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Prices go up, but they don't go down

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YellowSocks

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Here's an article on why prices that spiked up with the high cost of oil aren't likely to drop back down again: http://www.foxnews.com/story/0,2933,440785,00.html
Quote from the story: "Coca-Cola is more interested in what Pepsi is charging for a six-pack than the cost of its ingredients, such as high fructose corn syrup, he said. Neither Coca-Cola Co. nor Pepsico Inc. would comment on possible price cuts in the future"
This supports what I claimed in a thread a month or so ago about prices in response to a claim that pricing was all about overhead costs. I refuted that claim and said that no, my prices are all about what my competition charges (even though we all know the "competition" isn't really competition... 1) there are enough room nights for all of us, 2) we all are so different and have different niches, but that's another topic).
The person I refuted claimed that their pricing was all about their overhead costs. I said, no, your pricing is all about what you can charge. They themselves claimed that they were the best in the business and you get what you pay for (my paraphrase... not their actual words).
I said I set my prices on what the market can bear, and try to keep my overhead costs within the created limit. If I could charge more I would. What responsible business owner wouldn't? As my contractor says, "We're in this business to make money." What he means is, he's not a charity and he doesn't do remodeling and repairs out of the goodness of his heart.
I remember when I was still aspiring seeing a comment somewhere that said something to the effect that if your average occupancy is over 50% you should raise your rates, that no one wants 100% occupancy... it means your rates aren't high enough. That you can make more money with less work if you charge twice as much.
Obviously, if we raise them too high we get no occupancy, and that's bad. But I have to say that when I was tempted to lower my rates a month or two ago, and then didn't, I've been grateful since. For a new inn, my occupancy doesn't seem bad. In fact, I've had at least one guest who I thought would have been more content if my rate was twice as much. (We've joked that we need a special rate for a certain set of guests... twice the going rate!)
I want my rates high enough to avoid the budget motel crowd, but low enough that someone who might normally pick a nicer hotel will be glad to "splurge" and spend the extra to stay here. The hard part is figuring out how much higher I can go and still be in that range. I also don't want them so high that I get the kind of guests that Christy in California used to get. I remember her saying that her best guests were when she charged $160 in Georgia. If I adjust for inflation and location... hmmm...
At any rate, I'm grateful for all I read on this forum and its predecessor as far as pricing... we came in "in the middle" of the B&B's here. One has one room cheaper than mine (they should charge more for it). The other raised their rates so that one of mine is cheaper than theirs, but the rest of mine are still higher (and similar in price). So now I'm thinking about raising my rates again, at least on the three nicest rooms. OTOH, they're renting OK, and we're coming in on our slow season (I think... then again, we still don't know all our trends). So maybe I'll wait and raise the prices next spring.
Thoughts and comments?
=)
Kk.
 

JunieBJones (JBJ)

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Why raise them?
(Yes I did read the whole thread) Like stated if your occup is over 50% or you are way low in your area, then I can see it, but what is the reasoning behind raising the rates when you have only been open a year and not fully open?
I think it is crazy to raise them YS. Don't cut off your nose to spite your face. When you have a built in clientele and repeats them perhaps, but otherwise you cannot just raise them due to rising costs. Some on this forum are reporting LOSSES in occup. I would be careful. My 2 cents.
I am going to look at your website again... sometimes it is actually beneficial that we have NOT been to each other's places, so we can see them through guests eyes before they book.
PS Remember you cannot recoup the costs of reno's. Don't attempt to, it will take many many years. Just take advantage of the deductions you are able to claim on your taxes to satisfy that urge.
 

