🔒 Financials / Internal Workings

Internal costing notes for solar, battery and off-grid package pricing.

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Internal note: These figures are working assumptions only and should be checked before quoting.

1. Assumptions Used

Wood-Fired Sauna Pod£21,995£18,329£9,165£9,16450.0%

Wood-fired cost note: wood-fired cost includes the base sauna pod cost plus an allowance for the stove, flue, heat-shielding and associated installation requirements.

Sauna Pod Pricing / Costing — 50% Margin Target

Revised Sauna Pod pricing so the product achieves approximately a 50% gross margin against the current internal build-cost model.

Product Selling price inc VAT Selling price ex VAT Cost ex VAT Gross profit Gross margin
Electric Sauna Pod £18,995 £15,829 £7,740 £8,089 51.1%
Wood-Fired Sauna Pod £21,995 £18,329 £9,165 £9,164 50.0%

Wood-fired cost note: wood-fired cost includes the base sauna pod cost plus an allowance for the stove, flue, heat-shielding and associated installation requirements.

Steel Chassis with Integrated Fork Tunnels

Optional fabricated steel chassis designed to allow the pod to be moved around site using suitable farm telehandler / fork equipment. Final specification subject to fabricator confirmation, fork spacing, load rating and site requirements.

Item Amount
Fabricated cost £2,100 ex VAT
40% margin selling price £3,500 + VAT
Recommended quoted selling price £3,695 + VAT
Recommended selling price inc VAT £4,434 inc VAT
Gross profit at £3,695 + VAT £1,595
Gross margin at £3,695 + VAT 43.2%

Pricing note: £3,500 + VAT achieves a 40% gross margin on a £2,100 fabricated cost. The recommended £3,695 + VAT quote gives additional contingency for design changes, extra steel, welding time, handling or transport.

Operator-Funded Partnership Return — Based on Our Cost Price

This model assumes we fund the units at our internal cost price, install and operate the site, and split accommodation revenue 70/30.

Revenue split: 70% operator / 30% landowner.

Important: the landowner's 30% is based on gross accommodation revenue. Our payback is calculated against our internal build cost, not the retail selling price.

Revenue Share Summary

Site size Estimated annual accommodation revenue Landowner 30% Operator 70%
1 pod£18,000£5,400£12,600
2 pods£36,000£10,800£25,200
3 pods£54,000£16,200£37,800
4 pods£72,000£21,600£50,400
5 pods£90,000£27,000£63,000

Operator Payback — Standard Base Pods + Fully Fitted Wash Station

Cost basis: Standard base SleepPod cost £8,230 ex VAT each, fully fitted wash station cost £13,500 ex VAT.

Site setup Internal cost to us Operator 70% annual revenue Estimated payback
1 pod + wash station£21,730£12,600~20.7 months
2 pods + wash station£29,960£25,200~14.3 months
3 pods + wash station£38,190£37,800~12.1 months
4 pods + wash station£46,420£50,400~11.1 months
5 pods + wash station£54,650£63,000~10.4 months

Operator Payback — Fully Fitted Pods + Fully Fitted Wash Station

Cost basis: Fully fitted Standard SleepPod cost £9,350 ex VAT each, fully fitted wash station cost £13,500 ex VAT.

Site setup Internal cost to us Operator 70% annual revenue Estimated payback
1 pod + wash station£22,850£12,600~21.8 months
2 pods + wash station£32,200£25,200~15.3 months
3 pods + wash station£41,550£37,800~13.2 months
4 pods + wash station£50,900£50,400~12.1 months
5 pods + wash station£60,250£63,000~11.5 months

Return Logic

Formula Explanation
Payback = internal cost ÷ operator annual revenue × 12 Shows how long it takes us to recover our build cost from our 70% revenue share.
Landowner income = gross accommodation revenue × 30% Shows the farmer / landowner share before any separately agreed cleaning income.

Example: a 5-pod fully fitted site costs us approximately £60,250 ex VAT to build. Our 70% share of £90,000 annual accommodation revenue is £63,000, giving an indicative payback of around 11.5 months before tax, booking fees, maintenance, insurance and operating overheads.

One Pod Trial Example — 70/30 Revenue Share

This shows the return profile for a simple one-pod trial. The landowner receives 30% of gross accommodation revenue and the operator retains 70%.

Item Amount
Estimated annual accommodation revenue £18,000
Landowner 30% £5,400
Operator 70% £12,600

Operator Payback Based on Internal Cost

Setup Internal cost to us Operator annual revenue share Indicative payback
1 base SleepPod only £8,230 £12,600 ~7.8 months
1 fully fitted SleepPod only £9,350 £12,600 ~8.9 months
1 base SleepPod + fully fitted wash station £21,730 £12,600 ~20.7 months
1 fully fitted SleepPod + fully fitted wash station £22,850 £12,600 ~21.8 months

Commercial note: a one-pod trial gives the fastest payback where the pod can use existing facilities. If a dedicated wash station is required for a single pod, payback is materially slower because the wash station cost is carried by only one unit.