheese. I add fruit, salami or some think sliced turkey or ham (you can buy those little packets for 0.99c), sliced cucumber, radishes (last for weeks in the fridge), baby carrots, pickles, nuts etc.... take a look in your fridge or pantry and you can probably make up something right now.
Choc covered strawberries are easy to make, mine certainly don't look like Shari's Berries but they go down the same way. (and are less expensive)..
agoodman said:
.... take a look in your fridge or pantry and you can probably make up something right now.
I couldn't make my own dinner from the stuff in my pantry or fridge, much less a presentable layout for a guest! But I get the idea.
.
I couldn't make my own dinner from the stuff in my pantry or fridge, much less a presentable layout for a guest! But I get the idea.
[/quote]
I BET YOU $5 YOU CAN!!!
 

JBloggs

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Let's look at the cost. From my cheese cracker fruit example, go to your local grocery store and buy a VERY small party platter of those items and it is $25. Little cubes of hard cheese on a plastic plate, so add in some nice plates and napkins and I think it is very much more upscale vs what you find elsewhere. So the cost is the cost, we don't get stuff wholesale and not a restaurant.
 

gillumhouse

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With my packages I always try to include 3 or more things so the costs cannot be broken down by the guest. A $395 weekend package that includes 2-nights, 2 breakfasts, a packed lunch, a dinner, and a routing for site-seeing and a wine-tastig is great but if they were told the dinner was going to be $60 they would probably decide not to have it.
I try to have a lot of the dinner stuff in the freezer - when i made maicotti I made a LOT and froze it. I have come up with a better way now. Making the pasta was the time consumer so now I make a lot of it and after drying and boiling it the normal way, pat dry and put between pieces of waxed paper and vac seal/freeze in packs of 6 (in case some tear). Takes up less space. Doing it this way cuts sown on my time so makes it more profitable and the package brings them - one stop shop/one credit card swipe.
 

egoodell

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I typically go with a 100% markup for our romantic add-on packages. Since we are not in a city, it's not simple for people to just go nextdoor or down the block to pick up items, so they tend to purchase from us. I would imagine if you're located in a town, the price point would be a little tougher to figure out since folks can easily and quickly pick things up for themselves. Still, even with being in a town, don't undersell yourself. Your time and energy to pick up those items, prepare and arrange are worth charging for.
It seems to me to have a simple (non-gourmet, $15 of product) fruit/cheese plate in my room on arrival is worth at least $30 just for the convenience!.
I would love to be able to do a nice cheese tray but the pricing is out of my range. For a 'nice' cheese tray I would have to charge $50 because buying all the cheese and crackers runs around $25. The guests wouldn't get all of it and it would look skimpy at $50. If more guests would opt for something like that it might work. I tried it for awhile and it was too much out of pocket for nothing in return. Plus having all that leftover cheese to eat! I doubt having it available swayed guests to stay here over someplace else.I still like the idea so I may go check how much a pre-made cheese tray would be. I could transfer it to a pretty tray.
.
Alibi Ike said:
I would love to be able to do a nice cheese tray but the pricing is out of my range. For a 'nice' cheese tray I would have to charge $50 because buying all the cheese and crackers runs around $25. The guests wouldn't get all of it and it would look skimpy at $50. If more guests would opt for something like that it might work. I tried it for awhile and it was too much out of pocket for nothing in return. Plus having all that leftover cheese to eat! I doubt having it available swayed guests to stay here over someplace else.I still like the idea so I may go check how much a pre-made cheese tray would be. I could transfer it to a pretty tray.
We found a local cheesemaker that makes a killer cheeseball which can be frozen. We buy them 12 at a time at $4 each. Put that on a nice plate wtih a tiny cluster of grapes and two strawberries with crostini from our bakery and crackers from Sams club, double my price and sell for $12
Riki
 

