Everyone loves a bargain! We are a nation hungry for discounts, so much so we no longer pay ‘full price’ for a product or at least think we don’t.
The question is, just how good is the bargain?
During the past few years event venues have all tried a number ways to entice clients to book. Free Champagne receptions (adding value) and 0!% discounts (a bit DFS surely) to name a few. A discount needs to be deep or at least show the client that the product was actually worth what the price was before the discount (which 9 times out of 10, it’s not). Do discounts just cheapen your product?
Here at Merlin Events we introduced price match promise to our clients. We targeted our key competitors and price matched ourselves with a 10% discount if one of the competitor’s quotes were cheaper than us. Some of us in the industry have even resorted to taking our clients on free holidays. It’s a nice gesture but can become rather expensive and once offered the client’s surely will expect it each year? Is this a form of bribery and one in which only the larger companies can execute, which means the smaller operators are excluded?
How do we make the bargain a good bargain?
I think clients really are looking for the best value with transparent quotes, they do not want hidden costs, inflated drink consumptions (drinks packages are far better). Venues and caterers that buy equipment and can drill costs down will be the winners as we begin to come out of recession. I live in Greenwich and at present about 2000 apartments are going up as quick as they were in Dubai during the boom times.
Offering dynamic pricing can ensure the diary fills on quieter days and maximises yield, this also gives clients an opportunity to buy into your product at a lower price point. This is a form of discounting but works to everyone’s advantage without cheapening the product.
Do you think discounts make you look desperate?
This blog was written on Tuesday 28th May posted by Michael Aldridge