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  • hotel rate why

    I was just thinking the other day...well I was breaking down our rates. This was caused from people just being so confused at our high rates!

    Right now our single person rate is $129+tax.

    My 8 hours alone, before tax, I get $100. We have between 20-30 people working a day. Let's hit low, and assume they make 20 less then me, so $80. So 30 x 80 = $2400. We also got a bonus last month, per employee, of a whole $30. So, 30 x 30 = $900/mo for for bonus. I assume management's wages are year are...well nice. But they are payed on sallary, so I will ignore that one right now. If we sell all current avaiable rooms for our average we had last night, which was $101, but is usually around 90. Okay so last night we roughly made $12,120. Odds are at least one person will claim something horrible went wrong with thier stay, so let's deduct $101 from that so $12,019.

    Okay enough numbers. We have a 24-hr pool & fitness room. A free business center computer with limitless paper usage (we don't charge). We don't charge for copies unless someone plans on doing 200+ copies, and we fax for free. We have an included breakfast buffet inlcuding a different hot item every day. We have an open (no code or passwords needed) wireless internet system.

    Rooms are often destroyed, and we have to deep clean (including hiring carpet cleaning etc) at least once a week. Per room that is often close to $200 for nonsmoking rooms that were smoked in. (We do charge said smoker if we have their info/cc.)

    We only charge for 1-2 adults. So, there can be 4-5 adults in a room but we only charged for 2. We do not charge for children.

    The hotel needs 3-star upkeep, so things are constantly being replaced and/or repaired. Paint, furnature, carpet. We even had our pool completly resurfaced recently. Our last carpet replace cost $60,000, no joke.

    We are inspected quarterly by our mother company, and have to pass that inspection or after 3 fails we would lose our brand name.

    We have to order only our hotels' brand goods, which only come from our mother company. Everything, including towels & soaps are specially designed and stamped with our hotel's brand name. Our uniforms are not that great, but for 5 shirts and three kacki pants (specially designed by our mother company), a uniform for one person costs $200. Replacements and reorders are often needed for these.

    9 buckets of fruit and 2 boxes of paper plates for the breakfast bar costs $93 (I have seen them myself), and that is only the beginning for the breakfast bar.

    Okay I am gonna shut up now. My point is, I think $129 is a rather fabulous deal! But I do understand people who don't plan on swimming, eating, exercising, and only sleeping. But without those I would say $99 is a great deal.
    Last edited by thehippie777; 07-23-2009, 11:42 AM.
    When it comes to getting things done, we need fewer architects and more bricklayers. ---Colleen C. Barrett---

  • #2
    Quoth thehippie777 View Post
    Okay I am gonna shut up now. My point is, I think $129 is a rather fabulous deal! But I do understand people who don't plan on swimming, eating, exercising, and only sleeping. But without those I would say $99 is a great deal.
    Yup. And you haven't even included mortgage, heat, insurance of several kinds, municipal taxes, maintenance for heating and cooling equipment, landscaping....
    There's no such thing as a stupid question... just stupid people.

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    • #3
      I work in a law office, and I am tired of hearing, "Why does the lawyer charge $XXX per hour? That's a ripoff. It's just talking."

      Well, the lawyer talking is how the lawyer pays the bills, which include:

      Rent
      Employees
      Utilities
      IT
      Office Supplies
      Janitorial Service and Supplies
      Phone Service and Equipment
      Car Costs (have to get to court or meetings somehow)
      Required Continuing Education
      etc., etc., etc.

      And another huge cost is clients that never pay.
      Labor boards have info on local laws for free
      HR believes the first person in the door
      Learn how to go over whackamole bosses' heads safely
      Document everything
      CS proves Dunning-Kruger effect

      Comment


      • #4
        Quoth wagegoth View Post
        I work in a law office, and I am tired of hearing, "Why does the lawyer charge $XXX per hour? That's a ripoff. It's just talking."

        Well, the lawyer talking is how the lawyer pays the bills, which include:

        Rent
        Employees
        Utilities
        IT
        Office Supplies
        Janitorial Service and Supplies
        Phone Service and Equipment
        Car Costs (have to get to court or meetings somehow)
        Required Continuing Education
        etc., etc., etc.

