In Bodrum you can use the Euro or the YTL in most shops and restaurants. The only places that are a bit more keen on keeping only the YTL are the smaller areas outside the main touristic area.
If you go with Euro and a little bit of YTL or the other way around you will be fine. Try not to use the USD or Sterling as they are not as widely accepted.
Bodrum is a great place and i am sure that you will have no problem as everyone will help you. The only advise that i can give you is make sure that you always ask the price before you agree to anything. They are great but they are always happy to make an extra bit of money.
Spending wise it varies greatly. The first time i was there my friend and I spent about 500GBP and then we went back a bit later with no money and had an amazing time spending as little as 30 GBP for a week. If you think that something is too expensive, Don't go there or buy and they will always make an offer to make it more appealing.
I am not sure about the Konak BandB so i can't offer anything on that however, just make sure you enjoy yourself. I spent 2 months there over summer last year and had an absolute ball. So have fun and if you have any questions please feel free to ask.
Have a great trip!!!