philippe willi // trekksoft ltd. jon fauver // trekksoft ltd
DESCRIPTION
Pricing in a Global Market Strategies for Value, Pricing and Commission, and Navigating Currency Risks. Philippe Willi // TrekkSoft Ltd. Jon Fauver // TrekkSoft Ltd. #ATWS-hashtag. Agenda. Session 1 Value & margin definitons with examples & controlling. Session 1 Feedback, Q & A. - PowerPoint PPT PresentationTRANSCRIPT
![Page 1: Philippe Willi // TrekkSoft Ltd. Jon Fauver // TrekkSoft Ltd](https://reader035.vdocuments.us/reader035/viewer/2022062409/56815123550346895dbf4042/html5/thumbnails/1.jpg)
Pricing in a Global MarketStrategies for Value, Pricing and Commission, and
Navigating Currency Risks
Philippe Willi // TrekkSoft Ltd.
Jon Fauver // TrekkSoft Ltd.
#ATWS-hashtag
![Page 2: Philippe Willi // TrekkSoft Ltd. Jon Fauver // TrekkSoft Ltd](https://reader035.vdocuments.us/reader035/viewer/2022062409/56815123550346895dbf4042/html5/thumbnails/2.jpg)
Agenda
Session 1
Value & margin definitons with examples & controlling
Session 1
Feedback, Q & A
Session 2
Commission, transaction costs and accepting online bookings/payments with examples
Session 2
Feedback, Q & A
Session 3
Currency risks for small & midsize companies & practical solutions
Session 3
Feedback, Q & A
![Page 3: Philippe Willi // TrekkSoft Ltd. Jon Fauver // TrekkSoft Ltd](https://reader035.vdocuments.us/reader035/viewer/2022062409/56815123550346895dbf4042/html5/thumbnails/3.jpg)
Session 1
Value & Margin Definitons with
Examples & Controlling
Pricing in a Global Market
![Page 4: Philippe Willi // TrekkSoft Ltd. Jon Fauver // TrekkSoft Ltd](https://reader035.vdocuments.us/reader035/viewer/2022062409/56815123550346895dbf4042/html5/thumbnails/4.jpg)
Definition of Value
Value for the Customer
Price paid for tour, trip or activity
VS customer experience
Tour Operator, Activity Provider
Contribution Margin on a tour, trip or activity
![Page 5: Philippe Willi // TrekkSoft Ltd. Jon Fauver // TrekkSoft Ltd](https://reader035.vdocuments.us/reader035/viewer/2022062409/56815123550346895dbf4042/html5/thumbnails/5.jpg)
Margin DefinitionSelling Price to Customer
(excl. VAT) all trip/tour related expenses
Contribution Margin 1
salaries & social insurances Contribution Margin 2
all other expenses Contribution Margin 3 /Cashflow/EBITDA*
*EBITDA = Earnings before interest, taxes, deprpeciation, amortization
![Page 6: Philippe Willi // TrekkSoft Ltd. Jon Fauver // TrekkSoft Ltd](https://reader035.vdocuments.us/reader035/viewer/2022062409/56815123550346895dbf4042/html5/thumbnails/6.jpg)
Concrete ExampleEuropean Tour Operator Company „Philippes European Adventure Experience“
Income Statement
Net Earnings (excl. VAT)
+ Travel Activities Switzerland+ Travel Activities Europe+ Add Ons+ Diverse Earnings- Commission to Sales Points- Commission to Credit Cards= Total Earnings
Trip/Tour Expenses (COGS*)
- Trip/Tour expenses- 3th party expenses- Commissions
= CONTRIBUTION MARGIN 1
*COGS= Cost of Goods Sold
![Page 7: Philippe Willi // TrekkSoft Ltd. Jon Fauver // TrekkSoft Ltd](https://reader035.vdocuments.us/reader035/viewer/2022062409/56815123550346895dbf4042/html5/thumbnails/7.jpg)
= CONTRIBUTION MARGIN 1
Salaries/ Social Insurance
- Salaries- Social Insurance- Pension Funds- Accident Insurance- Health Insurance- Taxes- Divers Personal Expenses
= CONTRIBUTION MARGIN 2
Concrete Example 2European Tour Operator Company „Philippes European Adventure Experience“
![Page 8: Philippe Willi // TrekkSoft Ltd. Jon Fauver // TrekkSoft Ltd](https://reader035.vdocuments.us/reader035/viewer/2022062409/56815123550346895dbf4042/html5/thumbnails/8.jpg)
= CONTRIBUTION MARGIN 2
- Rent- Maintenance- Insurances- Car Expenses - Duties - Office Supplies - Accounting Consulting - IT Expenses - Advertising Expenses - Representation Expenses - Interest, Expenses - Taxes
= CONTRIBUTION MARGIN 3 or CASH FLOW
Concrete Example 3European Tour Operator Company „Philippes European Adventure Experience“
![Page 9: Philippe Willi // TrekkSoft Ltd. Jon Fauver // TrekkSoft Ltd](https://reader035.vdocuments.us/reader035/viewer/2022062409/56815123550346895dbf4042/html5/thumbnails/9.jpg)
Attention!!!There are two ways to look at your income (earnings):
Revenue by trip date sold (accounting by current cashflow)
Revenue by trip departure date
This is one is best for accounting (refunds etc.)
