Our first "Offer"

[Marks]

Why not apply the budget airlines approach and put prices UP for peak weeks the longer they are unsold and people become desperate.

I have 10 days available in August which I would not think of discounting until mid July but I am thinking of adding 10% to my August weekly rate now and then perhaps 'discounting' by that amount if unsold come July. A tactic used by most retailers.

[la vache!]

I suppose that is the right way to run a business, but I don't feel comfortable charging over the odds for something when I live on site and have to face people every day. I know something is worth what people will pay for it, but my Peak prices are about right and increasing them by 10% would perhaps not make for a happy customer when they arrive.
I get a lot of repeats and recommendations so I know I'm doing something right, even if I could make more money by being a more savvy business person.

[Nemo]

Yep, hope to get to where you are some day LV, and hopefully with some profit to show for it!

[golfing girl]

I recently had an agent phone me up and say they had an interested party but they wanted a reduction of £50 for a week in JUNE!!!! Too early to think of reductions so I said NO.
I was surprised that someone would ask an agent to ask the owner for a reduction and so far in advance. I had someone book the next day via the agent for the same week....was it the very same person...I don't know, but I'm glad I said no.

[Marks]

I wouldn't be charging over the odds as I believe my apartment is worth more than I can realistically charge for it given the fierce competition in the area. There are hundreds of apartments available on the Costa Blanca so I have to keep my prices at the top end of what is realistic for the area, size etc. I've upped all my prices this year but by a maximum of 7%, 2010 prices were held at 2009 rates. I have been renting this apartment for 10 years and have only been able to increase my peak weeks by just under 30% since I started, that's the reality of being a 2 bedroom apartment on the CB.

I get a little repeat business outside of peak season (I have Danish guests arriving Friday week for their 3rd visit) but peak season guests rarely return, and not because I am doing anything wrong judging by my guestbook comments. Upping prices and then discounting doesn't cause me any problems and I rarely see the guests.

[la vache!]

I suppose it is different when you live on site. For me, it really is a lifestyle choice more than a way to make a lot of money. So having a lot of guests who return or new ones who are recommended by previous means a lot to me (and my kids).

[kendalcottages]

I think the thing is, though, LV, that the two aren't mutually exclusive. You can make money / have the lifestyle choice AND have returning/referred guests, surely?

[wallypott]

KC I agree.

LV - Just imagine a time when you have no more mortgage, then surely it will become a more profitable enterprise. Unless you then decide to expand the empire! Of course as the kids get older, costs are going to increase (uni or whatever is not going to be free in France for ever).

As for August, I suspect that you could have waited and probably got the booking at full price, and the justifications sounded more like you were trying to persuade yourself, rather than anyone else, that you had done the right thing! Of course having it booked up gives a certain peace of mind, but you can only sell it once! Although it would have been hard to turn down returning guests.

I have two weeks in July left, having only sold one high season week since I increased my prices, much like Marks suggested, but I'm only going to decrease back to my original price in May (unless the bank gets antsy before then).

Last year my properties were only on the market at the end of May and we still had a lot of demand for August and July, so I'm hoping that the late askers will still take up at full price. Of late, take up in the small gites has been gradually catching up with the beach house. But I'm still a long way from my target number of weeks everywhere.

And my marketing spend is still completely our of control! I can't imagine I am going to be paying any impots for years to come at this rate! (I've gone for LNP réel by the way.)

[la vache!]

I think the thing is, though, LV, that the two aren't mutually exclusive. You can make money / have the lifestyle choice AND have returning/referred guests, surely?

I said make a LOT of money
OK, it wasn't my best decision ever, but I'll have to take the hit now and spend a little less money on refurbishment next year. I have peace of mind now that there are only 4 weeks left in May over 3 gites to sell now from 9th April until the beginning of September. Of course I'll kick myself as soon as I get an enquiry for that week in August, but enquiries for my big house are extremelyquiet from the UK market (compared to previous years) at the moment.

Apologies to GB, I've completely hijacked their thread. Sorry GB

[greenbarn]

Apologies to GB, I've completely hijacked their thread. Sorry GB

No apologies needed LV! There's some interesting views, as ever, and my OP was more a case of putting my thoughts and feelings into words rather than anything with an expected direction. As the saying goes, "if you don't know where you're going it doesn't matter how you get there". (I might use that as my signature.......)

A lot has been said about discounts, and I was somewhat narked by the nature of the "request"; having already explained the discount for one couple, I struggle with being asked for another discount because they're only one couple...... and because if they booked somewhere smaller, it would be cheaper. (Well, there's a revelation!:roll: ) As others have said, I don't have a problem with people asking for a sensible reason such as a last minute booking. We'd probably give it, too.

[kendalcottages]

I said make a LOT of money

Touché.

...I was somewhat narked by the nature of the "request"; having already explained the discount for one couple, I struggle with being asked for another discount...

Just a thought, GB, but do you think that by telling people at the onset that "this is a discount", it possibly sends out the message - to a handful of people - that "we're here to be bargain with you"?

I'm not saying it does... just wondering.

[greenbarn]

It's an interesting thought KC. We have a standard discount for one couple occupancy; maybe I'll refer to it as a "one couple rate" from now on and avoid the D-word. Happy to consider the D-word for last minute, but when it's a couple of months away and a case of "that's more than we want to pay, how about £X" I think I'll be sticking to the F-word. The one that ends in off.

I suppose there's another side to using the D-word; by stating that a rate is already discounted, are people more or less likely to expect a further reduction? Hmmmmm.... There must be people out there making a fortune by studying the psychology of pricing and selling their findings. I wonder how they price their services.....

[Giddy Goat]

but when it's a couple of months away and a case of "that's more than we want to pay, how about £X" I think I'll be sticking to the F-word. The one that ends in off.

You do make me laugh GB.

Seriously though, I'd be inclined to think that a discounted rate is not subject to further negotiation. But then, things (and people) are changing ....

[Mouse]

I would too GG but having split my rates by showing that I would offer a discount for family groups...I have then still been asked for further discount.
When I publish the prices in previous years (no discount) I was rarely asked.
Could there be a connection? Or is it due to the increased pressure on disposable income? Who knows.

I agree that the few times I have been told what I should take I've been irked. Purely because I feel it's bad manners. If you hope to have a reduction then surely it is polite to ask and leave it in the hands of the owner to decide.

I forget the old addage of our local shopkeeper...something along the lines of 'don't ask for discount if you're easily offended'

Of course last minute bookings are different.

Mouse
x

[kendalcottages]

I think I'll be sticking to the F-word. The one that ends in off.

You've got me confused. What's he got to do with it?