Invoicing

After a program is "ran" or completed we start working on the invoice for the client. There are guidelines that are set by PRA Headquarters let tell us the language that we are supposed to use. This helps us maintain consistency in outlining and detailing the invoices. Many of our clients are repeat clients and some are previous clients of other PRA locations. Our invoice to the client is based largely on the invoices we receive from our suppliers. Our transportation suppliers, for example, give us a final invoice based on actual number of vehicles and hours that they were on duty. It was helpful for me to actually be there on site because I know what vehicle went where, say there was 5 vehicles going to 5 different daytime activities, and what time they returned to the resort.

We give clients an "Estimated Program Total" which is like a preliminary invoice and this is all based on what we have reserved from our suppliers. More often than not, the final total is going to be different because of unexpected changes. If a flight is delayed and one of our attendees on that flight is supposed to be on a mini coach with other attendees we cannot let the others wait around for the late flight. In this case, we may have to call our supplier and have them send another vehicle to pick up the late flight. Also, if we're taking a group of attendees from their resort to a golf outing and a 4 hour round of golf turns into 6 hours then we have to adjust the cost of the vehicle based on actual number of hours the vehicle was needed. This case happened to me a few weeks ago. Extra hours and costs are clearly stated in the Program Service Agreement (AKA the contract). Another reason the final invoice will be different than the preliminary invoice is that if the client has a dj or a band playing at an on-property dinner event and everyone is having a great time and doesn't want the music to stop at 9:00, we can get the approval from the client and ask the dj or band to stay for some overtime. This usually isn't an issue unless the property has to follow city noise codes and they have to stop at a certain time.

Along with invoicing comes job costing and this is the actual charges that PRA incurs from the suppliers. This is a business and we are in the business of making a profit so we do markup each of our services that we provide to the clients. Our computer system is helpful in that we enter in our costs and a certain percentage that we want to make and it gives us the rate that we will charge the client. Originally, we propose around 25 to 28% in order to get the contract and ensure the business. After that, we try to get them to purchase upgrades and if they add more activities or services after the contract has been signed they are usually marked up anywhere from 32 to 40%. Most of our clients understand this process and don't question it because it would be too much of a pain for them to organize everything from all of the different suppliers that ultimately make up their successful program.