        And another huge cost is clients that never pay.
        Not to mention the schooling and passing the BAR...
        When it comes to getting things done, we need fewer architects and more bricklayers. ---Colleen C. Barrett---

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        • #5
          Oh, and don't forget franchise fees, those are a killer.
          I had one guest ask why it was so expensive to stay, I pointed out our hotel sign and said "well, 10% of your bill is so that you can stay at a hotel with that sign out front"
          That shut him up right quick (this was at our Draper location, which has a more prestigious name than the airport location... and this guy had told us that he was going to be meeting clients, so a name is very important).
          If you wish to find meaning, listen to the music not the song

          Comment


          • #6
            We get that in software all the time...

            "It's just a CD! I can buy a CD at WalMart for pennies!"

            Well, it's not the CD they're buying you see. They buying the code that's on it and the tech support for that code that we provide. Let's say the salaries, overhead and equipment cost to provide and support that code is, for the sake of this post, about a million dollars a year.

            Now we could charge just one customer a million dollars every year, then charge everyone else the cost of the CD.

            But somehow or other I think we might have a problem finding someone willing to be that one million dollar customer, so we think it makes more sense to divide the cost amongst our customers according to a more equitable formula.

            Naturally if all they want is just a CD, I suppose we could sell them one for ten cents (plus $10 shipping and handling ). Code and support not included.
            The best karma is letting a jerk bash himself senseless on the wall of your polite indifference.

            The stupid is strong with this one.

            Comment


            • #7
              Quoth Dips View Post
              We get that in software all the time...

              "It's just a CD! I can buy a CD at WalMart for pennies!"....

              Naturally if all they want is just a CD, I suppose we could sell them one for ten cents (plus $10 shipping and handling ). Code and support not included.
              Burn them a CD with all the bits of code... all the 1's, all the 0's.

              Putting them in the correct order is a simple task... as the kiddies toys say: "Some assembly required. Batteries not included."
              I am not an a**hole. I am a hemorrhoid. I irritate a**holes!
              Procrastination: Forward planning to insure there is something to do tomorrow.
              Derails threads faster than a pocket nuke.

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              • #8
                I used to get people complaining about my $25/hr programming/website rate (which used to be 1-4 hours work, now it's 1-2 as min. wage went up, as did my costs). I shut them up real quick when I asked if they wanted to be billed for actual hours at min wage (4 hours at min would be $32).

                With hotels, I normally only wonder about price differences when there's two hotels of equal types of furnishings, yet one is amost 50% the price of the other.

                And like with other professions, (ex: lawyers) I only wonder why they charge so much when something like this happens: "so let me get this straight, I paid $225 for you to fill out paperwork that I had signed.... then you, well not you but your intern, messed up the paperwork so you called to tell me that you messed it up, and that I now owe $225 for the phone call to tell me this + $225 for the paperwork to be redone + $XXX for the fines for the paperwork not being filed on time + $$ for a statement telling me I owe you extra money for messing up?" "yes" "and when I come back in to sign for the paperwork, will that cost me more" "yes". (the lawyer was "nice" and refunded 50% of the bill).

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                • #9
                  Quoth JLRodgers View Post
                  And like with other professions, (ex: lawyers) I only wonder why they charge so much when something like this happens: "so let me get this straight, I paid $225 for you to fill out paperwork that I had signed.... then you, well not you but your intern, messed up the paperwork so you called to tell me that you messed it up, and that I now owe $225 for the phone call to tell me this + $225 for the paperwork to be redone + $XXX for the fines for the paperwork not being filed on time + $$ for a statement telling me I owe you extra money for messing up?" "yes" "and when I come back in to sign for the paperwork, will that cost me more" "yes". (the lawyer was "nice" and refunded 50% of the bill).
                  It's the lawyers responsibility to review anything done by his staff, including his paralegal, before it is turned over to the client. Anything else should be reported to the state bar.
                  Labor boards have info on local laws for free
                  HR believes the first person in the door
                  Learn how to go over whackamole bosses' heads safely
                  Document everything
                  CS proves Dunning-Kruger effect

                  Comment

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