Comment by Plasmoid
1 month ago
I think you're over-estimating how much slack there is in the organization.
A rule of thumb is that benefits cost an employer 25-30% of salary. So you're already pushing to 50% of revenue going to direct salary costs. Then there are employees in non-revenue roles (HR, legal, accounting, IT, etc...) and employees doing non-revenue work.
Finally, you have rent, licensing, insurance, and all the other fixed costs.
An awful lot of businesses go under from underestimating what their expenses inevitably will be. Everyone they deal with has their hand out to get paid.
I mean OP said this is $80 / season, and salary rate is 25/hr.
So to your point, if we assume 4 appointments per season at one hour per, they are actually paying $100 in salary alone to only collect $80 season pass fee - a $20 loss! This business model is not sustainable
I assume that was meant to be "session"
Which is why successful business means being a sociopath.
Anthem Blue cross pays $125-$150/hr. $80/hr is cheap.