Paul in CT
DIS Veteran
- Joined
- Aug 23, 1999
OK - so let's look at the numbers to see if the DDE card really is a good deal. I am using nice round numbers because my brain already hurts thinking about doing math. Your mileage may vary.............
With DDE Card
Cost of dinner (estimated) = $100
18% Gratuity before discount = $18
20% DDE Discount = $20
Final Cost = $100 - $20 + $18 = $98
Without DDE Card
Cost of dinner (estimated) = $100
18% Gratuity before discount = $18
Final Cost = $100 + $18 = $118
Savings with DDE card = $20
Cost of DDE Card = $65
# of $100 meals to 'break-even' point = 3.25
or $325 in meals
After $325 is when the discounts for DDE start to actually save you money over and above the purchase of the card.
If I put $65 in my PayPal money market account right now I would get less than 5% interest - so let's say for the sake of argument it is 5% interest.
Simple interest would pay $3.25 in one year on that $65 - compounding might bring it up to $4.00 - let's say $5.00 in interest in one year.
So if you plan on spending more than $330 in table service meals at Disney in one year then the DDE plan is worth it.
Granted, not everyone might spend that in a year. Being local and doing the restaurant reviews for the podcast I still think DDE is a good deal for us.
John
OOOPS - Forgot to add back in the $65 cost of the card itself. The 'break-even' point of the DDE card being worth it (especially after the 18% gratuity becomes mandatory for everyone) would be $395.
Excellent explanation! My DW and I love the DDE. We always spend more than $395 each time we visit with our AP's at least twice per year.
Although I do not like Disney telling us how much to tip (service charge), it will likely save us money since we always leave at least the amount of the 20% discount unless the service was terrible. We have yet to experience that over MANY trips, thankfully.