How do you calculate your average service ticket?

To determine the average service ticket, you want to understand how much revenue you earn on average from each guest. This is done by calculating the total amount of money generated from services (total service dollars) and dividing it by the number of guests you served.

Using the formula where you take the total service dollars and divide it by the number of guests gives you a clear view of your average revenue per customer. This figure is crucial for businesses as it helps in understanding customer spending behavior, identifying revenue trends, and making informed decisions regarding pricing and service strategies.

Other methods of calculation, such as adding, subtracting, or multiplying the total service dollars with the number of guests, do not yield an average and instead result in figures that do not represent the desired metric of average revenue per guest.