![Page 10: Philippe Willi // TrekkSoft Ltd. Jon Fauver // TrekkSoft Ltd](https://reader035.vdocuments.us/reader035/viewer/2022062409/56815123550346895dbf4042/html5/thumbnails/10.jpg)
Company Contribution Margin
Trip 1 Trip 2
Trip 3
Trip 4 Trip 5Trip 6
Trip 7 Trip 8
Trip 9+
+
+
+
+
+
Combined trip margins = Company Contribution Margin
![Page 11: Philippe Willi // TrekkSoft Ltd. Jon Fauver // TrekkSoft Ltd](https://reader035.vdocuments.us/reader035/viewer/2022062409/56815123550346895dbf4042/html5/thumbnails/11.jpg)
Implementation of Contribution Margins
At the trip/tour level (operational) you define Contribution Margin 1 as a goal per trip (for example 25 %)
![Page 12: Philippe Willi // TrekkSoft Ltd. Jon Fauver // TrekkSoft Ltd](https://reader035.vdocuments.us/reader035/viewer/2022062409/56815123550346895dbf4042/html5/thumbnails/12.jpg)
Implementation of Contribution Margins
At the company level (strategical) you define a target Company Contribution Margin 1. This is the combined result of all the tours/trips of your company.
![Page 13: Philippe Willi // TrekkSoft Ltd. Jon Fauver // TrekkSoft Ltd](https://reader035.vdocuments.us/reader035/viewer/2022062409/56815123550346895dbf4042/html5/thumbnails/13.jpg)
Implementation of Contribution Margins
On a company level (strategical) you define a target Contribution Margin 3
(for example 8 to 12 %) Contribution Margin 3 = Cashflow = What is
left in your bank account.
![Page 14: Philippe Willi // TrekkSoft Ltd. Jon Fauver // TrekkSoft Ltd](https://reader035.vdocuments.us/reader035/viewer/2022062409/56815123550346895dbf4042/html5/thumbnails/14.jpg)
Controlling of Margins
Contribution margin 1 Trip/Tour Level
Contribution margin 2 company
Contribution margin 3 (Cashflow) company
FINAL CHECK ON YOUR BANk ACCOUNT (OWNER)
Trip Controlling/Trip Report (all trip/tour related income and expenses are controlled on a excel sheet)
Accounting, Bookkeeping from a speficic period
Accounting, Bookkeeping from a speficic period
OP
ER
AT
ION
AL
ST
RA
TE
GIC
AL
![Page 15: Philippe Willi // TrekkSoft Ltd. Jon Fauver // TrekkSoft Ltd](https://reader035.vdocuments.us/reader035/viewer/2022062409/56815123550346895dbf4042/html5/thumbnails/15.jpg)
Contribution Margin on a Trip/Tour Level
-Most trips have both variable and fixed costs that result in an increasing contribution margins with an increasing amount of PAX
-Some trips (boats) have jumping contribution margins. This occurs when a trip reaches a maximum number of seats and then has a jump in fixed costs to start a new one.
