Small Revenue can mean Big Marketing
Monday, December 31st, 2007Seth Godin Agree’s with me when I say, over deliver. He recently posted a well thought out article about Nickel and Dimming, vs simply offering everything to get more return visits period.
While he doesn’t outright say which method he thinks is the better route (offering all services up for free to get more return customers, or charging a little bit for lots of optional benefits – such as WiFi at a Hotel), but it is pretty clear that he favors the all inclusive offer the clients everything mentality.
This makes sense, like many people I am constantly frustrated when I sit down at a StarBucks with my laptop only to find they want me to pay $10 that day to use their WiFi. Guess where I don’t go to work when I want coffee? Starbucks.
However in some instances it might make sense to charge a little bit, as long as it is reasonable, for extra services. Rolling those nominal charges into additional services and benefits for the customers could help set yourself apart from the competition with out damaging your bottom line.
For example charging $2-3 dollars a day for wifi, with an average 100 people a day using it over a period of a year will generate over $100,000 in revenue. That could then be rolled into an improved lounge area, complementary video rentals, etc…
You are unlikely to forgo a nice hotel for an additional $6 – $10 total of wifi usage, yet it can raise the status of your establishment significantly. It is all about creative development.
