Would you give discount on a discounted price!

[Foxandsot]

Hello All

I put a late deal on Holiday lettings for May and June as bookings for that time are dire! I reduced the price by £195, making it £400 per week.

I have had 2 enquiries from this ad but both are asking if we could discount it further. I went back to one of the inquirers with a further £25 discount, haven't heard from her. Just had an email from 2nd inquirer, saying that they love our place but it's the top end of their budget, could we reduce it further. If we reduce it too much, it's really not worth it but then again, a bookings a booking!

What would you lot do!!

Mx

[la vache!]

Are you really not going to make any money on it if you let it for £350 for example? I'd take the booking at this stage, definitely.

[guest 4]

Hi M,

If it's the 'top end' of their budget that means it is within their budget. I personally think that £400 for June is giving your place away. £10 per person per night? they have got to be kidding.

I could not afford to let mine go at that money, after maintenance, tax and all the other expenses it is not worth the wear and tear for the profit and possible headaches.

If you have an enquiry from a group of six that can only afford under £400 for a weeks rent I would redirect them to Butlins.

Ruth

[Foxandsot]

Hi LV & Ruth

I've just emailed him saying we can do it for £350,

I find it quite odd that only one person has asked for discount in the past (my wonderful first guests!!) and now that I've put a discount on the price, everyone wants even more!!

Mx

[Mouse]

I was once told on a business course why this happens...and I can't for the life of me remember the reason now! Its something to do with the 'opening the door for discussion' syndrome....i.e. if you give discount - people don't feel cheeky asking for more as you've already put yourself in the negotiating arena.

Another I do remember was always make sure you put a value on something (i.e. even if its a free service always say 'usually worth xyz') as people don't value anything they get for free...oh and this one; if you offer someone a choice of 2 dates/times etc - they will always go for the 2nd (even if its before the first date)..something to do with the way we think (I think!)

hope you get a booking from them!

Mousie
x

[Foxandsot]

He's just come back to me and said he wants to book

[Mouse]

Well done!

Mousie
x

[guest 4]

Well of course he would at that price. He's a lucky (cheeky) man.

I am pleased that you have another booking M, but just be careful that you are not letting it go below the odds. But you never know, this could turn into a few recommendations.

Cyprus has the reputation of being a little bit pricier than some other destinations, I also know that some owners are struggling this year because of the flights being more expensive.

You have to weigh up the cost of them all staying in a hotel at that time of year. Don't be tempted to let it go too cheaply otherwise the profit you make will not allow you to provide the top class place you are offering.

Congrats on another booking

Ruth

[Guest3]

If you have an enquiry from a group of six that can only afford under £400 for a weeks rent I would redirect them to Butlins.

I think even Butlins may be out of their budget!

Talking of discounts...I had an enquiry yesterday about a long term rental for 2 months (Jan & Feb 2008). Rather than reply with an email I telephoned and spoke to the Husband (the wife made the enquiry). They wanted at least a 3 bedroom property as they had 3 Daughters who also wanted to visit them while on holiday. I didn't discuss prices but my first sentence to him was to ask him what his budget was..."Well" he said "we are looking for 3 months really, Jan to March for about 2000 euros".

Yeah right!...2000€ for a 3 month rental of large 4 bed villa with a private heated pool! Well...as you can imagine the 'phone call ended very quickly!
What planet do some people live on!

[Fil]

Beware, there are a lot of people thak ask for a discount that in fact will accept the first price anyway.

I never give discounts as I believe the prices are fair for the quality of the offer and most of the times I had people asking for them they just accepted the initial price afer my clear and short negative.

[la vache!]

I don't like giving discounts to people who ask for them, but if it comes to the last minute and I have the opportunity of earning £350 or having the property empty for the week and earning zilch, I'll swallow my pride and take the booking. Business is business, after all!

[guest 4]

But Moo,

Sometimes the cleaning, maintenance, leccy, tax as well as the wear and tear and time spent makes it a loss, I would rather leave it empty than give it away.

Ruth

[Big Sis..]

Kip said

If you have an enquiry from a group of six that can only afford under £400 for a weeks rent I would redirect them to Butlins.

I better get a stack of Butlins Brochures to send to most of my guests then

[Foxandsot]

I think that we are not in a position to turn bookings down as we need all the recommendations we can get. We are very green though , when we get the electricity bill in, I'll let you know if it was a bad, bad decision

Mx

[Fil]

I. Business is business, after all!

Not giving discounts as a principle is not an emotional decision, it is a rational and cold business decision. If you grant the discount to someone who would pay the initial price if refused, you are loosing money.