- It is important to define a corridor of contribution margins which makes sense for your industry, company, or product.
GOAL: Contribution Margin 1
> 25 %
GOAL: Contribution Margin 1
> 65 %
To
ur O
pe
rator
Activity
Pro
vide
r
![Page 16: Philippe Willi // TrekkSoft Ltd. Jon Fauver // TrekkSoft Ltd](https://reader035.vdocuments.us/reader035/viewer/2022062409/56815123550346895dbf4042/html5/thumbnails/16.jpg)
River Rafting Contribution Margin
Rafting: - 60.56 % to 45.65 %
(fix costs and „jumping“ contribution margins)
![Page 17: Philippe Willi // TrekkSoft Ltd. Jon Fauver // TrekkSoft Ltd](https://reader035.vdocuments.us/reader035/viewer/2022062409/56815123550346895dbf4042/html5/thumbnails/17.jpg)
Canyoning Contribution Margin
Canyoning: 37.63 % to 63.66 %
![Page 18: Philippe Willi // TrekkSoft Ltd. Jon Fauver // TrekkSoft Ltd](https://reader035.vdocuments.us/reader035/viewer/2022062409/56815123550346895dbf4042/html5/thumbnails/18.jpg)
Ropes Course Contribution Margin
Ropes Course: - 332.85 % to 47.09% (very high fix costs)
![Page 19: Philippe Willi // TrekkSoft Ltd. Jon Fauver // TrekkSoft Ltd](https://reader035.vdocuments.us/reader035/viewer/2022062409/56815123550346895dbf4042/html5/thumbnails/19.jpg)
Night Sledding Contribution Margin
Night Sledding: 17.08 % to 38.74 %
![Page 20: Philippe Willi // TrekkSoft Ltd. Jon Fauver // TrekkSoft Ltd](https://reader035.vdocuments.us/reader035/viewer/2022062409/56815123550346895dbf4042/html5/thumbnails/20.jpg)
Guided Bus tour Florence to Interlaken
Guided Bus tour Florence 2 Interlaken, 31.91 %
![Page 21: Philippe Willi // TrekkSoft Ltd. Jon Fauver // TrekkSoft Ltd](https://reader035.vdocuments.us/reader035/viewer/2022062409/56815123550346895dbf4042/html5/thumbnails/21.jpg)
What Price is Right?Your strategical contribution margin will define the price you need to charge for your product. With most T&A products it will be a mix of high and low margin trips.
To reach your contribution margin you must set a price that:- Gives the customer the needed value- Holds up against competition- Covers your costs- Covers your commission
Low price & High numbers – High price & Low numbers – Sales – Price Dumping – Yield Management – Marketing Costs – Group Buying
Today's Global Market place offers a variety of opportunities and risks for pricing. We will address Commissions, Online sales and Currency risks in sessions 2 & 3.
![Page 22: Philippe Willi // TrekkSoft Ltd. Jon Fauver // TrekkSoft Ltd](https://reader035.vdocuments.us/reader035/viewer/2022062409/56815123550346895dbf4042/html5/thumbnails/22.jpg)
Feedback Session 1
1)How do you calculate your contribution margins?
2)How do you decide if a trip generates a value (lucrative) for you or not?
3)What is your goal as a contribution margin 1? (25 %, 50 % or 75%)
![Page 23: Philippe Willi // TrekkSoft Ltd. Jon Fauver // TrekkSoft Ltd](https://reader035.vdocuments.us/reader035/viewer/2022062409/56815123550346895dbf4042/html5/thumbnails/23.jpg)
Session 2
Commissions Transaction Costs &
Accepting Online Bookings/Payments
Pricing in a Global Market
![Page 24: Philippe Willi // TrekkSoft Ltd. Jon Fauver // TrekkSoft Ltd](https://reader035.vdocuments.us/reader035/viewer/2022062409/56815123550346895dbf4042/html5/thumbnails/24.jpg)
Bookings, Bookings, Bookings
Direct Lcoal Sales Agent Own Online shop
Usually Late bookingsCustomer pays cash or by other systems. No Commission Possible CC fees
Customer pays agent. Commission for agent (can be defined) Limited control of booking
Early Reservation Confirmed booking Customer pays by CC Booking engine & CC fees.
