Question 1

What costs should be included in the 'Total Cost of Service'?

Accepted Answer

You should include all costs directly tied to providing the service. This includes:Supplies: Shampoo for grooming, special ingredients for treats, etc.Direct Labor: The wages of the staff member for the time they spent performing the service.Marketing: Any specific advertising costs for that service.Overhead Allocation: A small portion of your general overhead (rent, utilities) if you want a fully-loaded cost.

Question 2

What is a good ROI for an add-on service?

Accepted Answer

There's no single magic number, but a good ROI is generally considered to be anything over 100% (meaning you made more in profit than the service cost to provide). Services with an ROI over 200-300% are excellent profit centers. The goal is to have a higher ROI on services than your baseline services like boarding or daycare.

Question 3

My ROI is negative. What should I do?

Accepted Answer

A negative ROI means the service is losing money. First, double-check your numbers. If they are correct, you have a few options:Increase Price: The most direct way to increase revenue.Reduce Costs: Find cheaper suppliers or make the process more efficient to reduce labor time.Bundle It: Package the unprofitable service with a high-profit one to increase the overall value and margin.Discontinue: If it can't be made profitable, it may be best to stop offering it.

Question 4

How can I easily track revenue and costs for each service?

Accepted Answer

Using modern pet care software (like ProPet, Gingr, or PetExec) is the best way. These platforms allow you to create distinct service items, track which pets receive them, and run reports on revenue per service. For costs, you'll need to maintain a simple spreadsheet to track supply and labor expenses for each add-on.

Question 5

Which add-on services typically have the highest ROI?

Accepted Answer

Services with low supply costs and minimal extra labor tend to have the highest ROI. Examples include: special 'gourmet' treats, administering medication (if priced appropriately), a 'cuddle time' add-on (pure labor, no supplies), or a simple 'exit bath' that uses existing facilities and minimal extra time.

Add-on Service ROI Calculator

Results

Understanding Add-on Service ROI

Frequently Asked Questions

Need Help Optimizing Your Hospitality Business?