Copperhead

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In regards to the first part of your forum thread, our local paper calls the retaining prices as 'sticky prices'. Most of the prices went up due to higher fuel costs but even though the oil prices are down, the cost of those goods in the stores were manufactured or grown and purchased during the higher price times so reducing prices now causes a loss.
Raising rates at your B&B is a different story...but a sticky one as well. It should be based on many factors including current & projected occupancy levels and ave. rates of your 'competitors' along with comparison of amenities, and costs associated with business.
In a brief look at your site (lovely I might add) and others near you, I do not see why a 5-10% increase would hurt you but given that your slow season is coming, I would wait until spring. After making the increase you may even give a discount to a stay of 2 or more nights. (you may already offer this I did not go in depth in your site).
Good luck!
 

happyjacks

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I think it's a good idea to raise the rates annually. It's more palatable for guests to see a small increase every year than a big increase every few years. Back in my corporate days, my staffing budget had a cost-of-living increase of 3% every year. People are used to seeing prices creep upwards.
A $5/night increase across the board is probably around the 3% range, so reasonable. I did an across-the-board increase after my first year and my occupancy went up anyway.
I would hold off until just before the busy season to do the increase, though. I can't see how an increase will help you now if you're heading into a slower time.
There are other options. After my second year I didn't do across-the-board increases; I went to seasonal rates with a $10 difference between high and low seasons. I was going to increase my high season rates again this year but spring was crappy and july was cool and rainy. Instead, I added a premium for long weekends and special events. $10/night extra for those weekends. The hotels in town increase their rates by 50-150% for peak weekends so travellers are accustomed to seeing a higher rate then.
Next year I might increase the premium. The weekend before last was the Thanksgiving long weekend, the weather was beautiful and the fall colours were gorgeous. There was not a single room to be had within an hour of here. The hotels made a killing and I made an extra $10/night. Hmmm. I'm not a hotel, but I get hotel people on peak weekends anyway.
I'm not sure if I'll increase before the winter high season or wait until summer. I'll probably keep my low season rates steady for awhile. Low season is really low here.
Let us know what you decide!
 

JunieBJones (JBJ)

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My thing is if you are newly open (under 3 years) you really need to get the business established before changing the rates, which are not too low, and not too high for the area as stated with other B&B's there. Obv if they are way way low then they need to be appropriate for a B&B. I think NOONE should charge under $100 in this business, no matter what location. We have to be careful to NOT fit in with the hotels as we are not, and our guests expect much much more.
 

YellowSocks

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I guess I wasn't thinking so specifically about my own rates (although I brought them up, didn't I?) as just throwing it out there as a general concept... we haven't talked pricing in a while. Mostly I was making the following comments/musings:
1) prices have gone up for other things (food) but aren't likely to go down, even though the cause has been removed.
2) this supports my previous argument that rates are not based on overhead costs. (OK, I'll stop being oblique... I was referring to the bandb.com discussion about their rates, which they claim are based on expenses and which I maintain are based on what the market will bear. And why not? I do the same...)
3) is there a target occupancy rate? When do you know your rates are too high (or too low)?
4) how do you calculate such a thing? That is, whether you'd make the same or more money with 70% occupancy at $100/night or 20% occ. at $200/night (as an example... my occupancy is only 70% in July!).
5) I'm glad I started out charging as high as I did.
6) I'm glad I didn't lower my rates last month.
7) I intend to raise them more eventually, although I'm unsure of my timing. I recently learned that the other B&B in town has detached baths... didn't know that! And they're more than me for my smallest room, and only a little bit less than me for my better rooms. (Them, $105 for all three. Me, $95/$110/$110/$120.)
I agree with what Happyjacks was posting... in the winter my rates are a lot higher than the area hotels, but in the summer/peak weakends they jack theirs up and I'm a steal. Somehow I need to figure out how to adjust my prices. Dh considers that price gouging, but I think it's supply and demand. So when I adjust my rates, I have to do it in a way that he'll be able to live with. That, or not tell him... which would never happen!
I just thought we were due for a rate discussion!
=)
Kk.
 

JunieBJones (JBJ)

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Oh sorry I didn't know it was an IN GENERAL discussion.
I think many innkeeper raised rate a little bit last Spring, if they could. I remember bringing this topic up by saying how everything in OUR business is higher, yet guests are feeling it everywhere as well, and we don't want to lose the lodging crowd. Esp wtih gas prices denting their travels as it is.
 

