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Add your own markup to an invoice item

Comments

12 comments

  • Brendan Lyshe

    Will something like this become available on packages within direct group booking pages? It would be nice to make the convenience fee invisible for group bookings.

    -1
  • Alan

    Hi Brendan! While I can't predict for sure that we'll introduce this specifically for group booking packages and add-ons, I will say that you can currently enable Group Funds to help with your concern.

    With Group Funds, you can turn off convenience fees and add your markup (and enough to cover processing fees) directly to the package price, and when the payment hits your Group Funds balance, you can then withdraw your markup and pay your suppliers all from that balance, without showing fees or markup to your clients.

    You can learn more here: https://help.traveljoy.com/hc/en-us/articles/4411031348884-Collect-group-funds-to-instantly-pay-suppliers

    1
  • Brendan Lyshe

    So with this method, the mark-ups will have to be added after they book a group package?

    0
  • Alan

    Hi Brendan! The markup would be added to the price of the package when you create the group booking page. 

    For example, if a package is $500 and you'd like to add $22.80 for fees and a $30 markup, you'd price the tour at $552.80 instead of $500. 

    This is a bit of a workaround that we hope to improve in the future, so this advice is designed to help bridge the gap until we're able to make this more like the experience in the guide. 

    -1
  • Britney C.

    I am not given the option to add a markup to my group booking page, can you tell me how to get this to appear?

    0
  • Alan

    Hi Britney! Please see my answer above for Brendan, as this addresses the same issue. 

    0
  • Yashanda Bennett

    Hey Travel Joy Team! 

    I hope everyone is doing great, when adding your Mark-up to a Group Page will part of the money go to the Supplier and the other half go to your account? If you're paying the Supplier directly?

    0
  • Caitlin Bennett

    Hi Yashanda,

    Thank you for raising this question! As TravelJoy does not directly pay your supplier, you won't have to worry about your markup ending up somewhere you didn't plan. If creating a Group Booking Page (direct), you can have the funds go directly to your bank account or gather them in group/trip funds. If using our funds feature, you can withdraw your markup at any time. You can learn more here: https://help.traveljoy.com/hc/en-us/articles/4408792671508-Pay-your-suppliers-and-withdraw-your-markup-from-trip-funds-or-group-funds

    0
  • JaWana Travel?

    Do i have to pay additional processing fees for the withdrawal of funds, that already paid a processing fee to get into the trip funds?

    0
  • Alan

    Hi JaWana Travel! You won't pay any fees when using the money in your Funds balance. This includes withdrawing the balance, as well as paying suppliers from the balance using virtual cards or wire transfers.

    1
  • Heidi Theis

    Alan in your calculation above: https://help.traveljoy.com/hc/en-us/articles/4408792352532/comments/4723890689684, I'm confused about your calculations would you kindly share your formula for how you arrived at $22.80? It worked out to be $33.15 net mark-up after fees, but as you add a fee buffer, the fee amount goes up, and I'm so far removed from my Algebra lessons, that I can't figure this one out.

    Thanks! 

    0
  • Alan

    Hi Heidi!

    It looks like I originally calculated the processing fees only on the original $500. When calculating for a charge of $530, I get $23.15. However, neither of these tells the whole story. 

    As you've mentioned, it's very complicated to reverse-engineer a theoretical "buffer" to build in the convenience fee since the processing fees will apply to the buffer itself.

    This is a question we've received a number of times from folks, so I I worked with ChatGPT this afternoon and came up with this formula, which appears to work:

    Initial Selling Price + Markup + x - Processing Fee = Desired Amount

    In this case, "x" is the "buffer," so:

    $500 + $30 + x - Processing Fee = $530

    That part's pretty straightforward, but here's where it gets a bit complicated. The processing fee will apply to the full charge amount, including the buffer, which can be written out like this:

    Processing Fee = 4.5% * ($500 + $30 + x) + 30 cents

    When you simplify all the known amounts in that formula, you get $24.15, so:

    Processing Fee = $24.15 + (4.5% * x)

    Going back to the original equation, let's remove the initial $530 from both sides, and move the remaining dollar amount to the right side of the equation:

    x - (4.5% *x) = $24.15

    Simplifying the left side would give us a value of .955 * x because:

    x - (4.5% * x) = x - (.045 * x) = .955x

    With a final equation of:

    .955x = $24.15

    This works out to $25.30, so the "buffer" would be $25.30, for a total price of $555.30

    Indeed, when you calculate the processing fees on $555.30 based on 4.5% + 30 cents, you get total processing fees of $25.29 -- one penny off, as close as we can come to getting it exactly right. 

    I know this is certainly more algebra than anyone wanted today! 😊 That said, it was a helpful exercise for me to walk through as well, as we've had a few folks insist over the years that there must be a very simple formula. This will certainly help us explain the power of the convenience fee button a little more clearly.

    If you have any further questions, don't hesitate to let us know! 

    0

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