I have a nothing throwaway line when people ask if there are any discounts, or if we have a AAA or AARP discount:
"Our discounts are already built into our rates."
Amazingly, after 2 years of using this, no a single person has thought twice to question it. Amazing..
PhineasSwann said:
I have a nothing throwaway line when people ask if there are any discounts, or if we have a AAA or AARP discount:
"Our discounts are already built into our rates."
Amazingly, after 2 years of using this, no a single person has thought twice to question it. Amazing.
This has worked very well for me, too. Earlier last month, I met with a SCORE adviser because my business was down 10% from last year. There were several factors leading to this, not many of which were under my control. Anyway, he helped me look at the entire business thru his eyes and he's not a B&B guru, but a very savvy businessman. I got rid of all of my discounts and re-adjusted the rates. Since doing this, the reservations have increased and I figured that with the new adjusted rates, my ADR is not going to be any less than I was getting with all the discounts. The rate is what it is and it's SO much easier not having to calculate everything!
So, when guests call and ask about discounts, that's exactly what I tell them - we've re-adjusted the rates to include all the previous discounts and specials. NO ONE has questioned it!
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To me, discounts are never for peak seasons. But for midweek or offseason, I think can discount rather than have an empty bed, on a case by case basis. But it doesn't have to be publicized.
If for a Tuesday, someone is waving a $100 bill for a $125 room, and prospects are not good, I would grab it.
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undersea said:
To me, discounts are never for peak seasons. But for midweek or offseason, I think can discount rather than have an empty bed, on a case by case basis. But it doesn't have to be publicized.
If for a Tuesday, someone is waving a $100 bill for a $125 room, and prospects are not good, I would grab it.
And here is why I will not take it.
That person has just said my B & B and my room is not worth my rate. I am not good enough to pay the rate I am asking. I will not be belittled or devalued.
That $25 that person is not willing to pay is part of what I need to pay for what he has used being here. In the winter it costs to heat the room(s - if in private bath), in summer to run A/C. If the rooms are empty those are not on. It costs me in water/sewer/garbage/laundry costs/time to iron. It costs for the breakfast foods I do not buy if I do not have guests. My guests get the premium grade ingredients - we live from the lets get rid of shelf.
So no, I am not going to take the $100 that person has offered as if we were "drag a $100 bill through the trailer court". MY bed & breakfast is and I am CLASS.
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Each person must make their own policies. But I cannot agree to rejecting the offer.
"Your rate" has no meaning in a supply and demand world. If someone decides to sell gas for a quarter more than everyone else with no value add, they will go out of business.
Standard yield management can increase revenue and profitability. A room during a major event can bring more, and some places raise their rates. Down times, perhaps only crickets. Supply and demand works everywhere.
.... "Yield management is a variable pricing strategy, based on understanding, anticipating and influencing consumer behavior in order to maximize revenue or profits from a fixed, perishable resource."
Guests could care less about the innkeepers costs and other things. Some costs are fixed - insurance, mortgage, cable. Other costs are variable - cleaning, prepping a meal, etc. An empty room during off-peak times costs money. Especially when it gets close to that day.
Not taking the $100, I am losing money. It is not a discount to me when the room is not so likely to be booked. To me it is a discount when it takes away from a likely full rate booking.
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