Samster

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I guess I wasn't thinking so specifically about my own rates (although I brought them up, didn't I?) as just throwing it out there as a general concept... we haven't talked pricing in a while. Mostly I was making the following comments/musings:
1) prices have gone up for other things (food) but aren't likely to go down, even though the cause has been removed.
2) this supports my previous argument that rates are not based on overhead costs. (OK, I'll stop being oblique... I was referring to the bandb.com discussion about their rates, which they claim are based on expenses and which I maintain are based on what the market will bear. And why not? I do the same...)
3) is there a target occupancy rate? When do you know your rates are too high (or too low)?
4) how do you calculate such a thing? That is, whether you'd make the same or more money with 70% occupancy at $100/night or 20% occ. at $200/night (as an example... my occupancy is only 70% in July!).
5) I'm glad I started out charging as high as I did.
6) I'm glad I didn't lower my rates last month.
7) I intend to raise them more eventually, although I'm unsure of my timing. I recently learned that the other B&B in town has detached baths... didn't know that! And they're more than me for my smallest room, and only a little bit less than me for my better rooms. (Them, $105 for all three. Me, $95/$110/$110/$120.)
I agree with what Happyjacks was posting... in the winter my rates are a lot higher than the area hotels, but in the summer/peak weakends they jack theirs up and I'm a steal. Somehow I need to figure out how to adjust my prices. Dh considers that price gouging, but I think it's supply and demand. So when I adjust my rates, I have to do it in a way that he'll be able to live with. That, or not tell him... which would never happen!
I just thought we were due for a rate discussion!
=)
Kk..
You could have "quiet season" rates, like many places do in various areas. I have not seen that here.
One of the established B&Bs has kept the same rates for quite awhile (lowest priced) and the other (highest priced) keeps adjusting their prices all the time! I find that confusing, especially for repeat guests. But maybe that's just me. They are hiking their prices across the board on Nov. 1st. I'm staying put for now in the middle of the two. I even have a "Gas Discount" through Nov. 30th along with my online booking special and military and local university discounts. I'm not going to raise rates until I've been in business at least a year. I want to be patient and figure out the ebb and flow of the seasonality here. I think if you change up too many things, it's difficult to see what affect each change had on the overall picture.
 

happyjacks

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I guess I wasn't thinking so specifically about my own rates (although I brought them up, didn't I?) as just throwing it out there as a general concept... we haven't talked pricing in a while. Mostly I was making the following comments/musings:
1) prices have gone up for other things (food) but aren't likely to go down, even though the cause has been removed.
2) this supports my previous argument that rates are not based on overhead costs. (OK, I'll stop being oblique... I was referring to the bandb.com discussion about their rates, which they claim are based on expenses and which I maintain are based on what the market will bear. And why not? I do the same...)
3) is there a target occupancy rate? When do you know your rates are too high (or too low)?
4) how do you calculate such a thing? That is, whether you'd make the same or more money with 70% occupancy at $100/night or 20% occ. at $200/night (as an example... my occupancy is only 70% in July!).
5) I'm glad I started out charging as high as I did.
6) I'm glad I didn't lower my rates last month.
7) I intend to raise them more eventually, although I'm unsure of my timing. I recently learned that the other B&B in town has detached baths... didn't know that! And they're more than me for my smallest room, and only a little bit less than me for my better rooms. (Them, $105 for all three. Me, $95/$110/$110/$120.)
I agree with what Happyjacks was posting... in the winter my rates are a lot higher than the area hotels, but in the summer/peak weakends they jack theirs up and I'm a steal. Somehow I need to figure out how to adjust my prices. Dh considers that price gouging, but I think it's supply and demand. So when I adjust my rates, I have to do it in a way that he'll be able to live with. That, or not tell him... which would never happen!
I just thought we were due for a rate discussion!
=)
Kk..
YellowSocks said:
in the winter my rates are a lot higher than the area hotels, but in the summer/peak weakends they jack theirs up and I'm a steal. Somehow I need to figure out how to adjust my prices. Dh considers that price gouging, but I think it's supply and demand. So when I adjust my rates, I have to do it in a way that he'll be able to live with.
I used to think like your hubby. I thought the peak increase was price gouging and that I would never do it myself. Ha! Funny how things changed after a few years on this side of the fence.
If you want to give your hubby some food for thought, show him the hotel rates during low, avg and peak times. For me it was seeing the chain hotels in town selling a room in November for $69 and the same room on a peak weekend for $189 (or more!). As I said (and as your hubby might say), we're not a hotel. But the thing with peak weekends is we get more 'hotel people' than we do at other times. People that would normally choose a hotel but can't because they are full or because they are super-gouging.
A line under your room rates reading "Add $10/night during holidays and special event weekends" looks dang good to a traveller who's seeing hotel rates skyrocket away out of sight. Of course, this strategy only applies if your town fills up at these times. Supply and demand is age-old for a reason.
Another thing that might resonate with your hubby is to look at it as fair compensation for your labour during holidays. When I worked in printing, I was paid time and a half (or was it double time?) if I had to work on a holiday. Especially since you have a family, and since your husband has a weekday job, it's not unreasonable to put a premium on your time during holidays.
 