![Page 25: Philippe Willi // TrekkSoft Ltd. Jon Fauver // TrekkSoft Ltd](https://reader035.vdocuments.us/reader035/viewer/2022062409/56815123550346895dbf4042/html5/thumbnails/25.jpg)
Margin DefinitionSelling Price to Costumer (excl. VAT) - all trip/tour related
expenses= contribution margin 1
- salaries & social insurances = contribution margin 2
- all other expenses (rent, marketing etc.) = contribution margin 3
/Cashflow/EBITDA
Commission and Transaction costs reflect directly in your Contribution Margin 1
![Page 26: Philippe Willi // TrekkSoft Ltd. Jon Fauver // TrekkSoft Ltd](https://reader035.vdocuments.us/reader035/viewer/2022062409/56815123550346895dbf4042/html5/thumbnails/26.jpg)
Total Commision Paid Outor other
Marketing Costs
Average Acquisition Cost /
Customer
Define Your Average Basket
Total Earnings NET
(Trips, Tours)
Total Passengers
Example (Tour Operator Company): Net Earnings = EUR 2 653 302.41 PAX = 14 910
Average Basket = EUR 183.93
Commission offered to agent = 10 %
Average Acquisiton Cost per Costumer = EUR 18.40
Average Basket
Average Basket
![Page 27: Philippe Willi // TrekkSoft Ltd. Jon Fauver // TrekkSoft Ltd](https://reader035.vdocuments.us/reader035/viewer/2022062409/56815123550346895dbf4042/html5/thumbnails/27.jpg)
Acquisiton Cost per Costumer Knowing your acquisition cost / customer helps
you make smart decisions. Example: Is a Google Ad Words Campaign cost
effective?
= a conversion in google is defined by you
![Page 28: Philippe Willi // TrekkSoft Ltd. Jon Fauver // TrekkSoft Ltd](https://reader035.vdocuments.us/reader035/viewer/2022062409/56815123550346895dbf4042/html5/thumbnails/28.jpg)
Where to sell online – 3 examples
+ powerful distribution
- very expensive (15%-30%)
+ potential new costumers
- extremely expensive
Marketplaces Accepting online Payments
Groupon & Co
+ good transactions costs
- WORK for YOU
![Page 29: Philippe Willi // TrekkSoft Ltd. Jon Fauver // TrekkSoft Ltd](https://reader035.vdocuments.us/reader035/viewer/2022062409/56815123550346895dbf4042/html5/thumbnails/29.jpg)
Marketplaces Increase brand awareness and are important for
your presence in multiple distribution channels GetYourGuide, Gitsy etc. = normally high
commission rates (15% to 30 %) Too expensive to use as a booking engine
because of the commission rates
Calculation Example: Selling Price: EUR 100.-Comission (25 %): EUR 25.-Net Selling Price after comissions: EUR 75.-
- if you have low contribution margins you start to loose money
![Page 30: Philippe Willi // TrekkSoft Ltd. Jon Fauver // TrekkSoft Ltd](https://reader035.vdocuments.us/reader035/viewer/2022062409/56815123550346895dbf4042/html5/thumbnails/30.jpg)
Group Buying SitesGroupon & Co
You sell coupons online for min. 50 % off and pay a commission to the site (groupon etc.) of between 30 % and 50 % = 60%-80% loss.
Expensive marketing and only make sense if you can generate returning costumers.
Calculation Example: Selling Price: EUR 100.-Deduction for costumer (50 %): EUR 50.-Kick Back to Groupon & Co (40 %): EUR 20.-Net Selling Price: EUR 30.-
It is almost impossible to make money. This is
marketing to attract new or repeat costumers.
![Page 31: Philippe Willi // TrekkSoft Ltd. Jon Fauver // TrekkSoft Ltd](https://reader035.vdocuments.us/reader035/viewer/2022062409/56815123550346895dbf4042/html5/thumbnails/31.jpg)
Direct Online Bookings & Accepting Payments Online
PayPal Stripe Moneybookers Lots of country/payout limitations Your own credit card aquirer contracts and
PSP contracts (Payment Service Provider)
THIS IS THE BEST METHOD TO INCREASE ONLINE SALES WITH AFFORDABLE AQUISITION AND TRANSACTION COSTS.
