While the final price of the event remains the same, these two pricing models each have unique benefits.
Drawing up a BOE for members hosting an event provides a snapshot of what they can expect to pay for the day. Estimating the cost of the event is the key to both getting your member on board and providing transparency about the final bill.
However, there are two main types of event estimates that a club can present—inclusive pricing and plus-plus pricing. Plus-plus pricing lists taxes and gratuity separately while inclusive pricing presents the final amount the member will pay in one sum.
Plus-Plus Pricing
In plus-plus pricing, the BOE will list the base price—either per head, platter, or item—and will typically include the “++” symbol after the amount. For example, a wedding cost may be listed as “‘$85++ per person.” As noted above, the two plus symbols stand for taxes and gratuity.
There are several benefits to listing these two items separately. For one, both taxes and tips for the staff are based on a percentage. Sales taxes differ depending on your state and local laws, but will typically fall between six and eight percent. Gratuity ranges from 18 to 25 percent, depending on the club’s practices.
Either way, the ++ symbol acts as a reminder that the final price will rise in proportion to the base price.
Additionally, some states require event spaces to list gratuity separately on the bill for tax purposes. By allocating the amount specifically for tips, the number is not charged an additional sales tax.
Inclusive Pricing
In some cases, a member will prefer to see the final number they will pay for an event without having to do the math themselves. The inclusive pricing model protects against unexpected costs and avoids the confusion of the plus-plus method.
However, the amount given does include applicable taxes, and quite often, gratuity as well. This system is also ideal when the venue either doesn’t participate in tipped wages or would like to leave the tipping to the discretion of the member.
