Here’s how it works,
In the current economic climate, in order to attract customers, many businesses think ‘discounting’ – 10%, 20%, 30%, 40% and even 50% (or more) off.
What this does to your bottom line and profits is horrendous. And while cash flow is important, there are other ways of generating cash rather than going head to head with your competitors in the discounting battle.
Once you get known as a discounter then it’s often hard to regain lost ground since your customers will see you as such and simply wait until the next round of discounting rather than paying full or near full price.
One of the best ways to avoid this trap, but at the same time boost business, is to ADD VALUE with rewards which, although the value perception is high, (often very high), the actual cost to you, the businessperson is low.
In a perfect world the value of the reward will be such that it is not inconceivable that customers might purchase your goods / services as much for the reward (which they can’t get elsewhere) as for the actual item itself.
One offer proven to meet this test is Free Hotel Accommodation.
This particular promotion involves over 150 hotels (161 to be exact) throughout the UK, Republic of Ireland and the Channel Islands. The hotels are offering free accommodation for two people for anything from 1 night up to 7 or more nights (depending on availability) on the basis that guests pay for their meals and any other sundries normally charged for, such as drinks, spa facilities (unless free), etc.
You may ask how can hotels afford to do this – and why should they? The answer is very simple.
Most hotels know that at any given time of the year they are likely to have a certain vacancy factor. It could be 10%, 20% or 30%. Once a particular night has passed you can never ever sell that night’s accommodation again. On the other hand the hotel has fixed costs in the form of rent/mortgage, taxes, staff and utilities. These need to be recouped.
The cost of servicing a room involves say 20 minutes of a chambermaid’s time (£2) plus linen changes when a guest leaves. The cost of food for breakfast / dinner may come to £10 (staff wages are a fixed cost). Add this to the earlier cost and you have a maximum servicing cost of say £15 per room night. On the other hand, breakfast and dinner may come to a perfectly reasonable £30 (£10 for an English breakfast; £20 for dinner). If there are two people sharing the total combined cost would be £60. The hotel, whilst it might be losing say £100 in accommodation costs, is at least gaining a reasonable margin on the food and at the same time introducing the property to a couple who, if they have an enjoyable experience may choose to return at a later date as a fully paid up guest.
Here are some ways in which you can offer the promotion. The permutations are endless and we’re happy to give suggestions to meet your particular requirements if you wish.
Some Marketing Scenarios
Receive up to 7 nights free hotel accommodation when you [what ever it is that you require your prospect of customer to do]
Come into our showroom this weekend and test drive the new [car model]
and we'll give you a certificate entitling you and a companion up to 7 nights free hotel accommodation. You only pay for meals and drinks.
Spend £100 or more on any ring from our current collection and you'll receive up to 7 nights free hotel accommodation worth up to £500 or more. You only pay for meals.
Buy one of our new widgets worth £75 anytime before [date] and you'll get up to 7 nights free hotel accommodation at no cost – other than your meals.
Join [Name of health club] anytime during [Month]
and you and your partner can stay in one of over 150 hotels completely free of
charge apart from your meals and sundries.
Pricing
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10 |
£10 each |
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25 |
£9 each |
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50 |
£8 each |
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100 |
£7 each |
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250 |
£6 each |
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500 |
£5 each |
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1000 |
£4 each |
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5000 |
£3 each |
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All + VAT/freight (at cost) |
To Order
Please click here to complete the online order form or call Eurocom Marketing on 0800 970 4864
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