![Page 32: Philippe Willi // TrekkSoft Ltd. Jon Fauver // TrekkSoft Ltd](https://reader035.vdocuments.us/reader035/viewer/2022062409/56815123550346895dbf4042/html5/thumbnails/32.jpg)
How Online Payments Work
VISA / Mastercard /American Express /Country specific payment options
Credit card acquirer, commission on every credit card transaction
Payment Service Provider (PSP), fixed amount per transaction and monthly fix costs
YOU
1.2 % to 3 % 0.1 to 0.3 USD
PayPal
2.9 % + 30 cents
Stripe.com
2.9% + 30 cents
BOOKING ENGINE
Ow
n C
C co
ntra
ct
No
CC
co
ntra
ct
![Page 33: Philippe Willi // TrekkSoft Ltd. Jon Fauver // TrekkSoft Ltd](https://reader035.vdocuments.us/reader035/viewer/2022062409/56815123550346895dbf4042/html5/thumbnails/33.jpg)
Problem with Stripe, PayPal etc.
Often limited by country & currency restrictions. Have a look at www.paypal.com/worldwide
![Page 34: Philippe Willi // TrekkSoft Ltd. Jon Fauver // TrekkSoft Ltd](https://reader035.vdocuments.us/reader035/viewer/2022062409/56815123550346895dbf4042/html5/thumbnails/34.jpg)
Online/Offline Payments
Offline (POS/ over the counter/Telephone)= 76.40 %= 76.40 %
Online / Mobile= 23.60 %= 23.60 %
Most bookings are still offline
Fast increasing!!
*
* www.trekksoft.com // dynamic Graph out of over 300 000 PAX bookings
![Page 35: Philippe Willi // TrekkSoft Ltd. Jon Fauver // TrekkSoft Ltd](https://reader035.vdocuments.us/reader035/viewer/2022062409/56815123550346895dbf4042/html5/thumbnails/35.jpg)
T&A operators are not online T&A operators are not onlineLes than 10% of Tour & Activity (T&A) providers do have a web presence (far less than hotels or airlines) Customers are onlineOnline and mobile bookings are increasing drastically. 10–15% in 2012 and growing. Solutions are expensiveExisting online booking solutions are too expensive and complicated. (contracts, high set-up costs, commissions and expensive payment gateways)
![Page 36: Philippe Willi // TrekkSoft Ltd. Jon Fauver // TrekkSoft Ltd](https://reader035.vdocuments.us/reader035/viewer/2022062409/56815123550346895dbf4042/html5/thumbnails/36.jpg)
Pre Payments Travel Bond Regulations exist to protect
consumers from the risk of paying in advance for travel services.
Marketplaces
Groupon & Co
Groupon & Co Accepting online Payments
Pay out after trip
Pay out after trip
Realtime pay outs
Influences your cash
management
![Page 37: Philippe Willi // TrekkSoft Ltd. Jon Fauver // TrekkSoft Ltd](https://reader035.vdocuments.us/reader035/viewer/2022062409/56815123550346895dbf4042/html5/thumbnails/37.jpg)
External payment gateway Integrated payment gateway
Low commission(5–10%)
High commission(15–40% or extremely high initial costs)
Point of sales of tour operators
Agents / Travel companies
Review platforms (Tourradar, TripAdvisor, etc.)
Online Payments Overview
*
* payouts based on transaction date, not trip date
* PayOut based on credit card turnover date
![Page 38: Philippe Willi // TrekkSoft Ltd. Jon Fauver // TrekkSoft Ltd](https://reader035.vdocuments.us/reader035/viewer/2022062409/56815123550346895dbf4042/html5/thumbnails/38.jpg)
What do today’s Tour and Activity companies need to succeed in the global online
marketplace
?