Breakfast Diva

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I typically go with a 100% markup for our romantic add-on packages. Since we are not in a city, it's not simple for people to just go nextdoor or down the block to pick up items, so they tend to purchase from us. I would imagine if you're located in a town, the price point would be a little tougher to figure out since folks can easily and quickly pick things up for themselves. Still, even with being in a town, don't undersell yourself. Your time and energy to pick up those items, prepare and arrange are worth charging for.
It seems to me to have a simple (non-gourmet, $15 of product) fruit/cheese plate in my room on arrival is worth at least $30 just for the convenience!.
I would love to be able to do a nice cheese tray but the pricing is out of my range. For a 'nice' cheese tray I would have to charge $50 because buying all the cheese and crackers runs around $25. The guests wouldn't get all of it and it would look skimpy at $50. If more guests would opt for something like that it might work. I tried it for awhile and it was too much out of pocket for nothing in return. Plus having all that leftover cheese to eat! I doubt having it available swayed guests to stay here over someplace else.I still like the idea so I may go check how much a pre-made cheese tray would be. I could transfer it to a pretty tray.
.
Alibi Ike said:
I would love to be able to do a nice cheese tray but the pricing is out of my range. For a 'nice' cheese tray I would have to charge $50 because buying all the cheese and crackers runs around $25. The guests wouldn't get all of it and it would look skimpy at $50. If more guests would opt for something like that it might work. I tried it for awhile and it was too much out of pocket for nothing in return. Plus having all that leftover cheese to eat! I doubt having it available swayed guests to stay here over someplace else.I still like the idea so I may go check how much a pre-made cheese tray would be. I could transfer it to a pretty tray.
$25 for the items? Sounds pretty high to me. This doesn't have to be gourmet. Do you have a Costco or similar you shop at? We get the Cabaret crackers for about $7 for 5 boxes, or you can get a baguette of French bread for less than $2. The cheese can be just whatever you get in the grocery store...a little hunk of cheddar, a little hunk of Swiss, etc. probably no more than $6 or $7. Sliced apples, a few grapes, etc and that's it. The key is to present it on a lovely tray, maybe with a $2 bottle of sparkling cider and a few little chocolates. What people are looking for is convenience and how attractive it looks.
.
$4 for a box of crackers. $6-7 each for the cheeses (we put out 4 different types) $2 for 2 apples. That doesn't even include dressing up the tray in any way. Like I said, ridiculous prices. For us to get to Costco or the like, it's about an hour and a half roundtrip, so then there's the time factor. And standing in line and finding our way around the store. I'd love to go to a local cheese shop and just get 1/4 lb hunks of cheese but most of the time their cheese looks old. I can still do a little more research.
.
My Costco is 1 1/2 hours each way. We go about once a month and stock up. You certainly don't need to use the entire $6-$7 hunk of each cheese, or 4 varieties. I slice what I need then shrink wrap the rest. It lasts a very long time that way and doesn't go to waste. $1.50 a box for the crackers I described above.
There are definitely inexoensive ways to do it. The photo JB posted looks lovely and it's very simple and cost effective.
This little fruit plate was in the summer, so I did summer fruits that were on sale.
 

One Day

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Making a profit is always desireable....
Most retail, some wholesale and yes some contractors have lose leaders.....things that are sold/provided at little or no profit, or at a small lose to bring in customers.
In this case.....an off season add on package lose leader can be used to fill rooms.
As with anything.....preceived value is what sells
 

Samster

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I typically go with a 100% markup for our romantic add-on packages. Since we are not in a city, it's not simple for people to just go nextdoor or down the block to pick up items, so they tend to purchase from us. I would imagine if you're located in a town, the price point would be a little tougher to figure out since folks can easily and quickly pick things up for themselves. Still, even with being in a town, don't undersell yourself. Your time and energy to pick up those items, prepare and arrange are worth charging for.
It seems to me to have a simple (non-gourmet, $15 of product) fruit/cheese plate in my room on arrival is worth at least $30 just for the convenience!.
I would love to be able to do a nice cheese tray but the pricing is out of my range. For a 'nice' cheese tray I would have to charge $50 because buying all the cheese and crackers runs around $25. The guests wouldn't get all of it and it would look skimpy at $50. If more guests would opt for something like that it might work. I tried it for awhile and it was too much out of pocket for nothing in return. Plus having all that leftover cheese to eat! I doubt having it available swayed guests to stay here over someplace else.I still like the idea so I may go check how much a pre-made cheese tray would be. I could transfer it to a pretty tray.
.
Frankly, my cheese & fruit trays were barely a break even proposition. My happy birthday package with a mini cake and plates, forks, etc. was also just a break even. They were a good amenity to provide though. The cheese and cracker tray was popular with late arrivals and romantic occasion guests.
I made a nice little profit on flowers and chocolate dipped strawberries. I think people are used to florist costs so they actually thought they were getting a good deal here. :)
I set the price for my packages on what the market would bear for my location. I noticed that there are a lot of places that charged almost double but I wouldn't have sold any at those prices.
 
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