E-Gouging

If you’ve been following MYOB for a while then you know that one of this blogger’s pet peeves is over-priced hotels that charge big connection fees to use the Internet.  Considering that the $49.99 places almost always offer free high-speed, either via cable or wireless, I think it’s outrageous that the high-priced places think it’s ok to add another ten bucks to the cost of doing business from one of their rooms.

The irony is that your intrepid correspondent is attending the Excellence in Missouri Conference at the Tan-Tar-A Resort at the Lake of the Ozarks.  Keep in mind that it’s mid-November and a room at the Lake is about as desirable as an Alaskan cruise this time of year.  If it weren’t for conventions like this one, the place would be empty.  But it isn’t.  It’s full of business people attending our conference or one of the other meetings that are going on.

Perception equals reality.  Had the hotel increased their rates by $10.00 per night and included the WiFi for no charge, no one would be the wiser or particularly care.  But the add-on price makes it look like they’re gouging Internet users and leaves a bad taste in most people’s mouths.

This may just sound like a tight-wad complaining about spending ten bucks, but I really want you to consider your own business.  Do you charge "extra" for anything that would be  better included in the price?  Can you bundle any accessories along with major items to make the total package look more attractive?  Are you charging for anything that might generate additional sales if you provided it free of charge?

Think about it.  Look at your business through your customers’ eyes.  You just might find a way to improve the perceived value of your offering without really giving up any revenue. 

Please comment if you have any good (or bad) examples to share.

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One Response

  1. If you bundle, usually by the time it’s all tallied up for the customer, it’s virtually impossible for a competitor to match the offer. The idea is to make it completely irresistible to the customer so price becomes even more secondary.

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