Question 1

What are 'Fixed Costs' for a retreat?

Accepted Answer

Fixed costs are expenses that do not change regardless of how many guests attend. This includes major expenses like the venue rental fee, lead instructor fees, marketing campaign costs, and any non-refundable deposits.

Question 2

What are 'Variable Costs per Guest'?

Accepted Answer

Variable costs scale directly with the number of attendees. This includes the cost of food and beverages per person, welcome gifts or materials, individual room costs (if you pay the hotel per person), and any commission-based fees for assistants.

Question 3

My break-even point is higher than my venue's capacity. What does this mean?

Accepted Answer

If your break-even point in guests is higher than the maximum number of guests you can host, the retreat is not financially viable with its current cost and pricing structure. You must either increase your revenue per guest (raise the price), decrease your fixed or variable costs, or a combination of all three.

Question 4

How can I lower my break-even point?

Accepted Answer

To lower your break-even point, you need to increase your contribution margin. You can do this by:Increasing the price per guest.Decreasing the variable cost per guest (e.g., finding a more affordable caterer).Decreasing your total fixed costs (e.g., negotiating a better rate with your venue or lead instructor).

Question 5

Should I cancel a retreat if I don't reach the break-even number by a certain date?

Accepted Answer

This is a common practice. Many retreat organizers set a 'go/no-go' date. If they haven't reached their break-even number of sign-ups by that date, they may cancel the retreat and refund the attendees to avoid taking a significant financial loss. This calculator helps you determine exactly what that magic number is.

Retreat Occupancy Break-Even Tool

Results

Understanding Break-Even Point

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