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Re: [RC] re 'making money on a ride' - heidiThe ride fees are held down by two things. First, by how much we, the riders, are willing (or can afford) to pay. Second, most rides are put on by people who DO NOT EXPECT to make a "profit"* even if they do need a "positive cash flow"*, <snip> Definitions: *profit: Money left over after all expenses, including total cost of running the vehicles used, replacement of equipment, capital equipment (stock tanks etc.), fair wages for all concerned (for all planning time as well as the ride weekend), food, awards, advertising, association dues and whatever I have forgotten. * "positive cash flow": Money left over after the most important expenses have been paid. Usually does not include provision for vehicle replacement, lots of little expenses that do not make the RM's accounting procedures, and any wages for the RM and volunteers. Ed, this is the best way I've ever seen it put. We almost always had a good "positive cash flow" putting on rides--but it would be more than offset by vehicle repairs and depreciation, depreciation on any other "hardware" that we use (water tanks, etc.), any sort of working wage paid to us for our time, and DEFINITELY if we had to pay the help, other than the veterinarians! We did often chip in for gas money for key volunteers, but otherwise the help also worked for free. Just for a point of reference, we usually had 2 to 3 of our own vehicles involved (sometimes with some mega-mileage) and at least one horse trailer, we maintained a set of stock tanks and water barrels that were used primarily for rides, we had to have a water-hauling system (bed tank for pickup, small gasoline pump for sucking water out of streams, hoses, etc.), and so forth. Barrels get lost or trashed and have to be replaced, water tanks have seams leak and need repair, drain plugs go missing, etc. All that stuff adds up, even though it is nickel-and-dime stuff at the time that is not always thought of as a "ride expense." And when you do actual P&L statements, you have to consider the cost of having your money tied up in paraphernalia that you only use a few times a year. That stuff doesn't affect the "positive cash flow"--but it is very real in the actual sense of making a profit. Heidi ============================================================ I think home work is the key to having a healthy partner. ~ Steven Proe ridecamp.net information: http://www.endurance.net/ridecamp/ ============================================================
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