![Page 39: Philippe Willi // TrekkSoft Ltd. Jon Fauver // TrekkSoft Ltd](https://reader035.vdocuments.us/reader035/viewer/2022062409/56815123550346895dbf4042/html5/thumbnails/39.jpg)
Intuitive booking engine
TrekkSoft Ltd. | Company Presentation 39
![Page 40: Philippe Willi // TrekkSoft Ltd. Jon Fauver // TrekkSoft Ltd](https://reader035.vdocuments.us/reader035/viewer/2022062409/56815123550346895dbf4042/html5/thumbnails/40.jpg)
Integrated Social Media
![Page 41: Philippe Willi // TrekkSoft Ltd. Jon Fauver // TrekkSoft Ltd](https://reader035.vdocuments.us/reader035/viewer/2022062409/56815123550346895dbf4042/html5/thumbnails/41.jpg)
Powerful Admin Tools
![Page 42: Philippe Willi // TrekkSoft Ltd. Jon Fauver // TrekkSoft Ltd](https://reader035.vdocuments.us/reader035/viewer/2022062409/56815123550346895dbf4042/html5/thumbnails/42.jpg)
Mobile Bookings
In the very near future (if not already), if you are not bookable on a mobile device you will be missing a huge part of the travel market.
![Page 43: Philippe Willi // TrekkSoft Ltd. Jon Fauver // TrekkSoft Ltd](https://reader035.vdocuments.us/reader035/viewer/2022062409/56815123550346895dbf4042/html5/thumbnails/43.jpg)
Case Study: TrekkSoft Total online bookings since 2010
CHF 8.5m turnover300k passengers
2012CHF 5.2m turnover 200k passengers 70 T&A operators
2013CHF 10m turnover 400k passengers 170 T&A operators
![Page 44: Philippe Willi // TrekkSoft Ltd. Jon Fauver // TrekkSoft Ltd](https://reader035.vdocuments.us/reader035/viewer/2022062409/56815123550346895dbf4042/html5/thumbnails/44.jpg)
Pricing TrekkSoft Low commission
Free software as a serviceCommission of 6% incl. credit card and PSP commission on online transactionsOffline, over the counter and POS transactions are free of charge
![Page 45: Philippe Willi // TrekkSoft Ltd. Jon Fauver // TrekkSoft Ltd](https://reader035.vdocuments.us/reader035/viewer/2022062409/56815123550346895dbf4042/html5/thumbnails/45.jpg)
Summary TrekkSoftWebsiteCustomizable website with integrated CMSOnline booking solutionSimple booking engine for online, mobile and offline bookings worldwidePayment gatewayIntegrated payment gateway (no set-up or fix costs, no PSP or CC contracts necessary)FunctionalityAdvanced features for bigger tour operators like: tour mgmt., trips and capacity mgmt. incl. yield-mgmt. prices
![Page 46: Philippe Willi // TrekkSoft Ltd. Jon Fauver // TrekkSoft Ltd](https://reader035.vdocuments.us/reader035/viewer/2022062409/56815123550346895dbf4042/html5/thumbnails/46.jpg)
Who’s Using TrekkSoft?
![Page 47: Philippe Willi // TrekkSoft Ltd. Jon Fauver // TrekkSoft Ltd](https://reader035.vdocuments.us/reader035/viewer/2022062409/56815123550346895dbf4042/html5/thumbnails/47.jpg)
Feedback Session 21)How do you decide if a advertising platform ir
CPC/CPM campaign makes sense? Do you calculate an acquisition cost per costumer and how?
2)How do you reach your costumers? Online or Offline. Which online which platforms do you use?
3)How much commission are you willing to pay to your Agents or Online Booking Engine?
