Return on Investment

September 15,2020

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