How does Thynk calculate costs and contribution margin on booking products and events?
By Thynk· Published · Updated
Each booking product, combo product and booking event has a Cost Overview section. Total Cost is the unit or combo cost times guests and quantity, or the hourly function space cost times the hours held, and Contribution Margin is the sales price excluding tax minus total cost.
Full answer
Thynk shows the cost and profit behind everything you sell on a booking, so sales and catering teams can see the margin on each line and your analytics stay accurate. Open any booking product, combo product or booking event after saving it and scroll to the Cost Overview section, where help texts (the i icons) explain every field.
- Booking products: the Unit Cost is set up by your Thynk Admin, and Total Cost = Unit Cost × Guests × Quantity.
- Combo products: the Combo Cost is built automatically from the costs of the individual combo items, and Total Cost = Combo Cost × Guests × Quantity.
- Booking events: costs come from the function space, which your admin sets up with a Unit Cost per Hour for hourly rentals or a Fixed Cost per event. With hourly pricing, Total Cost = Unit Cost per Hour × the hours you hold the space.
In every case, Contribution Margin = Sales Price Excl Tax minus Total Cost. It can be negative, for example when you include a complimentary item that still carries a cost, which makes concessions easy to spot. If you switch a booking product's Pricing Type between Per Guest and Per Item, update its Unit Cost at the same time so the margin stays accurate.
Learn more in the Thynk University Events course.
- Applies to
- Sales & Catering, Conference & Events, Finance