![Page 48: Philippe Willi // TrekkSoft Ltd. Jon Fauver // TrekkSoft Ltd](https://reader035.vdocuments.us/reader035/viewer/2022062409/56815123550346895dbf4042/html5/thumbnails/48.jpg)
Session 3Currency Risks for
small & midsize companies + practical
solutions
Pricing in a Global Market
![Page 49: Philippe Willi // TrekkSoft Ltd. Jon Fauver // TrekkSoft Ltd](https://reader035.vdocuments.us/reader035/viewer/2022062409/56815123550346895dbf4042/html5/thumbnails/49.jpg)
Accepting different currencies
YOU
USD
EUR
AUD
GBP
CHF CAD
INR
![Page 50: Philippe Willi // TrekkSoft Ltd. Jon Fauver // TrekkSoft Ltd](https://reader035.vdocuments.us/reader035/viewer/2022062409/56815123550346895dbf4042/html5/thumbnails/50.jpg)
Definition of Currency Risk
YOU (CHF)
YOU(CHF)
Costumer(EUR)
Suppliercosts(CHF)Pays in EUR Pays in CHF
Problem 1
Problem 2
Costumer(EUR)
Suppliercosts(CHF)Pays in CHF Pays in CHF
Co
nve
rt Mo
ne
yT
oo
Exp
en
sive
= converts money
![Page 51: Philippe Willi // TrekkSoft Ltd. Jon Fauver // TrekkSoft Ltd](https://reader035.vdocuments.us/reader035/viewer/2022062409/56815123550346895dbf4042/html5/thumbnails/51.jpg)
YOU (CHF)
Costumer(EUR)
Suppliercosts(CHF)Pays in EUR Pays in CHF
Co
nve
rt Mo
ne
yProblem 1: Operator accepts Forex and
bears the risk of exchange.
Make a few large exchanges instead of lots of small ones.
Use an intermediary to get better currency rates (www.wechselstube.ch)
![Page 52: Philippe Willi // TrekkSoft Ltd. Jon Fauver // TrekkSoft Ltd](https://reader035.vdocuments.us/reader035/viewer/2022062409/56815123550346895dbf4042/html5/thumbnails/52.jpg)
Problem 1: Operator Currency Exchange
Savings of CHF 6,064.88 / USD 6,423.30 in 2012
![Page 53: Philippe Willi // TrekkSoft Ltd. Jon Fauver // TrekkSoft Ltd](https://reader035.vdocuments.us/reader035/viewer/2022062409/56815123550346895dbf4042/html5/thumbnails/53.jpg)
Instead of making a lot of small transactions Bus2alps made a few large ones and received better currency exchange rates.
Problem 1: Operator Currency Exchange
![Page 54: Philippe Willi // TrekkSoft Ltd. Jon Fauver // TrekkSoft Ltd](https://reader035.vdocuments.us/reader035/viewer/2022062409/56815123550346895dbf4042/html5/thumbnails/54.jpg)
Check out www.wechselstube.ch for more info or look for another intermediary in your country – using intermediaries instead of banks saves money.
Make a yearly plan how much money you will need to convert and AVOID small conversions.
Problem 1: Operator Currency Exchange
![Page 55: Philippe Willi // TrekkSoft Ltd. Jon Fauver // TrekkSoft Ltd](https://reader035.vdocuments.us/reader035/viewer/2022062409/56815123550346895dbf4042/html5/thumbnails/55.jpg)
Problem 2: Guest Currency Exchange
YOU(CHF)
Costumer(EUR)
Suppliercosts(CHF)Pays in CHF Pays in CHF
To
o E
xpe
nsive
= convert money
Depending on your currency, forcing your customer to convert their money moves the risk from you to them. However, you run the risk of becoming too expensive and pricing yourself out of the market.
Besides optimizing costs, contribution margins and prices you can`t do
anything about this problem.
![Page 56: Philippe Willi // TrekkSoft Ltd. Jon Fauver // TrekkSoft Ltd](https://reader035.vdocuments.us/reader035/viewer/2022062409/56815123550346895dbf4042/html5/thumbnails/56.jpg)
Feedback Session 3
1) What is your experience with currency risks?
2) How do you minimize your currency risks and optimize your.
3) In the global market there are winners and losers in the currency game? Which group do you belong to?
![Page 57: Philippe Willi // TrekkSoft Ltd. Jon Fauver // TrekkSoft Ltd](https://reader035.vdocuments.us/reader035/viewer/2022062409/56815123550346895dbf4042/html5/thumbnails/57.jpg)
Thank you for your time!Safe Travels
Philippe Willi // TrekkSoft Ltd.
Jon Fauver // TrekkSoft Ltd.