Thursday, January 29, 2009

Rate integrity?

Do rates have integrity? I don't think so.

But some people do. Some companies too.

I think integrity has more to do with how your treat others, and yourself, than it has to do with the rates you charge for your services.

Last week I received an email from The Breakers in Palm Beach, FL. Stayed there a few times on business trips. The email was offering up to $200 per day in resort credits for food, spa, golf, etc.

Here's the story they're telling:

-They have vacant rooms.
-They want to fill those rooms.
-When you use the resort credit it goes toward stuff that doesn’t cost them $200 to produce.
-You must pay full rack rates to get the credit.
-So you bite.
-Your total cost is less than the last time you stayed there.
-They make a little less on you but a lot more than leaving that room vacant.
-But it’s The Breakers so you know it won’t be available when the place is full.

They get full room rate. You spend less. They fill a room that would most likely go unsold. When you're there, they treat you with respect and super serve you. You have a great time.

Did they lose integrity? Not at all. Probably picked up some positive word of mouth.

And they're keeping people employed.

So, if you make pricing decisions, here are some suggestions:
-Don’t let rooms go unsold.
-Add some stuff to packages that work for your client but don’t cost you as much.
-You’ll be able to remove the stuff when your inventory tightens up—promise.
-If you’re worried about what “everyone” in your industry or market will say, buy some earplugs. (Who is “everyone” anyway?)

And remember, integrity comes from within.

No one can take it from you—without your permission.

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