RealDropzone Documentation

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Thursday, January 15, 2009
RealDropzone Pricing & Licensing
By RealSkydiving @ 9:59 PM :: 4362 Views :: 0 Comments ::

Editor's note: Don’t be fooled by our competition’s pricing, their prices *do not* include hourly support charges which can quickly add up and be difficult to budget for. Our pricing system assures that you will never have any surprises.

This document references a number of calculations.  An Excel spreadsheet is available for download by clicking on this link, which can be used to plug your own business' numbers in for analysis.

An enterprise solution of this magnitude has never before been available to the Skydiving industry, A great deal of effort has gone into making RealDropzone™ financially available to dropzones of all sizes. A license based pricing model was chosen in order to avoid large start-up costs usually associated with enterprise software solutions, and to scale the total operation cost to the size of your business. This pricing structure also acts as insurance that the solution will be fully supported with ongoing software updates and a support staff capable of supporting the product on a long-term basis.

The cost to use RealDropzone™ is as follows:

  • $0.95 for each Tandem or Student Skydive managed with the product.
  • $0.05 per non-staff, non-student skydive manifested using the product.

*License fees are only applicable to Tandem or Student Skydives for which payments have been received, and are billed only after the jump has taken place.

Installation / Implementation of the product is free, meaning that there are no additional fees on top of those listed above, however we do require a deposit of $3,500 prior to installation which will count towards your first $3,500 worth of license fees.

After you have used up your initial $3,500, you will be billed monthly for usage. 

Your license fees include the following:

  • All current and Future RealDropzone™ features.
  • Installation of client software on unlimited machines.
  • Free training on product at time of installation / implementation.
  • Free product upgrades & 1st time training on new features.
  • Free upgrades to DotNetNuke and selected Premium Modules.
  • Free technical support for all bug related issues.
  • Free nightly encrypted offsite backups.
  • Free non-bug related technical support on our support forums at
  • Free 12 hours of non-bug related telephone technical support & training each calendar year.
  • 50% off up to 60 hours of additional telephone technical support each calendar year.**
  • Website hosting /w 500GB of traffic per month and 10gb disk space.**

** Disk space limitation includes only static hosted website content such as documents, images, and videos.  An unlimited amount of space is available for RealDropzone and DotNetNuke applications, and for the database used to store application data.  Website traffic in excess of 500GB will be billed at $1.50/GB, or can be pre-purchased for $0.85 per GB.  Disk space in excess of 10GB will be billed at $1 per GB per month.

(There should be no reason that your website should need to exceed 500GB of traffic or 10GB worth of content files even for the busiest dropzones.  The only thing you might do that would cause you to go over these limits is to host a number of large multimedia files such as video content or extremely high resolution photographs.  If you do decide to host a large quantity of video content we can work with you to set up a different hosting provider with better rates, and link to that content from your website with us.  Our servers are hosted with where the Quality and Reliability of the traffic and hardware uptime is superb, but excess bandwidth and disk space costs a premium.)

Our current rate for technical support is $85/hr, you will receive 12 hours of free technical support at no cost, after which you’ll be charged 50% our technical support rate for the next 60 hours of technical support.  After which you will be billed the full rate.

A late fee of $20 applies to all invoices that go 45 days past due.  A finance charge of 10% will be billed monthly for all invoices 61 days or more past due with the first fee being applied at exactly 61 days.  Hosted services may be suspended if any invoice goes 120 days unpaid.

RealDropzone™ will increase your revenue.

This document demonstrates that using even *very* conservative numbers, that your business will benefit from the revenue increasing capabilities of RealDropzone™.

Let’s examine a very conservative scenario:

The average office employee is being paid $8 per hour, and the business overhead for this position is 25%, meaning that keeping this staff employed actually costs the business $10 per hour.

This means that the average cost per minute for an office employee is $0.1667.

Now let’s consider that the following office staff time is spent on average per Tandem Skydive:

  • 4 Minutes spent on telephone / email communication with customer to secure a sale and to collect deposit money.
  • 2 Minutes are spent per Tandem Skydive checking them in by collecting customer information, final payment information, verifying age and weight, collecting signed waivers and emergency contact information, assigning group numbers, and organizing classroom training.
  • 2 minutes are spent per Tandem Skydive assigning students with instructors and videographers, and manifesting those slots onto a load.
  • 1 minute is spent per Tandem Skydive communicating load information to customers and instructors.

