Retreat Budgeting: 5 Commonly Overlooked or Underestimated Costs
Retreat Budgeting: 5 Commonly Overlooked or Underestimated Costs
Whether you are a first-time host or have hosted multiple retreats, it is not always easy to plan for every scenario and the price it has on your retreat. No matter your experience, how organized you are or if you have planned every last detail, the inevitable hidden costs, (which are commonly overlooked or underestimated,) tend to creep up along the way.
Sometimes learning the hard way is the best way but does not have to be the only way. I am sharing all of the lessons (some expensive) that I have learned hosting retreats over the years. I am sharing some of the common oversights related to retreat budgets and valuable insights into strategies to account for the harder-to-estimate line items, such as your own valuable time, so that you can hit the ground running and host profitable retreats of your own.
The most common mistake I see first-time retreat leaders make:
Not factoring in an overage to cover unexpected or “emergency” expenses. I always tell my clients to add 10-15% to their total budget for emergency expenses. Anything can happen, prepare for it the best you can.
I have struggled with rental car costs in the past. I have a business account with Avis, and I get very detailed quotes, and I prepay. No matter which country I am in or which company I use, there is always a bill when I get home!
The other big one is having solid contracts. I normally have a photographer and chef on staff at my retreats. We work together and create detailed agreements. I highly recommend you have clear and solid contracts with any of your team members. There have been cases where my photographer needs to rent additional equipment, or my chef needs to run out and do some extra shopping. Besides lens fees or extra food costs, you could have checked bags or additional fuel charges for your team that you weren’t anticipating.
Mistakes even veteran retreat leaders often don’t quite get right:
Poor return on investment (ROI) – most retreat leaders underpay themselves because they underestimate the amount of admin work, scouting, and advertising that their retreat will require.
Time management is a huge task for any entrepreneur – figuring out how long it takes to do the admin and behind-the-scenes tasks is not east. Maintaining your email list and client management software, doing your bookkeeping, scouting your retreat locations, working with retreat centers, etc. all require an investment of your time.
These are things that don’t spring to mind when you first consider running retreats but can actually end up taking more time than planning your schedule or spending time in-person with your clients during your retreat.
Figuring out your time investment can be hard, but there are ways to do it so that you pay yourself an appropriate hourly wage. Some of this comes with experience, and that’s why it’s an area I focus on in mentoring other retreat leaders.
It’s important to make sure that you’re compensated fairly for your time. Otherwise, you’re going to feel depleted and experience burnout.
Retreat center contracts usually outline costs in a pretty detailed, formulaic way, but the top accommodation-related costs that people often miss because they are not necessarily explicitly included in standard contracts are:
Retreat centers generally have great processes and contracts in place since they are in the business of finding hosts and taking care of logistics on their behalf. Their processes tend to be streamlined, organized, and easy to digest.
However, if you are contracting with a newer retreat center, working with one that has a very “a la carte” pricing structure, or renting space in a venue that’s not a traditional retreat center, there can be a lot of hidden costs to watch out for. These can be related to cleaning, transportation services, excursions, and any surcharges that might be added to your bill automatically or under certain circumstances.
Travel Costs Related to Scouting Locations:
Even if you are working with good partners, your contracts are clear, and nothing unexpected unfolds, it is always a good idea to scout your locations and activities before you bring your guests along for the ride. Places do not always look as good as they do online, reviews can be misleading, and some off-site excursions can turn out to be a disaster.
My travel costs for scouting need to be covered, and also, I never like to arrive or depart at the same time as my guests. I think the energy is not as good – I like to get there, get a feel for the area, map out where we are going to eat and hold workshops, and hang out.
In the past, I have been able to negotiate an early check-in, sometimes with a fee, sometimes not. And in my budget, I add an extra night’s accommodation, either at the beginning or the end of my stay, or both.
Fees and commissions for payments and receipts:
Credit card fees are easy to estimate but can get lost in the shuffle. I normally add 3% to all of my prices, so that I am not losing money on any financial transactions that involves a credit card payment.
If you are working with advertising platforms, you may also incur a 10%-15% commission fee on bookings through them, so make sure this is accounted for as well.
If you are running Facebook ads or other traditional advertising, add this as a line item to your budget as well. It can get really expensive, especially if you hire someone to do it, so set a budget and stick to it..
Start small:
Money is a hang up for a lot of people – it can be overwhelming, anxiety-provoking, and no one really likes to talk about it.
Always being willing to be a student and learning to do better next time is so important. If you are new to running retreats, find mentors or communities where you can ask for advice.
Start small – with a local destination and smaller group. Be flexible and do not panic if something does not go as planned – you are probably the only one who noticed!
Need help with budgeting? Check out our host services.
Images by Personal Branding Maven Elise Kutt at Mod Bettie Portraits
My name is Anna VanAgtmael, and I am a certified yoga instructor with a passion for yoga, travel, and connecting with others.
I believe in trying everything once. My values lie in collecting memories over things. Though we desire adventure and authentic experiences, naturally our fear holds us back.
My ambition is to inspire and encourage you to unmask your fears and jump into the unknown.
Anna VanAgtmael | Yoga Enthusiast | Travel Designer