0
cvfd1399

Lets talk about DZ and money

Recommended Posts

Quote

... Skydive Chicago both do alot more than that in one day.



I know there were quite a number of weekends last summer where they had 120-160 on the books for the day. If I'm remembering right it was ~30 +/- loads and half were always tandems

Where is my fizzy-lifting drink?

Share this post


Link to post
Share on other sites
Quote

In my perfect Otter world I think without video guys you would get 9 slots for tandems at $175 a head equaling $1575 a load full of tandems.

Jumpers get 18 slots at $20 a slot equaling $360 a load

>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>
If you only take 6 tandems, plus 6 videographers, your earn: 6 x 175 = $1050
6 x 90 = 540
revenue per lift = $1590

Or you can strap Handi-Mounts on all 9 TIs and charge $55 per hand-mounted video.
9 x $175 = $1575
9 x 55 = 495
revenue per load of $2070.

However, remember that most DZs don't profit from selling videos. They barely break even on video, calculating video as "advertising that pays for itself."

Share this post


Link to post
Share on other sites
Quote

However, remember that most DZs don't profit from selling videos. They barely break even on video, calculating video as "advertising that pays for itself."



I don't see how they just barely break even at most DZ's. I see that at my home DZ, since video is only $35 for tandems, but don't see that if they are charging $75.

Share this post


Link to post
Share on other sites
Quote



Utilities. Property taxes. Runway maintinence. Aircraft maintinence. Manifest staff. Editing equipment. Grounds upkeep. Garbage service. Pumping the septic system.

Oh yeah. Advertising.



Gross Margin is a specific financial term that excludes any of the things you mentioned above, which are all SG&A. The only one that is relevant to calculating the tandem vs. fun jumper breakeven calculation is Advertising. The others are all “fixed” and occur with fun jumpers or tandems.

Seriously, here guys the point is that the Gross Margin for a tandem is very high compared to a fun jump, we can debate the magnitude of that difference but not it's existance. In my personal opinion they are both important parts of the overall revenue stream of a DZ, properly run.

Ron, CPA (Did I tell you I was Willy Nelson's Accountant before I moved on to Enron?) ;)
"We've been looking for the enemy for some time now. We've finally found him. We're surrounded. That simplifies things." CP

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.
Note: Your post will require moderator approval before it will be visible.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

0