Ashnil Mara Camp

Mara Naboisho Conservancy, Kenya

Increase Commission to 8%, but keep markup below 18%

Executive Summary .

Ashnil Mara Camp can increase commission rates to 8% if they keep markup price below 18% to meet their net profit goal of $135,000.

2

Table of Content

2. Executive Summary 3. Current Situation and Objective 5. Scenarios & Commission

Earned 6. Net Profit 7. Contact Information 8. Bibliography

3

Current Situation and Objective

Ashnil Mara Camp wants to determine the impact of raising commission for their sales team from 4-8%

They want net profit to remain above $135,000

To accommodate the potential incase the owners need to increase the markup at which they see timeshares.

When owners incase price, assume sell fewer timeshares

We created and compared 3 scenarios for the new commission rate and projected timeshare sales based on three potential price markups 4

Scenarios and Commission Earned

Using the 3 scenarios above, we calculated how much commission would be earned at the current rate of 4% and at a rate of 8%

Scenario 1 Scenario 2 Scenario 3

Commission Earned at a 4% Rate

6167.07 5923.6 5615.37

Commission Earned at an 8% Rate

12334.14 11847.2 11230.74

$1,000.00$5,000.00$9,000.00

$13,000.00

Commission Earned

Scenario Markup and Timeshare

Total Unit Price

Total Amount

Sold

Scenario 1

Markup 17% , Timeshare 105

$1,468.35 $154,176.75

Scenario 2

Markup 18% , Timeshare 100

$1,480.90 $148,090.00

Scenario 3

Markup 19%, Timeshare 95

$1,493.45 $140,384.30

5Appendix 1,2

Net Profit

Scenario 1 Scenario 2 Scenario 3

$154,176.75

$142,166.40 $134,7

68.93

$141,842.61 $136,2

42.80 $129,153.56

4% Commission 8% Commission

The chart demonstrates that net profit (total amount – commission earned) can remain above $135,000 at a commission rate of 8% if markup remains below 18% 6Appendix 2

stephanie.e.heintzman@gmail.com647-980-3696

STEPHANIE HEINTZMANFor More Information Contact

BIBLIOGRAPHY8

Sources All images were photographed

by Stephanie Heintzman at the Ashnil Mara Camp, in Kenya using a Canon T4i (April 2015)

Appendix 1

MS Excel:

• Scenario PivotTable created with Scenario Manager

Appendix 2

MS Excel:

• Scenario Summary using Scenario Manager

Appendix 3

MS Excel: Scenario Summary looking at different percentage markups and different commission rates