This would mean that a single Tandem Student takes approximately 9 minutes of office staff time.  We feel that these numbers are accurate, here is some justification:

  • In an 8 hour day, one employee has 480 minutes. 
  • In order to handle 100 students in one day, it would take 900 minutes, or 1.875 employee days. 
  • In order to handle 50 students in one day, it would take 450 minutes, 0.9375 employee days.
  • Remember that a portion of this time happens days before, when the reservation is placed, which spreads the saved time throughout the week.
  • While some staff members may be able to work faster, these are not the staff members who you are paying only $8/hour for.

This puts the total cost of office staff time spent on a single Tandem Skydive at $0.1667 * 9 Minutes equal to $1.5003.

Let’s consider that RealDropzone™ can reduce the amount of time spent by office staff by 25%, or 2.25 minutes.  This means a savings of $0.375 in time spent by office staff per Tandem Skydive.

Here are just a few of the ways that RealDropzone can save this amount of time:

  • Customers are more likely to find your website, and because of its professional look and ease of use, help themselves to information that they’re interested in before deciding to call your office.  This is because of the coaching we provide in how to lay out the content of your website to present information so that it’s easy to get to.  It is also helped by many of the Search Engine optimization techniques that happen behind the scenes to help your website become high in search results from not only popular search engines, but also other online search tools such as maps, service directories, etc.
  • Customers who login will provide you with contact information which is then automatically fed into RealDropzone so that no double entry of information has to take place at check-in.
  • Reservations made online and off are organized into the same location, so that different reservation lists to not have to be manually compiled together for summaries.
  • Telephone reservations get entered directly into a fast responding Windows application so that information does not need to be handwritten anywhere, and will be in the same place as all of your other reservation information.
  • Customers can be informed about the check-in process with an email to make sure they are prepared when they arrive.
  • Customers can be manifested using a drag-and-drop interface after they have been properly checked in.  At that time they are paired with instructors and videographers by using the same drag-and-drop interface.  Manifest information is communicated immediately through television or computer monitors to customers or staff members who will need the information.  Because the manifest communication is actually just a special website, this information can also be accessed by staff through mobile devices like an iphone.
  • Payment information is entered directly into RealDropzone™ by typing the information in during phone orders, or by swiping a credit card for in-person transactions.  This means no double entry of payment information as the transaction is associated directly with that customer, and with the product they purchased.
  • Credit Card authorization takes place immediately over the internet through Authorize.Net’s secure payment gateway.  Average wait time is less than 2 seconds.

If we subtract your time savings of $0.375 from the RealDropzone™ license fee of $0.95 per Tandem Skydive, you’re total cost of using RealDropzone™ is now $0.575 per Tandem Skydive.

Next, let’s consider that all of the data collection that’s taking place online, over the telephone, and in person is allowing you to collect email addresses and other contact information into one place, which can now be used for marketing initiatives which can increase repeat customers.

Let’s assume that the average price paid for a Skydive at your facility is $160.00, this seems to be a conservative estimate when considering that most dropzones charge around $200 for a full price ticket and $100 for second tandem jumps, and somewhere in between for special discounts. 

Lets also assume that the average profit margin that you see on Tandem Skydives is 25%, meaning that the average revenue generated by a single Tandem Skydive is $40.

Let’s also consider that the average return customer is not only responsible for their own second purchase, but on average brings .75 friends along to jump with them (in other words, 2 out of 3 people bring 1 friend).

This means that the average return customer brings in additional revenue of $70.

If RealDropzone’s email marketing capabilities are ONLY able to increase your return customer rate by 0.50% (in other words, an additional 1 out of every 200 customers returns, and 2 out of 3 of them bring a single friend with them as well) – RealDropzone has now increased your overall business revenue by 0.50% of $70, or $0.35 per tandem skydive.

Next, let’s consider that the marketing capabilities built into the back end of the RealDropzone™ web components will improve your dropzones placement in search engines, as well as the efforts that RealSkydiving will be making on an ongoing basis to proactively list all RealDropzone™ subscriber websites with relevant online directories and portals.