gillumhouse

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Raise them in the Spring. Raise your rates a little every year or two. What I did though one year was to raise the rate on my queen room and leave the rate the same in the double bed guest rooms. This created a better rate difference in the rooms. When I added the private bath, I raised the rate on that room to a $30 difference between the rates. No one has batted an eye at the rate for the private bath.
I may hold off this Spring. I will play a wait and see for what happens over the winter. If things look good, I will raise by $5 for the private bath. I will also raise the prices of my packages. I need to keep my profit margin a real possibility.
People who want to stay in a B & B know they are paying for better service, better food, and a better night's sleep - plus conversation. And they are willing to pay for it.
 

YellowSocks

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Raise them in the Spring. Raise your rates a little every year or two. What I did though one year was to raise the rate on my queen room and leave the rate the same in the double bed guest rooms. This created a better rate difference in the rooms. When I added the private bath, I raised the rate on that room to a $30 difference between the rates. No one has batted an eye at the rate for the private bath.
I may hold off this Spring. I will play a wait and see for what happens over the winter. If things look good, I will raise by $5 for the private bath. I will also raise the prices of my packages. I need to keep my profit margin a real possibility.
People who want to stay in a B & B know they are paying for better service, better food, and a better night's sleep - plus conversation. And they are willing to pay for it..
gillumhouse said:
Raise them in the Spring. Raise your rates a little every year or two. What I did though one year was to raise the rate on my queen room and leave the rate the same in the double bed guest rooms. This created a better rate difference in the rooms. When I added the private bath, I raised the rate on that room to a $30 difference between the rates. No one has batted an eye at the rate for the private bath.
I may hold off this Spring. I will play a wait and see for what happens over the winter. If things look good, I will raise by $5 for the private bath. I will also raise the prices of my packages. I need to keep my profit margin a real possibility.
People who want to stay in a B & B know they are paying for better service, better food, and a better night's sleep - plus conversation. And they are willing to pay for it.
Yes, that's definitely the plan!
One other factor that I didn't even raise is potential repeat customers. We've had a few, but we're lobbying hard that anyone who comes here once wants to come back. Had two couples and a mom here this weekend for the university's family weekend. Both couples say they want to come back (one says they'll do it whenever there's a double swim meet and the other says we're their home away from home in Ashland), and the mom is hoping her son picks AU. I remember at your seminar when Dani said if they find you when their kid's a freshman you have them for the rest of the kid's time in school.
Anyway, there's the whole "how does raising rates effect my repeat business" question, as well as the "as we have repeats we'll be more in demand and can command higher rates" issue.
=)
Kk.
 

