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Calculations of Hosts Savings Found in Thank You Letter?

In summary, the conversation discusses confusion over the calculation of host savings in a thank you letter. The host's actual order is listed and the numbers do not add up to the amount stated in the letter. It is revealed that the letter states the total merchandise value, savings, and amount paid. There is also a discussion about the eligibility for a free towel based on the amount spent out of pocket. It is suggested to call tech support for further clarification.
ChefCat
197
How are the host savings calculated in the thank you letter? I have a show that the numbers don't add up. The show is at the $200 level.

This is the host's actual order:
Mix 'N Chop- $10.00
The Corer- $10.50
Egg Separator- $6.50
Kitchen Spritzer- $12.50
Meat Tenderizer- $28.00
Microfiber Towel- $FREE
Sub-Total- $67.50
minus $25 in free = $42.50
minus 20% discount = $34.00
Plus Adjustable Tower at $15.80 = $49.80
No Shipping
Plus $2.99 for 6% tax = 52.79 total paid

So if I take all the items at their full price ($39.50 for the tower and $8.50 for the towel), with no discounts I come up with $115.50 in products
plus $14.25 in full price shipping = 129.75
plus $7.79 with 6% tax = $137.54


But- when I looked at the host thank you letter, it says: " You received $168.81 worth of merchandise for $52.79 - and that’s a $116.02 savings." Huh? I agree with the $52.79, but where did the $168.81 come from? I don't understand. Does this make since to someone? Please enlighten me!
 
  • Thread starter
  • #2
67 views and no one has any thoughts on this? =)
 
I don't know what to tell you - are you sure you listed her entire order? Normally, I find that the total is off but in the other direction. In the past the program hasn't calculated the total using the full price of the host special or the guest special. You can adjust that number on the thank you letter to say what you believe to be correct.
 
ChefCat said:
But- when I looked at the host thank you letter, it says: " You received $168.81 worth of merchandise for $52.79 - and that’s a $116.02 savings." Huh? I agree with the $52.79, but where did the $168.81 come from? I don't understand. Does this make since to someone? Please enlighten me!

No, you calculated correctly but misread the wording in the letter. Note that the letter says $168.81 worth of merchandise.
The total merchandise value $168.81, the savings is $116.02, and she paid $52.79. If you add $116.72 (free) and $52.79 (paid), you get $168.81.
 
I have that problem all the time. I feel like I always have to check it.

It bugs me since it seems to exagerate what they are really getting. Back when I first noticed it, I seem to recall that it was a bug that they were fixing and it was only for that current month (can't remember details exactly-it was last year sometime, I think).

I think I even had one that was hundreds of dollars off.

You may want to call Tech Support.

If I have time later, I'll try to find the old thread.
 
Your calculations seem correct, but I have no explanation for the total they came up with. Unless I am missing something, how did she get the free towel seeing as she only spent $49.80?
 
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  • #6
taterbug said:
Your calculations seem correct, but I have no explanation for the total they came up with. Unless I am missing something, how did she get the free towel seeing as she only spent $49.80?

I tried entering in the number and it appears to have accepted it. Although I have not submitted the order yet, waiting for one more order. Right now there is a red dot next to the host's name, I can't figure out what the error is, but maybe the red dot is because she is not really qualified for the towel? Let me go remove the towel from her order and see if that makes the red dot go away, and see if it changes the amounts in the host TY letter... Be right back... =)
 
taterbug said:
Your calculations seem correct, but I have no explanation for the total they came up with. Unless I am missing something, how did she get the free towel seeing as she only spent $49.80?

As long as the Host is spending $60 out of pocket, she quailfies for the free towel. So at $49.80 she would not be eligible for it. Just because her items add up to more than $60, she doesn't quailfy for it if the FPV brings her below $60. However, if she were to have half-price items and/or the host special item that brought her out-of-pocket total above $60, she would be eligible for it.

ChefCat said:
I tried entering in the number and it appears to have accepted it. Although I have not submitted the order yet, waiting for one more order. Right now there is a red dot next to the host's name, I can't figure out what the error is, but maybe the red dot is because she is not really qualified for the towel? Let me go remove the towel from her order and see if that makes the red dot go away, and see if it changes the amounts in the host TY letter... Be right back... =)

You can always go to the "Finalize" tab of the show, and it will tell you what each red dot or orange triangle is for.
 
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  • #8
Ah.. the host did not qualify for the free towel. I removed that item and her red dot went away. I tried. =) Not that it would have gone through, but I just wasn't sure.So now, with no free towel her stats are:
You received $159.80 worth of merchandise for $52.79 - and that’s a $107.01 savings.Again, I still agree with the $52.79 but the rest doesn't make any since?
 
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  • #9
NooraK said:
You can always go to the "Finalize" tab of the show, and it will tell you what each red dot or orange triangle is for.

Oh OK, thanks! I was afraid to hit finalize until I was really ready to finalize.
 
