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Is this offer worth it?
Check what a discount needs to earn its keep, for rooms, tours or restaurant items.
Hypothetical example. Replace these figures with your own.
Your normal price and offer
Costs that rise with sales. For restaurants include ingredients; for rooms spread cleaning over the stay.
Use one planning period for both normal sales and the offer.
Fees, extra costs & capacity
Include free extras or added delivery costs; count each cost once.
Advertising, campaign spend or any added operating costs. Common overhead cancels in this comparison.
Blank or zero means not set. Use the same period/departure as your normal sales.
Included: normal fees 15%; offer fees 15%; extra per sale BZD 0.00; extra fixed costs BZD 150.00.
What the offer needs
Offer price: BZD 200.00 per sale.
Sales needed to match normal earnings
108 room nights36 extra sales (50.0% more).
At the same 72 sales, the offer leaves BZD 6,330.00, compared with BZD 9,540.00 normally, before common overhead and tax.
Change: BZD -3,210.00. Required sales are rounded up. Recalculate if added sales require another departure, extra staff or more fixed costs.
How this is calculated
Normal contribution per sale: BZD 132.50. Offer contribution per sale: BZD 90.00.
Required sales = (normal sales × normal contribution + extra fixed offer costs) ÷ offer contribution, rounded up. Contribution deducts percentage fees and per-sale costs. Shared overhead is excluded from both cases; these balances are not net profit.
A discount can reduce earnings when existing customers would have paid the normal price. Check realistic demand, available capacity and every added cost before launching.
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