Breaking down the sunbed economy from @davidkijlstra

The creator explains the business model of the Italian "sunbed economy." He starts by quoting the high prices for renting sunbeds in Positano, then reveals the surprisingly low annual rental fees that beach club owners pay to the state. He uses a specific, high-end beach club as a case study to calculate the massive potential seasonal revenue and profit margins, concluding that it's an incredibly lucrative business.

Creator: @davidkijlstra on Instagram

Transcript

This is the Italian sunbed economy. In Positano, two sunbeds and an umbrella start at €80 for the back row. Front row, €250. And most expensive beach clubs have a mandatory food and beverage spent, which easily doubles your bill. But now comes the crazy part. Beach club owners pay the state usually 3 to €5,000 per year in rental fees. That's less than one day of high season sales, and the people are outraged. And the margins are easily 50 to 60%. So imagine a place like Twiga in Worst De Marmee,

Topics: Business, Travel

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