  • #10
OK, here is what I have come up with, it seems to be adding in the host special in twice. I have no way of knowing if this is actually the mistake, but the numbers work for the wrong total.


Correct way (or close to correct depending on how much you want to add for shipping)
67.50 product
39.50 host sp
4.25 ship
------
111.25 + 6.68 tax = $117.93

Here's how I came up with $159.80:
67.50 product
39.50 host sp
4.25 ship
39.50 host sp again
-------
150.75 + 9.05 tax = $159.80


So it appears as though the host special may have been added in twice. Again, not saying this is the case, but I got the numbers to work.
 
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  • #11
Interesting Kam, maybe that is what it is thinking.
 
  • #12
No clue.. that is a big difference.. there has to be something missing.
 
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  • #13
Dotty said:
No clue.. that is a big difference.. there has to be something missing.

As in I am leaving something off when I add it all up and type it out? Because my numbers match what I entered, which matches P3s math to figure out the host balance. So I'm not sure where something could be left off at?
 
  • #14
Well did you call Tech Support for an explanation?
 
  • #15
Has anyone peeked at the template of the letter to see if that gives a clue as to how it's calculated? I'm not at home so I can't look in P3, but that might offer an answer.

If not, I agree with calling Tech Support. Either they can answer, or they should be advised something needs to be fixed.
 
  • Thread starter
  • #16
NooraK said:
Has anyone peeked at the template of the letter to see if that gives a clue as to how it's calculated? I'm not at home so I can't look in P3, but that might offer an answer.

If not, I agree with calling Tech Support. Either they can answer, or they should be advised something needs to be fixed.

Not sure if by template you mean whole letter? Here is the whole letter incase that is what you are asking for. =)

Dear Host,

Thank you so much for hosting a Pampered Chef Cooking Show. I had a great time getting better acquainted with you and your friends.

Here are a few "housekeeping" tips to wrap up your Show:

Enclosed are the original sales receipts. My computer-generated forms work the same as the handwritten copies. Please save the receipts for your guests.

Your order is being processed and should arrive no later than *NO DATE*. When the order arrives, check the shipping label to see how many boxes were sent. Occasionally, a box becomes separated and arrives a day or two later. When all boxes arrive, open the box labeled "Box 1" first.

Sort your guests’ orders into the Pampered Chef bags provided in Box #1. Be sure to include the guests’ original sales receipts. PLEASE NOTE: Your Box #1 includes perforated individual Guest Order Summaries. These make sorting orders even easier, because they tell you in which box each of the guest’s products can be found. Please add each guest’s order summary sheet to the bag, along with the original sales receipt.

When you’re finished, give me a call to let me know everything is satisfactory. My number is 555-1212. The Pampered Chef® will arrange to pick up any items that need to be returned at no charge within the first 30 days from the date they were shipped. Therefore, please ask everyone to check their products carefully and let me know right away if any adjustments need to be made.

Remind your friends that our guarantees are extended for one full year, or longer for some products. Encourage them to keep their receipts in a safe place and to call me if they have any questions.

Your Host Club Discount Card will be in the lower left-hand corner of one of the packing slips. This will entitle you to a 10% discount on your purchases for one full year!* Just call any time you need anything. (*Not applicable toward purchase of the Monthly Host Special or when you are hosting a Show.)

Host, I know you are going to enjoy the products that you earned from our host program. You received $159.80 worth of merchandise for $52.79 - and that’s a $107.01 savings. I’m so happy for you! Thanks again.

Warmly,

My Name
Your Consultant


P.S. If you had been the Consultant for this Show, you would have earned $54.25. If you (or someone you know) would benefit from additional income, please give me a call. I think you would be an excellent Consultant.
 
  • #17
No, I meant looking at the template in P3 that the letter is created out of. I'm at home now, so I'll see what I can find...

So, if you go into P3, under Tools > Preferences > Reports > Thank You Letter, you can edit the letters. This pulls up the template from which each letter is created. I looked at it, and in that section the variable is just [Would_Have_Cost] so it doesn't really tell us how it's calculated.
 

1. How is the host's savings calculated?

The host's savings are calculated by taking the total sales from the party and multiplying it by the host discount percentage. This discount percentage can range from 10% to 30% depending on the total sales of the party.

2. Is there a minimum amount required for the host to receive savings?

Yes, there is a minimum sales requirement for the host to receive savings. This amount varies depending on the current promotions and host discounts. However, typically the minimum sales requirement is around $200.

3. Can the host use their savings on any Pampered Chef products?

Yes, the host can use their savings on any Pampered Chef products, including those that are on sale or discounted. The savings will be applied towards the total purchase amount at the time of checkout.

4. How long does the host have to use their savings?

The host has 30 days from the date of their party to use their savings. After 30 days, the savings will expire and cannot be redeemed.

5. How will the host receive their savings?

The host will receive their savings in the form of a promotional code or credit that can be used on their next Pampered Chef purchase. This code will be included in the host's thank you letter and can be applied at checkout online or through their consultant.

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