Formula for calculating the fair price of a hookah smoking session based on lounge parameters.

  Greetings to all owners and managers of shisha lounges!

  When opening a hookah lounge, an important aspect is proper pricing. The price of a hookah will not only attract customers, but also ensure the profitability of the establishment. In this article, we will look at the key parameters for calculating the cost of a hookah and offer a formula that will help you choose the price.

Defining parameters

1. Cost of ingredients

The key components of hookah are tobacco and coals. It is necessary to take into account not only the purchase price, but also the average amount used per hookah.

2. Equipment costs

Investments in hookah and related equipment (hookahs, flasks, heat keepers, etc.) are also worth considering. You can calculate depreciation on equipment by dividing its cost by its service life.

3. Renting premises

Rental costs vary depending on the location and size of the lounge.These costs should be distributed among the number of hookahs served per month.

4. Salary

Employee salaries constitute a significant portion of expenses.Consider how many employees serve guests and how many hookahs they can give away per shift.

5. Margin

This is the added value you want to achieve. It makes up a large percentage of the cost of prices and varies depending on the region or country.

Calculation formula

The price of a hookah is made up of: (Cost of ingredients) + (Equipment costs) + (Rent of premises) + (Wages) × (Margin)

Calculation example

 Let’s assume that the cost of ingredients for one hookah is 200-250 rubles (we take into account the average price of all tobacco), depreciation on equipment is 100 rubles, rent for a hookah is 200 rubles, labor costs for a hookah are 200 rubles, and the desired margin is 40%.

Fair price = (250 + 100 + 200 + 200) × (1 + 1) = 750 × 2 = 1500 rubles.

Calculating a fair price for a hookah is an important process that requires taking into account many factors. Using the proposed formula, hookah lounge owners can confidently set prices, attracting customers and ensuring a profitable business. With the right approach to pricing, you can create an attractive offer for your guests.

Here is what I would like ask you to do in the comments section (business discussion):

• Tell us what parameters you take into account when setting the price of a hookah in your lounge?

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31st January 2025 14:00 UTC time the author of the highest rated comment will receive:

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