Let’s say that RealSkydiving’s continuous efforts to make use of all of the latest search engine optimization techniques, as well as encouraging Social Networking site integration, will result in an overall increase of business by just one additional sale for every 350 sales already being made. 

This increases the revenue generation of RealDropzone™ by 0.35% (0.0035) * $40, or $0.14 per tandem Skydive.

If we subtract $0.375 (savings in office staff time) and $0.35 (revenue generated from increased return customers) and $0.14 (revenue generated in new customers) from the RealDropzone™ License fee of $0.95, RealDropzone™ is effectively costing you $0.085 per Tandem Skydive.

Now consider that you’re likely paying a hosting fee to host your website already.  Let’s assume you’re paying just $10 per month, or $120 per year to have your website hosted.  Because RealDropzone’s License includes your web hosting, this is no longer an expense that you’ll need to incur.
This means that the average monthly cost to your business to operating RealDropzone™ using the assumptions we’ve made above, come to:

  • $4.17 per month for a dropzone with 2,000 Tandem Skydives annually.
  • $18.00 per month for a dropzone with 4,000 Tandem Skydives annually.
  • $32.50 per month for a dropzone with 6,000 Tandem Skydives annually.

Now that you’ve seen what our product will cost you to operating using very conservative numbers, lets take a look at these numbers after changing the following assumptions:

  • Instead of your office staff being paid $8/hr, let’s assume the average wage you’re paying is $10/hr.
  • Instead of RealDropzone saving you 25% of staff time spent per Tandem Skydive, Let’s assume it’s able to save you 40%, or 3.6 minutes per tandem Skydive.
  • Instead of increasing your return customers by 0.5%, Let’s assume it’s able to increase your customer return rate by 1%.
  • Instead of increasing your new customers by 0.35%, Let’s assume it’s able to increase your sales by 0.75%.
  • Instead of assuming you’re currently spending $10/mo on website hosting, Lets assume you’re currently paying $20 per month.

With these new assumptions, RealDropzone™ isn’t costing you at all!  In fact, it’s increasing your revenue!

  • With 2000 annual Tandem Skydives, you’ll see an additional $2,540 in annual income.
  • With 4000 annual Tandem Skydives, you’ll see an additional $4,840 in annual income.
  • With 6000 annual Tandem Skydives, you’ll see an additional $7,140 in annual income.

Now that you’ve seen what kind of potential our product has to increase your annual income, let’s take a look at these numbers on more time with some aggressive but still realistic assumptions:

  • Your office staff is currently costing you an average of $12/hr.
  • RealDropzone allows your office workers to spent 45% less time per Tandem Skydive, saving 4.05 minutes, or $1.0125 in staff time.
  • RealDropzone increases your return customer rate by 4.5%
  • RealDropzone increases your new customer rate by 1.25%
  • You’re currently spending $30/mo hosting your website.

With these aggressive assumptions, RealDropzone™ is increasing your revenue as follows:

  • With 2000 annual Tandem Skydives, you’ll see an additional $7,785 in annual income.
  • With 4000 annual Tandem Skydives, you’ll see an additional $15,210 in annual income.
  • With 6000 annual Tandem Skydives, you’ll see an additional $22,635 in annual income.

 You can use the following information cut from the Excel spreadsheet mentioned at the top of this document as a reference:


