purelyfrance

Setting rates - part 2.

A management concept that has been around for elephant years (I know the expression is usually donkey years but I don’t have a photo of a baby donkey) is K.I.S.S. an acronym for keep it simple, stupid.  A simple display of your prices on your website is a powerful selling tool. 

We are constantly amazed to see a multitude of pricing rates for some properties. They may show 6 different seasons, prices for each room can be different and then extra charges for all sorts of unimportant things can also be listed.  Simplicity means easy to display, easy to read and easy to understand. The reality is a ‘surfer’ will click on somewhere else if it is difficult to follow your pricing structure.

This matrix below was copied from an actual website, it could benefit from some ‘user friendly’ simplification.  My apologies in advance to the owner, but it is a bit of a minefield.

The second part of keeping your pricing simple and user friendly relates to your terms and conditions.  Again it is very easy to try and display every conceivable detail when all you end up with is a lot of uninteresting and often negative (to the customer) comment. Again, if those are brief and written with clarity the more chance you will have of ‘reeling in’ that customer.

 Beneath our pricing matrix we list 6, short, simple statements covering our conditions. 

• Prices are based on Two persons
• For a Third or Fourth person add 110 € each per week
• An additional charge applies if heating is required
• Prices are quoted in Euros
• Prices are valid through 2007
• We are closed December and January

We do not state on our website details concerning deposits, full payment, refunds, arrival times etc, those are detailed to guests when they make a booking.  We so rarely receive a query on these matters, occasionally perhaps from an American:)

We project our ‘guest friendly’ attitude in other ways too.  We would never dream of demanding a ‘bond’, that is something more akin to long term/permanent rentals. We also think it is not customer oriented to ask for total payment prior to the guests arrival. We note some property owners request full payment two months before, that is a bit rich in our book.  We find a deposit (we transact 20%) is sufficient to ensure bookings remain committed.

On the subject of payment, at first we avoided credit cards like the proverbial plague, thinking their commisson rates would be in the 3-5% range.  But then, having been stung strongly by bank charges we decided to investigate. We were both surprised and delighted to learn how low the charges are for accommodation, our bank in Provence applied 0.8% and here in Burgundy it is 1%.  We use Banque Rhone-Alpes in Beaune. And having the V.A.D. facility (vente a distance) means you can transact the deposit without having the credit card in front of you.  We know some owners prefer to deal in cash, but credit cards make it easy for you, easy for your guest.

We also think it is a ‘turn off’ to list ‘extra’ costs, such as a cleaning fee, or breakage costs. Cleaning is of course a legitimate cost but if incorporated into your prices it removes the ’stigma’ of guests feeling like they are being hit up for extras. In our view an additional 20 € on your rates is unlikely to have any adverse effect on your bookings.

So, apply the K.I.S.S. principle and you may soon find you are kissing more guests as you welcome them to your property. On both cheeks here in Burgundy, 3 times in Provence, I understand it can be 4 times in Paris; any other regional variations??!!

A Bientot,

Bruce.

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This entry was posted on Wednesday, April 11th, 2007 at 10:58 am and is filed under B n B & Gites for fun and profit. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.