DDE/DVC savings calculation

[SleepyatDVC]

We are at OKW right now, and we have been using the DDE card as always. The 18% tip is included. In the past, I would always tip 20% on the pre-discount bill.

Now with the 18% added in... I have been just signing the bill. This is lousy for the servers because they are only getting 18% from me instead of the normal 20%. I could add in the extra 2%... and maybe I should... but it actually makes me feel too cheap to put down $1 on a $50 meal. I know it doesn't make any sense (because it would be really be $10 instead of $9)... but still, I have not been doing it.

/Jim

ITA

Ok, I have been looking at this dilemma a bit harder. Lemme see if I get this correctly.

DDE: I pay 65.00 to get it. Then Disney is going to add 18% to the top of the bill, and then I am getting 20% off using it. So my discount is really only 2%??? Am I over simplifying it?

Well the way I look at it is this way. When we used DDE in the past, I added whatever discount I was given (rounded to an even dollar) back as the tip.

So, if the original bill was $100.00. With the discount, the bill is $80, I would add the $20 back as the tip. MY savings would be the tip that I would have had to pay OOP beyond the $100 food costs. So, without the 20% discount, the bill is $100 and since I normally tip 20%, I would have paid $120 total so my savings would be $20 or 16.67% ($20/$120).

So by having a 18% tip automatically included, I too, would probably just sign the bill. So my savings would actually go up. Using the same above example, my total after savings and tip would be $98 ($80+$18), a savings of $22 ($120-$98) or 18.33% ($22/$120) from what I would have paid without the DDE.

Now if someone normally tips 15%, they would still see a discount but not as much as before. For example, if the bill total was $100 and one tips 15%, then the total paid after discount would be $95 ($100-$20+$15), a total savings of 17.39% calculated as follows: $115 (total with tip w/o DDE discount)-$95 = $20 savings or 17.39% savings ($20/$115).

With the automatic 18% tip included, savings on a $100 food bill based on a normal 15% pattern will be as follows: $115 (total with tip w/o DDE) - $98 ($100-$20+$18) = $17 savings or 14.78% savings ($17/$115).


No matter a person's tipping patterns, the DDE card WILL save anyone money as long as they intend to spend over $325 in food and drinks over the course of 12-13 months. This breakeven amount will be aproximately 2-3 meals for my family. Everything above this will be a minimum 16-18% real savings for us.

 

[FLYNZ4]

No matter a person's tipping patterns, the DDE card WILL save anyone money as long as they intend to spend over $325 in food and drinks over the course of 12-13 months. This breakeven amount will be aproximately 2-3 meals for my family. Everything above this will be a minimum 16-18% real savings for us.

Grace,

Nice and clear analysis. Thanks.

One thing that I notice a lot (and I think is a flaw) is that people analyze the DDP by determining how much they saved compared to the amount of the bill. Personally... I honestly think that *MOST* (not all) people change their eating patterns when they are on an all-inclusive type of plan. Hence... I think this type of analysis is flawed.

Personally, I think that a better method of determining the value of the DDP is by comparing how much the DDP plan costs... compared to how much you would actually spend if you were not on an all inclusive plan. I think it is valid to adjust value (+ or -) based on some "intangibles" such as enjoying an extra dessert that you may otherwise omit.

In my personal case... I think those "intangibles" are negative... because we prefer two TS meals a day... but with reduced portions at each. In fact... I *KNOW* that we are not immune from changing our eating behavior when we have an all-inclusive meal. Any time we go to a buffet... we almost always eat much more than we really should. In reality... we feel much worse after we go to a buffet... yet somehow we still seem to get roped into going to them from time to time.

/Jim

 

[Deb & Bill]

My husband (who is at WDW for the marathon) used the DDE last night at Le Cellier. The 18% gratuity was added to the bill. If I hadn't warned him ahead of time, he would have given the server a 39-40% gratuity.