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Return on Investment

July 09,2020

Return on investment (ROI) is a financial ratio used to calculate the benefit an investor will receive in relation to their investment cost. It is most commonly measured as net income divided by the original capital cost of the investment. The higher the ratio, the greater the benefit earned.

Compare to traditional Reinforced Concrete building, what’s the advantages of BDiR Membrane structure construction?

► More favorable expense cost

The traditional RC construction needs lots of building materials labor cost, the membrane structure construction is in modules, with Eco light membrane and steel structures, more economic than traditional RC building expense cost.

► Shorter installation time

The traditional RC building needs several months even over the years time to build and decorate, need many laborers to finish the project. The BDiR Membrane structure buildings only need several labors to install in several days or weeks.

► Market trends

Unlike traditional RC buildings which require complex permits about land usage and easy to cause environmental problems, the Membrane Structure buildings are eco-friendly, cost-effective, portable, built to last. Thus it’s increasingly popular in the market.  

If you choose BDiR products, what’s the ROI will be? We will take a geodesic dome camp and glamping tent resort hotel for example to calculate the rough ROI for your reference, I hope that’s helpful for you to make a project plan and financial estimation. Let’s see!

 

Geodesic Dome Tents Project

 

If you have a project of 15 sets of 6m diameter  Geodesic Dome Tents for accommodations, 12m one   for reception center, 20m one for dining, bars, and   store, and the average operation days per year is 350  days, then the rough ROI will be:

 

 

 

 

1. The cost of construction: 146800$

0 depreciation within 2 years and 201$ daily operating cost including the expense of the main body of the tents, platforms, interior decoration, furniture.

Item

Number

Unit Price

Total Cost

6m Geodesic Dome Tents for Accommodation

15

6000$

90000$

12m Geodesic Dome Tents for Reception Center

1

10800$

10800$

20m Geodesic Dome Tents for Dining, Bar and Store

1

16000$

16000$

Power, water and other facilities

1

30000$

30000$

2. Operating Cost: 451360$/Year

This includes daily water and electricity charges, advertising and marketing spending, goods expense for restaurant, bar and store, and maintenance costs for hotel equipment and infrastructure.

Item

Revenue ratio

Utility bills

18%

Advertising

1%

Expenditure for restaurant, bar, and store

70%

Maintenance

1%

3. Employee wages: 135200$/Year

8 employees and the total expenses include salary and welfare, team-building activities and learning expenses.

Item

Number

Average Yearly Wage

Total Cost

Staff Wages

8

14400$

115200$

Holiday Bonus

8

2000$

16000$

Team-building activities

8

500$

4000$

4. Revenue: 884800$/Year

To receive 40 people at full capacity during most of the holidays and weekends, and the total operating days are 350 days per year with sparing 1 day per month for the hotel equipment maintenance.

Item

Number

Occupancy Rates

Average Unit Price

Daily Revenue

Total Revenue

Accommodation revenue

15

70%

128$

1408

492800$

Restaurant and bar revenue

40

70%

30$

840

294000$

Store Revenue

40

70%

10$

280

98000$

5. Profitability

It is due to begin to be profitable from the seventh month after the tents are officially put into operation.

Item

Operating Cost

Staff Wages

Estimated Revenue  

Gross Margin

Construction Cost

Net Profits

Average month profit

36730

11112

71456

23614

146800

-123186

The third month profits

110190

33337

219296

75769

146800

-71031

The six month profits

220379

66674

428736

141683

146800

-5117

The seventh month profits

257109

77786

500192

165297

146800

18497

The twelve month profits

446880

135200

862400

280320

146800

133520

 

Luxury Glamping Resort Projects

 

 

If you have a project of 10 sets of 42 square meter Luxury Camping Tents for  2 person, 5 sets of 72 square meter one for family, and 1 set of 115m diameter dome tent for reception center, 20m diameter one for dining, bars, and store, and the average operation days per year is 350 days, then the rough ROI will be:

 

 

 

 

 

 

1. Construction Cost: 475000$/Year

0 depreciation within 5 years and 260$ daily operating cost including the expense of the main body of the tents, platforms, interior decoration, furniture.

Item

Number

Unit Price

Total Cost

6*7=42sqm tented accommodation

10

20000$

200000$

6*12=72sqm tented accommodation

5

30000$

150000$

115m diameter dome tents for reception

1

45000$

45000$

20m diameter for restaurant, bar, and store

1

20000$

20000$

Power, water and other facilities

1

60000$

60000$

2. Operating Cost: 64148$/Year

This includes daily water, electricity charges, advertising and marketing spending, goods expense for restaurant, bar and store, and maintenance costs for hotel equipment and infrastructure.

Item

Revenue ratio

Utility bills

15%

Advertising

3%

Expenditure for restaurant, bar, and store

70%

Maintenance

2%

3. Employee wages: 202800$/Year

12 employees and the staff expenses include salary and welfare, team activities and learning expenses.

Item

Number

Average Yearly Wage

Total Cost

Staff Wages

12

14400$

637840$

Holiday Bonus

12

2000$

24000$

Team-building activities

12

500$

6000$

4. Revenue: 1732150$/Year

To receive 40 people at full capacity during most of the holidays and weekends, and the total operating days are 350 days per year with sparing 1 day per month for the hotel equipment maintenance.

Item

Number

Occupancy Rates

Average Unit Price

Daily Revenue

Total Revenue

2 people tents revenue

10

70%

268$

1876$

656600$

Family tents revenue

5

70%

398$

1393$

487550$

Restaurant and bar revenue

60

70%

30$

1260$

441000$

Store Revenue

60

70%

10$

420$

147000$

5. Profitability

It is due to begin to be profitable from the sixteenth month after the tents are officially put into operation.

Item

Operating Cost

Staff Wages

Estimated Revenue  

Gross Margin

Construction Cost

Net Profits

Average month profit

52738

16668

100178

30771

475000

-444229

The third month profits

158215

50005

300533

92313  

475000

-382687  

The six month profits

316429

100011

601066

184625

475000

-290375  

The twelve month profits

641648  

202800

1209040

364592  

475000

-110408  

The fifteenth month profits

791073

250027

1502664

461564  

475000

-13436

The sixteenth month profits

843811

266696

1602841.6

492335

475000

17335

The eighteenth month profits

949287

300033

1803196.8

553876

475000

78876

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