gillumhouse

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Raise them in the Spring. Raise your rates a little every year or two. What I did though one year was to raise the rate on my queen room and leave the rate the same in the double bed guest rooms. This created a better rate difference in the rooms. When I added the private bath, I raised the rate on that room to a $30 difference between the rates. No one has batted an eye at the rate for the private bath.
I may hold off this Spring. I will play a wait and see for what happens over the winter. If things look good, I will raise by $5 for the private bath. I will also raise the prices of my packages. I need to keep my profit margin a real possibility.
People who want to stay in a B & B know they are paying for better service, better food, and a better night's sleep - plus conversation. And they are willing to pay for it..
gillumhouse said:
Raise them in the Spring. Raise your rates a little every year or two. What I did though one year was to raise the rate on my queen room and leave the rate the same in the double bed guest rooms. This created a better rate difference in the rooms. When I added the private bath, I raised the rate on that room to a $30 difference between the rates. No one has batted an eye at the rate for the private bath.
I may hold off this Spring. I will play a wait and see for what happens over the winter. If things look good, I will raise by $5 for the private bath. I will also raise the prices of my packages. I need to keep my profit margin a real possibility.
People who want to stay in a B & B know they are paying for better service, better food, and a better night's sleep - plus conversation. And they are willing to pay for it.
Yes, that's definitely the plan!
One other factor that I didn't even raise is potential repeat customers. We've had a few, but we're lobbying hard that anyone who comes here once wants to come back. Had two couples and a mom here this weekend for the university's family weekend. Both couples say they want to come back (one says they'll do it whenever there's a double swim meet and the other says we're their home away from home in Ashland), and the mom is hoping her son picks AU. I remember at your seminar when Dani said if they find you when their kid's a freshman you have them for the rest of the kid's time in school.
Anyway, there's the whole "how does raising rates effect my repeat business" question, as well as the "as we have repeats we'll be more in demand and can command higher rates" issue.
=)
Kk.
.
Repeats get last year's rates as a thank you for coming back. Just make sure you tell them when they make the reservation - our rates have increased this year, but as a returning guest we are giving you last year's rate as a thank you for returning to our inn.
They must know that because they are returning, they are getting a deal. The "warm & fuzzy" feel good plus you are saying we appreciate you.
 

happyjacks

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Raise them in the Spring. Raise your rates a little every year or two. What I did though one year was to raise the rate on my queen room and leave the rate the same in the double bed guest rooms. This created a better rate difference in the rooms. When I added the private bath, I raised the rate on that room to a $30 difference between the rates. No one has batted an eye at the rate for the private bath.
I may hold off this Spring. I will play a wait and see for what happens over the winter. If things look good, I will raise by $5 for the private bath. I will also raise the prices of my packages. I need to keep my profit margin a real possibility.
People who want to stay in a B & B know they are paying for better service, better food, and a better night's sleep - plus conversation. And they are willing to pay for it..
gillumhouse said:
Raise them in the Spring. Raise your rates a little every year or two. What I did though one year was to raise the rate on my queen room and leave the rate the same in the double bed guest rooms. This created a better rate difference in the rooms. When I added the private bath, I raised the rate on that room to a $30 difference between the rates. No one has batted an eye at the rate for the private bath.
I may hold off this Spring. I will play a wait and see for what happens over the winter. If things look good, I will raise by $5 for the private bath. I will also raise the prices of my packages. I need to keep my profit margin a real possibility.
People who want to stay in a B & B know they are paying for better service, better food, and a better night's sleep - plus conversation. And they are willing to pay for it.
Yes, that's definitely the plan!
One other factor that I didn't even raise is potential repeat customers. We've had a few, but we're lobbying hard that anyone who comes here once wants to come back. Had two couples and a mom here this weekend for the university's family weekend. Both couples say they want to come back (one says they'll do it whenever there's a double swim meet and the other says we're their home away from home in Ashland), and the mom is hoping her son picks AU. I remember at your seminar when Dani said if they find you when their kid's a freshman you have them for the rest of the kid's time in school.
Anyway, there's the whole "how does raising rates effect my repeat business" question, as well as the "as we have repeats we'll be more in demand and can command higher rates" issue.
=)
Kk.
.
YellowSocks said:
Anyway, there's the whole "how does raising rates effect my repeat business" question, as well as the "as we have repeats we'll be more in demand and can command higher rates" issue.
Nearly 40% of my business is repeats. I give them discounts on stays of 2 nights or more, excluding long weekends. I also do little extras for them (bottle of wine, care package, early arrival, that sort of thing). So my rates have to support that. People don't expect prices to stay the same year to year. They see everything inch up in cost and we're no different.
Our repeats also see the improvements we make (all the repeats loved the new deck this year), and I think they realize we put a lot of money back into the place, not just jack it up and rake it in to support our luxury lifestyle (ya right!).
 

