GL, good new innkeeper question. I asked the same when I started and got the usual diverse (polite term) responses here. What I decided, and what has worked out is ...
Family visits rarely, but generally stays in non-inn spaces, to leave open room sales. A house party of friends or family that we all invite is a strain on us, but fun. They recognize that and put money in for expenses, food, housekeeping.
Old friends who want to come by on a trip for a visit usually pay $40 for a night or two, covers direct expense. They are always glad to do it as it solves a problem of not wanting to be freeloaders. These are (discounted) sales and we pay the room tax.
Business acquaintances, neighbors, etc. I thought I might offer 20% off, but in truth, these folk are more demanding that regular guests, so now it is 10% off, the same as a block booking (with a deposit).
Then there are the freeloaders. Avoid them. There are "media" types - anyone with a blog is media nowadays - looking for comp rooms. Sometimes you will get a mention, rarely a customer. People want you to donate a room night for a charity auction. If you like the charity, fine, but no potential customers will see ever it.
Anyone who said "I am your friend, give me a free night and I will tell my friends" should be asked "If you are my friend, why wouldn't you want to tell all your friends anyway?"
You will also get callers you don't know complaining about paying full price. Steel your nerves. There are people who can't stand to pay full price for a valuable experience; let them go somewhere else.
Consider the logic: We had a customer call for a room when everything in town was booked. We had a cancellation: room is $165/night for two. She said her Hilton VIP card would get her a room for $100, but the Hilton was full, so would we match that price? (We know the rack rate at the Hilton for that weekend was $289, and no specials accepted). No, Our rate is $165, a good deal for a 420 s.f. king with fireplace. Too much. Later she calls back and now she is mad, "do you know I have spent over an hour on the internet and phone and I can't find a place cheaper than you!" She booked at the full rate; she came for two nights and grudgingly enjoyed the wine, appetizers, the full breakfast. We had only been open a few months then. Now, I am more inclined to tell guests who complain about the price that they should keep looking. Grumpy, cheap people are a drain on the spirit.
It is a mindset: hospitality is a business. B&B is a particularly personal busines, but it is still a business. You set fair rates, charge them fairly. You are not gouging people, you are offering them a choice thay can accept or decline. For them to insist that your B&B experience is not worth your rates is insulting you. You will get plenty of guests who understand this and will be your good customers..
Tom said:
You will also get callers you don't know complaining about paying full price. Steel your nerves. There are people who can't stand to pay full price for a valuable experience; let them go somewhere else.
Agree with everything you said, Tom. But just want to hijack the thread a minute to respond to this line about people who can't bring themselves to pay full price.
I have a repeating couple....they've been here 3 times so far. The first was to 'check us out' because on their next visit,IF we were nice enough, they'd be coming back and bringing their pregnant daughter and her husband for their baby shower. (That got my nose out of joint a little bit, but they came ---and they turned out to be very lovely guests.) They ended up coming back the 2nd time with the two rooms and all was well. Each time she asked me if we discount for AAA or for seniors, and both times I explained that we give so much value for the price....(you know the spiel), and said no.
She called for last weekend because her brother is in hospice and they needed Saturday night but weren't sure about Sunday. Once again, she asked for AAA or senior discount. I'm thinking, no discount for a one nighter on Saturday in my best room, even if it IS January! NO!! I ended up telling her if they ended up staying Sunday, I'd discount Saturday to the Sunday price, and the minute it came out my mouth I was kicking myself in the rear. She was THRILLED with the compromise, and they did end up staying the 2nd night.
I felt a bit mad at myself for caving in, but decided to let it go. (My new years resolution is that nobody can take advantage of you without your permission....so if YOU give them permission then just forget about it and get over it!)
Sorry for the LONG set-up, but I'm finally to the point. They stayed 2 nights. They were, as always, lovely lo-maintenance guests. They left cash on the table BOTH mornings at breakfast (which 99% of guests do not do), as well as cash in the room BOTH mornings for the housekeepers (which most of our guests do not do). So it's not that they can't afford to pay. And it's not that they aren't generous. It's that she's not going to be truly happy if she doesn't get a little something off.
This instance it worked out just fine. She was happy. Housekeepers were happy. We were happy.
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