Chum lee wrote:
As a business owner, (non clock puncher/salary earner) for most of my adult life, sometimes the cost of creating the appearance of doing well in spite of not doing well is worth the price. (of course, you cannot do this all the time long term, . . search Ponzi schemes) I don't decide for anyone else.
For example, if you own an RV Park (which I don't) with a 50% vacancy rate, IMO, you have to do something to boost sales because you are losing money on ALL the vacant spaces which cost you a fixed amount per space per night. If you let someone with an RV&EV stay there and even though they use an excess amount (beyond your estimated amount) of electricity, it's still better than getting nothing at all from a vacant space. Tell them they have to stay three nights for the given rate. This is casino thinking. In retail, it's called a loss leader.
Of course, . . . if you have a 10% or less vacancy rate, ALL THE TIME, none of this applies and you SHOULD charge a premium, especially for SPECIAL people. No freebies.
Chum lee
That.Casino is selling something other than the loss leader item. The RV park is usually a one trick pony, that being site rental. When you start discounting to fill sites you often lose revenue since those people that would’ve paid full price are now only paying the discounted rate. Plus there is nothing that guarantees a single additional site rental if they did offer a lower rate or reduced electrical charges etc.