Specified Variables:
Average cost of employee per hour: $8.0000 $10.0000 $10.0000 $12.0000 $12.0000
Average percent business overhead per employee: 25% 25% 25% 25% 25%
Average minutes spent on telephone with customer: 4.00 4.00 4.00 4.00 4.00
Average minutes spent with customer durring check-in: 2.00 2.00 2.00 2.00 2.00
Average minutes spent pairing customer with Instructors / Videographers: 1.00 1.00 1.00 1.00 1.00
Average minutes spent manifesting slots for tandem jump: 1.00 1.00 1.00 1.00 1.00
Average minutes communicating load information to staff and customers: 1.00 1.00 1.00 1.00 1.00
Average percent time saved by RealDropzone: 25% 35% 40% 45% 45%
Average percent increase in return customers: 0.50% 1.00% 1.50% 3.00% 4.50%
Average percent increase in new customers per month from RealDropzone marketing features: 0.35% 0.50% 0.75% 1.00% 1.25%
Average percent profit margin on Tandem Skydive Sale: 25% 25% 25% 25% 25%
Average Sale price per Tandem Skydive: $160 $160 $160 $160 $160
Average number of friends returning with average return customer: 0.75 0.75 0.75 0.75 0.75
Average current monthly cost of website hosting (will be saved by switching to RD): $10 $15 $20 $25 $30
Calculated Values:
Average total cost per hour of employee: $10.0000 $12.5000 $12.5000 $15.0000 $15.0000
Average total cost per minute of employee: $0.1667 $0.2083 $0.2083 $0.2500 $0.2500
Average total cost per second of employee: $0.0028 $0.0035 $0.0035 $0.0042 $0.0042
Average total office staff time spent per Tandem Skydive: 9.00 9.00 9.00 9.00 9.00
Averate total cost in office time spent per Tandem Skydive: $1.5000 $1.8750 $1.8750 $2.2500 $2.2500
Average total office staff time spent per Tandem Skydive with RealDropzone: 6.75 5.85 5.40 4.95 4.95
Average total office staff time saved per Tandem Skydive with RealDropzone: 2.25 3.15 3.60 4.05 4.05
Average profit per Tandem Skydive: $40 $40 $40 $40 $40
Average profit per return customer (considers customer brings friends): $70 $70 $70 $70 $70
Average revenue increase per Tandem Skydive from office time with RealDropzone: $0.3750 $0.6563 $0.7500 $1.0125 $1.0125
Average revenue increase per Tandem Skydive from increased returned customers: $0.35 $0.70 $1.05 $2.10 $3.15
Average revenue increase per Tandem Skydive from increased new customers: $0.14 $0.20 $0.30 $0.40 $0.50
License cost of RealDropzone per Tandem Skydive: ($0.95) ($0.95) ($0.95) ($0.95) ($0.95)
Gross average revenue increase per Tandem Skydive from using RealDropzone: $0.87 $1.56 $2.10 $3.51 $4.66
Net average revenue increase per Tandem Skydive from RealDropzone: ($0.0850) $0.6063 $1.1500 $2.5625 $3.7125
Number of Tandem Skydives per year: (this reflects not only savings per tandem, but percent increase of new customers as specified above, as well as annual savings from us hosting your website ): Increased Revenue per year:
500 $77.50 $483.13 $815.00 $1,581.25 $2,216.25
1000 $35.00 $786.25 $1,390.00 $2,862.50 $4,072.50
1500 -$7.50 $1,089.38 $1,965.00 $4,143.75 $5,928.75
2000 -$50.00 $1,392.50 $2,540.00 $5,425.00 $7,785.00
2500 -$92.50 $1,695.63 $3,115.00 $6,706.25 $9,641.25
3000 -$135.00 $1,998.75 $3,690.00 $7,987.50 $11,497.50
3500 -$177.50 $2,301.88 $4,265.00 $9,268.75 $13,353.75
4000 -$220.00 $2,605.00 $4,840.00 $10,550.00 $15,210.00
4500 -$262.50 $2,908.13 $5,415.00 $11,831.25 $17,066.25
5000 -$305.00 $3,211.25 $5,990.00 $13,112.50 $18,922.50
5500 -$347.50 $3,514.38 $6,565.00 $14,393.75 $20,778.75
6000 -$390.00 $3,817.50 $7,140.00 $15,675.00 $22,635.00
6500 -$432.50 $4,120.63 $7,715.00 $16,956.25 $24,491.25
7000 -$475.00 $4,423.75 $8,290.00 $18,237.50 $26,347.50
7500 -$517.50 $4,726.88 $8,865.00 $19,518.75 $28,203.75
8000 -$560.00 $5,030.00 $9,440.00 $20,800.00 $30,060.00
8500 -$602.50 $5,333.13 $10,015.00 $22,081.25 $31,916.25
9000 -$645.00 $5,636.25 $10,590.00 $23,362.50 $33,772.50
9500 -$687.50 $5,939.38 $11,165.00 $24,643.75 $35,628.75
10000 -$730.00 $6,242.50 $11,740.00 $25,925.00 $37,485.00
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