RATES: How Much Is Too Much?
- Sue Marko
- Jan 25
- 4 min read
I went on a ski trip last weekend. After a super fun first night there, the first day out on the slopes, within just a couple of hours, my right foot started to hurt. I mentioned to my group that I was hoping not to have to invest in new boots this year, that I knew it would be a big expense for my complicated feet (abused by many years of sports gear, high-heels, improperly fitted shoes, etc.). But, by shortly after lunch I was done with my ski boots - something had to change right then. 3 hours later I paid a bill that was well beyond what even I thought new boots could come close to, ugh!
As mentioned, it took 3 hours to complete the transaction - not because they were incompetent, too busy or anything negative like that; quite the opposite. It took 3 hours to make the right boots fit my feet. First there was choosing a boot that matched my arch, foot size and skiing ability (no discussion of color or brand was allowed - lol, that's pretty much the only thought that went into my previous ski-boot-purchases). Then there was the customizing of orthotic insteps to support my very high arch, this involved heating/molding/cooling of boots, insoles and insteps so that they were completely fitted to each foot. The final step was to punch out the boots where there could be made a little extra room for what seems to be a bunion on my left foot. I have been skiing for more than 50 years and I've never had anyone spend 3 hours to create the perfect boots for me... until last weekend.
The next day we hit the slopes and I could not believe the experience. We skied until the end of the day, didn't even stop for lunch, just one quick pee break. I was completely astonished at what a difference these boots made to the way my feet felt, the ease of walking, skating and skiing in them, but most importantly, the improvement in my skiing! I ski better in these new, fancy boots that fit me and feel like my feet are wrapped in a cozy mattress! After that one day in those ski boots I was no longer even a bit sticker-shocked, in fact, I would say that it was absolutely worth every moment Gabe (the Boot-Tech) spent fitting me and also worth every dime I pumped into that purchase.
How I Chose My Rates at My B&B
Anyone who knew me when I was running the B&B knew that I knew what I was doing... and that I was damn good at it. I knew everything about my competition and made sure that, year after year, I was offering not just a stand-alone experience in a beautiful and shamelessly comfortable venue, but that the food and the customer service blew every other business in the area out of the water.
I had a budget, of course, for my operational expenses, but it was high because the rates supported it. My guests slept on very expensive beds, ate the best quality ingredients and could pretty much count on me not leaving one detail unpolished. I was providing the best and I charged the highest rates; this is one of those chicken-egg things, thinking back, I'm not sure which one was the driver lol.
If You're Better, You Should Charge More; MIC DROP
The point is this: your rates should be determined by you, of course, but should also reflect what your competition is doing. This requires a little bit of espionage (so fun!) but it's worth it, and you might even pick up a good little idea from it to add to your own show. I used to look up my competition's websites all the time, or when Air B&B and VRBO came along I would check their listings, amenities, prices, everything I could find out about what they were doing. I'd sometimes steal ideas but I would always improve them, or custom fit them to my offerings. Then, I'd make sure that my prices reflected the differences between us and backed up my rates with pics of the wonderful amenities, mouthwatering food and accolades from former guests all over my website.
I guess you can surmise (correctly) that I was almost always the most expensive B&B in the area! I used to always joke, "someone's gotta be the priciest, might as well be me". But I never just sat on those high rates, I always worked hard at/for them... and I deserved them.
The Value in Reviews
There's a chapter in my book dedicated to REVIEWS; it's one of my favorite chapters because it's so funny! The chapter showcases some real head-scratchers, even some very bad reviews, lol, from those 14 years of crazy-making where the guests' expectations were actually quite beyond ridiculous and there was no possible way that I would ever get a kind word from these charmers. What you won't read in the book are the hundreds of 5-star reviews that I received over those years, they far outweighed and outnumbered (by probably 99%) the others. Most of the great ratings included a comment acknowledging the rates but also confirming that the guests thought it was WELL WORTH IT, some even suggesting that for what they experienced they thought they thought it was the best bargain ever.
The bottom line is that you can charge whatever you want to, provided the customer sees the value of their experience with your B&B vs. the competition. Go out of your way to create a niche all your own and you will be rewarded with those awesome reviews followed by increased bookings. People love to feel welcome, comfortable and like they made an awesome discovery; give them these vibes and you're going to have 5-star-review-fans flocking your way!
Thank you for dropping into my website and hanging out in my blog for a little while! I'd love to hear from you; your feedback or suggestions for topics is welcome... see you again soon!
Comments