Copperhead

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....not just jack it up and rake it in to support our luxury lifestyle (ya right!).
LOL
Yes, I agree. Repeats look forward to coming here to see what we have done since their last stay. I recall only one previous guest rant over my price change. It had been 5 years since their visit and my rate had gone up $25 + a pool, hot tub and other additions. Did they reserve, NO but you can't keep them all... I think they went to Motel# or other economy hotel.
 

megan

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I think it's a good idea to raise the rates annually. It's more palatable for guests to see a small increase every year than a big increase every few years. Back in my corporate days, my staffing budget had a cost-of-living increase of 3% every year. People are used to seeing prices creep upwards.
A $5/night increase across the board is probably around the 3% range, so reasonable. I did an across-the-board increase after my first year and my occupancy went up anyway.
I would hold off until just before the busy season to do the increase, though. I can't see how an increase will help you now if you're heading into a slower time.
There are other options. After my second year I didn't do across-the-board increases; I went to seasonal rates with a $10 difference between high and low seasons. I was going to increase my high season rates again this year but spring was crappy and july was cool and rainy. Instead, I added a premium for long weekends and special events. $10/night extra for those weekends. The hotels in town increase their rates by 50-150% for peak weekends so travellers are accustomed to seeing a higher rate then.
Next year I might increase the premium. The weekend before last was the Thanksgiving long weekend, the weather was beautiful and the fall colours were gorgeous. There was not a single room to be had within an hour of here. The hotels made a killing and I made an extra $10/night. Hmmm. I'm not a hotel, but I get hotel people on peak weekends anyway.
I'm not sure if I'll increase before the winter high season or wait until summer. I'll probably keep my low season rates steady for awhile. Low season is really low here.
Let us know what you decide!.
happyjacks said:
I think it's a good idea to raise the rates annually. It's more palatable for guests to see a small increase every year than a big increase every few years. Back in my corporate days, my staffing budget had a cost-of-living increase of 3% every year. People are used to seeing prices creep upwards.
A $5/night increase across the board is probably around the 3% range, so reasonable. I did an across-the-board increase after my first year and my occupancy went up anyway.
I would hold off until just before the busy season to do the increase, though. I can't see how an increase will help you now if you're heading into a slower time.
There are other options. After my second year I didn't do across-the-board increases; I went to seasonal rates with a $10 difference between high and low seasons. I was going to increase my high season rates again this year but spring was crappy and july was cool and rainy. Instead, I added a premium for long weekends and special events. $10/night extra for those weekends. The hotels in town increase their rates by 50-150% for peak weekends so travellers are accustomed to seeing a higher rate then.
Next year I might increase the premium. The weekend before last was the Thanksgiving long weekend, the weather was beautiful and the fall colours were gorgeous. There was not a single room to be had within an hour of here. The hotels made a killing and I made an extra $10/night. Hmmm. I'm not a hotel, but I get hotel people on peak weekends anyway.
I'm not sure if I'll increase before the winter high season or wait until summer. I'll probably keep my low season rates steady for awhile. Low season is really low here.
Let us know what you decide!
This is a concern for me also. There are a lot of visitors here for your Thanksgiving weekend and the hotels are charging a premium of around 75%. This year I did not increase the rate for the weekend as things were very slow getting started. There was a 2 night minimum that other inns did not have. We all had similar occupancy.
 

