Discounting

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bessie
Posts: 585
Joined: Sun Sep 30, 2012 3:45 pm

Discounting

Post by bessie »

Sorry if in wrong section.
I have noticed that the large agencies are discounting round here ,15% late booking,20% for coming weeks.
At what point do you discount,I seem to be on catch-up just when you think you prices are competitive you find you are not.
With an agency does anyone have an agreed Lower limit,I was told I had to sign up to the full package which included their discounting ,it seemed all about the magic I'm booked xxx weeks at what ever cost.I don't want to sign up unless I can agree a limit on the discounting.
ianh100
Posts: 598
Joined: Thu Jan 10, 2013 4:37 pm
Location: Sherborne Dorset

Post by ianh100 »

Hi Bessie

Not sure which sites you are referring to. In my experience many of the listing sites (OD, HL etc) actually ask you to pay more money to list in these discounted promotions. I did try it when we first started but for me it did not bring much more business, brought in less revenue and cost more in fees.

Not sure how it works with commission based sites.
EdinburghCityApartments
Posts: 77
Joined: Tue May 14, 2013 1:47 pm
Location: Edinburgh
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Post by EdinburghCityApartments »

Hi Bessie,

I reckon you have a dilemma on your hands.

On one side, I'd say these are the people with experience and will know what to be advertising your property at and what levels of discount to provide etc.

On the other hand, I know of a property in my area where an agency has exclusivity over all dates and a booking came in over New Year (very lucrative time here) but at a lower cost than last year and cheaper than it should have been because of a "long stay" discount being applied for 4 nights.

Is there maybe someone else in your area (a small time property manager who has their own property and manages a couple of others) that would talk to you and possibly manage for you on a more informal basis (still a contract but a little more input from you?)

Good luck!
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Bassman
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Location: Charente Maritime
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Post by Bassman »

I have never had much luck with discounting on listing sites its usually meant spending more with no return. On the other hand when things are slow I do sometime discount when i receive an enquiry, its hard to say whether its secured the booking or not as they may well have booked anyway. On the other hand if they dont book i dont worry that i should have brought the price down :D
bessie
Posts: 585
Joined: Sun Sep 30, 2012 3:45 pm

Post by bessie »

Thank you ,
Edinburgh I wish there was someone in my area.
I think my problem is I work all the figures out too much,listed with one of the big boys first year and everything I made in the summer subs the winter.
OH insists the market is full of holiday cottages ,
I would list with large agent if only I could put a bottom in the price but that's not how they work I'm told.
I would like to chat with local homeowners but everyone seems to be protecting their own patch.
There are no small agents round here or I have not found them.
Joanna
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Joined: Thu Aug 23, 2007 3:12 pm
Location: Chester, North West England & Sidmouth, East Devon
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Post by Joanna »

I don't exactly discount on listing sites, I just drop the list prices a little if some dates are looking hard to book. Sometimes it's a case of adjusting the seasons - if I suspect I've started the peak season too early I move a peak week back to mid season prices.

I probably look at adjusting the prices around 4 weeks ahead, depending on how worried I am about bookings and how much else I've got on at the time. It's definitely not an exact science.

I've also started emailing previous guests about short notice availability and I do offer them a discount. That has brought in a few bookings and as I get my mailing list more organised hopefully it will bring in more.

For us, the ability to be flexible about our pricing is a big reason to avoid large agencies.
Jo

Joint owner of Baker's Cottage in Chester & Chandler's Cottage in Sidmouth
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