Packages Can Boost Profits

3.1 min readPublished On: April 28, 2016Categories: Finances

While we definitely want you to have fun and engage with the dogs it’s also important that your activities contribute to business profits. Depending on your business model extra activities can bring in sizable revenues. Keep reading for tips on creating activity packages to simplify client sales and also boost your business profits.

Now that you have an expanded list of activities for the dogs to enjoy you may find that sales don’t soar right away. Frequently it’s due to clients having too many choices, they begin to feel overwhelmed and the result is they purchase nothing. The secret to growing extra activity sales for dogs that visit daycare or board at your center is creating three package options for a client to select from. Create a base, middle and top package that will range in price and number of extra activities.

Create Packages

Your base package may include one extra activity and a special treat of the day. The middle package could include an extra activity, special treat and a puzzle toy during rest period. The top package includes two extra activities, special treat and two puzzle toys. Most clients will select the middle package so create that one to include the items that really benefit the dogs and you really want to sell.  You can select the activity that each dog participates in based on your assessment of their preferences or what you are offering for the day.

The key to keeping packages simple for clients to purchase and also customized to each dog’s preferences is to organize your activity options by activity level. You do want to have a package that will appeal to a wide range of ages and activity levels. Create three package options that target puppies, active dogs and senior dogs. Follow the same model of a base, middle and top package and customize the contents to what the majority of those dogs need or enjoy. Make sure the activities included in your packages are the most popular, easy to always offer and profitable choices.

Package Pricing

Your activity pricing needs to cover the cost of staff time and supplies. The key is to include in your staff time any preparation, clean-up and report creation time related to providing the activity. Once you know the total amount of time multiply by the average wage you pay plus the cost of taxes & benefits.

If you pay dog attendants $11 per hour and it takes 20 minutes of time to prepare, deliver and clean-up puzzle toys for six dogs; calculate your cost as follows:

$12 ($11 plus $1 for taxes) /3 (one-third of an hour) = $4 /6 (six dogs served) = $.67 per dog for labor plus cost of food serving

An example of calculating total cost and pricing three-tier packages follows:

 BaseMiddleTop
Activity4.004.008.00
Treat.10.10.10
Puzzle Toy0.871.74
Total Cost4.104.979.84
Profit3.905.035.16
Fee Charged8.0010.0015.00

Clients are drawn to packages as it makes their decisions simpler, but also for their value. It can be helpful to show how much they will save buying a package over purchasing the same items individually. So in the example above the individual cost of the activity and treat in the base package should exceed $8; if it’s $10, then be sure to mention that the package saves them 20%.

Packages are a great way to boost revenue in addition to providing fun activities for the dogs that visit your center. Have some fun and add creative names to your packages and then encourage your clients to customize their dog’s day or stay at great value. Post videos and fun shots of dogs enjoying the activity packages on social media and in your lobby and you’ll see your activity revenues soar to new heights.

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