megan

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Raise them in the Spring. Raise your rates a little every year or two. What I did though one year was to raise the rate on my queen room and leave the rate the same in the double bed guest rooms. This created a better rate difference in the rooms. When I added the private bath, I raised the rate on that room to a $30 difference between the rates. No one has batted an eye at the rate for the private bath.
I may hold off this Spring. I will play a wait and see for what happens over the winter. If things look good, I will raise by $5 for the private bath. I will also raise the prices of my packages. I need to keep my profit margin a real possibility.
People who want to stay in a B & B know they are paying for better service, better food, and a better night's sleep - plus conversation. And they are willing to pay for it..
gillumhouse said:
Raise them in the Spring. Raise your rates a little every year or two. What I did though one year was to raise the rate on my queen room and leave the rate the same in the double bed guest rooms. This created a better rate difference in the rooms. When I added the private bath, I raised the rate on that room to a $30 difference between the rates. No one has batted an eye at the rate for the private bath.
I may hold off this Spring. I will play a wait and see for what happens over the winter. If things look good, I will raise by $5 for the private bath. I will also raise the prices of my packages. I need to keep my profit margin a real possibility.
People who want to stay in a B & B know they are paying for better service, better food, and a better night's sleep - plus conversation. And they are willing to pay for it.
Yes, that's definitely the plan!
One other factor that I didn't even raise is potential repeat customers. We've had a few, but we're lobbying hard that anyone who comes here once wants to come back. Had two couples and a mom here this weekend for the university's family weekend. Both couples say they want to come back (one says they'll do it whenever there's a double swim meet and the other says we're their home away from home in Ashland), and the mom is hoping her son picks AU. I remember at your seminar when Dani said if they find you when their kid's a freshman you have them for the rest of the kid's time in school.
Anyway, there's the whole "how does raising rates effect my repeat business" question, as well as the "as we have repeats we'll be more in demand and can command higher rates" issue.
=)
Kk.
.
"I remember at your seminar when Dani said if they find you when their kid's a freshman you have them for the rest of the kid's time in school."
This is not something I find true across the board. We are close to one college and a not too long drive to another. We have had parents here for freshman year and not again. Maybe the kid dropped out? Not sure. One parent has been here for 3 years now. She gets a discount and if her daughter wants to come and stay over there is no charge for her. It's a good deal. Sometimes I think parents call too late for the parents weekends and end up here by mistake. Lesson learned and they call the hotels earlier the next year.
 

gillumhouse

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Raise them in the Spring. Raise your rates a little every year or two. What I did though one year was to raise the rate on my queen room and leave the rate the same in the double bed guest rooms. This created a better rate difference in the rooms. When I added the private bath, I raised the rate on that room to a $30 difference between the rates. No one has batted an eye at the rate for the private bath.
I may hold off this Spring. I will play a wait and see for what happens over the winter. If things look good, I will raise by $5 for the private bath. I will also raise the prices of my packages. I need to keep my profit margin a real possibility.
People who want to stay in a B & B know they are paying for better service, better food, and a better night's sleep - plus conversation. And they are willing to pay for it..
gillumhouse said:
Raise them in the Spring. Raise your rates a little every year or two. What I did though one year was to raise the rate on my queen room and leave the rate the same in the double bed guest rooms. This created a better rate difference in the rooms. When I added the private bath, I raised the rate on that room to a $30 difference between the rates. No one has batted an eye at the rate for the private bath.
I may hold off this Spring. I will play a wait and see for what happens over the winter. If things look good, I will raise by $5 for the private bath. I will also raise the prices of my packages. I need to keep my profit margin a real possibility.
People who want to stay in a B & B know they are paying for better service, better food, and a better night's sleep - plus conversation. And they are willing to pay for it.
Yes, that's definitely the plan!
One other factor that I didn't even raise is potential repeat customers. We've had a few, but we're lobbying hard that anyone who comes here once wants to come back. Had two couples and a mom here this weekend for the university's family weekend. Both couples say they want to come back (one says they'll do it whenever there's a double swim meet and the other says we're their home away from home in Ashland), and the mom is hoping her son picks AU. I remember at your seminar when Dani said if they find you when their kid's a freshman you have them for the rest of the kid's time in school.
Anyway, there's the whole "how does raising rates effect my repeat business" question, as well as the "as we have repeats we'll be more in demand and can command higher rates" issue.
=)
Kk.
.
"I remember at your seminar when Dani said if they find you when their kid's a freshman you have them for the rest of the kid's time in school."
This is not something I find true across the board. We are close to one college and a not too long drive to another. We have had parents here for freshman year and not again. Maybe the kid dropped out? Not sure. One parent has been here for 3 years now. She gets a discount and if her daughter wants to come and stay over there is no charge for her. It's a good deal. Sometimes I think parents call too late for the parents weekends and end up here by mistake. Lesson learned and they call the hotels earlier the next year.
.
The difference is that Socks lives just down the street. Dani is one of only 2 B & Bs in her area. She does get the parents for the time the kids are att the school because she gives them what they cannot get at the Hampton at the bottom of the hill at the University. She is also very small and can do that (and wants to which the other innkeeper does not want to).
 

