Our Regenerative Pricing Formula

At Rawness, transparency is key to our regenerative economic model. We share our pricing formula to demonstrate how every euro contributes to regeneration, balancing stable investor returns with local reinvestment. This ensures profits flow back into ecosystems and communities, shifting from extractive economics to one of abundance where wealth is redistributed fairly into Commonwealth.
 

Rental Price Calculation Formula

We calculate weekly rental prices for each stay based on a conservative 50% occupancy rate (26 weeks/year) to ensure a baseline 5% ROI for investors. Prices are fixed across high, mid, and low seasons, with no dynamic adjustments. The formula starts with the total investment (acquisition + renovation or new construction + edible gardens + furnishings) and incorporates operational realities.
 

1. Target ROI and Profit Structure:

   • Investors receive 5% ROI on their €1,000 Regenerative Impact Shares, tied to 50% of net profits at 50% occupancy.

   • Example: For a €776,000 6-person stay, annual dividend target = 0.05 × €776,000 = €38,800 (50% of net profit, so total net profit = €77,600).
      

2. Fixed Costs for Edible Gardens:

   • €35 per person per week × capacity × 52 weeks (year-round maintenance).

   • For a 6-person stay: 6 × €35 × 52 = €10,920/year.
      

3. Operational Costs:

   • 55% of total rental revenue covers management, garden maintenance (non-edible), cleaning, insurance, taxes, utilities, marketing, and fair wages.
      

4. Revenue Requirement:

   • Net profit = Revenue - Garden costs - Operational costs (45% revenue).

   • Solve for revenue (R): €77,600 = R - €10,920 - 0.55R → 0.45R = €88,520 → R ≈ €196,711/year at 50% occupancy.
      

5. Seasonal Pricing (3 Seasons):

   • Assuming 9 weeks high, 9 weeks mid, 8 weeks low; ratios: high = base, mid = 80% high, low = 60% high.

   • Total revenue equation yields: High ≈ €9,367/week, Mid ≈ €7,494/week, Low ≈ €5,620/week (for 6-person stay; scaled for others).

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This approach may result in higher prices than standard STRs, but it funds fair wages, local projects, and ecosystem restoration, creating true value beyond accommodation.