JunieBJones (JBJ)

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Raise them in the Spring. Raise your rates a little every year or two. What I did though one year was to raise the rate on my queen room and leave the rate the same in the double bed guest rooms. This created a better rate difference in the rooms. When I added the private bath, I raised the rate on that room to a $30 difference between the rates. No one has batted an eye at the rate for the private bath.
I may hold off this Spring. I will play a wait and see for what happens over the winter. If things look good, I will raise by $5 for the private bath. I will also raise the prices of my packages. I need to keep my profit margin a real possibility.
People who want to stay in a B & B know they are paying for better service, better food, and a better night's sleep - plus conversation. And they are willing to pay for it..
gillumhouse said:
Raise them in the Spring. Raise your rates a little every year or two. What I did though one year was to raise the rate on my queen room and leave the rate the same in the double bed guest rooms. This created a better rate difference in the rooms. When I added the private bath, I raised the rate on that room to a $30 difference between the rates. No one has batted an eye at the rate for the private bath.
I may hold off this Spring. I will play a wait and see for what happens over the winter. If things look good, I will raise by $5 for the private bath. I will also raise the prices of my packages. I need to keep my profit margin a real possibility.
People who want to stay in a B & B know they are paying for better service, better food, and a better night's sleep - plus conversation. And they are willing to pay for it.
Yes, that's definitely the plan!
One other factor that I didn't even raise is potential repeat customers. We've had a few, but we're lobbying hard that anyone who comes here once wants to come back. Had two couples and a mom here this weekend for the university's family weekend. Both couples say they want to come back (one says they'll do it whenever there's a double swim meet and the other says we're their home away from home in Ashland), and the mom is hoping her son picks AU. I remember at your seminar when Dani said if they find you when their kid's a freshman you have them for the rest of the kid's time in school.
Anyway, there's the whole "how does raising rates effect my repeat business" question, as well as the "as we have repeats we'll be more in demand and can command higher rates" issue.
=)
Kk.
.
"I remember at your seminar when Dani said if they find you when their kid's a freshman you have them for the rest of the kid's time in school."
This is not something I find true across the board. We are close to one college and a not too long drive to another. We have had parents here for freshman year and not again. Maybe the kid dropped out? Not sure. One parent has been here for 3 years now. She gets a discount and if her daughter wants to come and stay over there is no charge for her. It's a good deal. Sometimes I think parents call too late for the parents weekends and end up here by mistake. Lesson learned and they call the hotels earlier the next year.
.
The difference is that Socks lives just down the street. Dani is one of only 2 B & Bs in her area. She does get the parents for the time the kids are att the school because she gives them what they cannot get at the Hampton at the bottom of the hill at the University. She is also very small and can do that (and wants to which the other innkeeper does not want to).
.
gillumhouse said:
The difference is that Socks lives just down the street. Dani is one of only 2 B & Bs in her area. She does get the parents for the time the kids are att the school because she gives them what they cannot get at the Hampton at the bottom of the hill at the University. She is also very small and can do that (and wants to which the other innkeeper does not want to).
We get parents enrolling or parents weekend, after that the kid flies or drives home for every other ocassion.
 

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