Here is the transcription of the video: Hello and welcome to the J'poster Complet channel, the channel that helps seasonal rental owners and seasonal accommodation managers become serene and ultra-profitable entrepreneurs. Today, we are going to talk about a pitfall that I often see among active seasonal rental companies, whose objective, and this is quite normal, is to maximize their turnover. They say to themselves: “With this technique, I will be able to give myself a chance to sell well, to sell more expensively, and for it to work better for my business. » Except what these people don't realize is that this technique actually produces the opposite effect. It is harmful to financial performance and can lead to poor activity performance, which we absolutely want to avoid.
I absolutely want you not to fall for this technique. To do this, I am describing this method to you today. If you like these daily videos and want to support this work and continue to see videos every day, the best way to do so is to put a thumbs up below the video. This will give the videos great visibility and allow me to continue spending time making these videos every day.
So, what is this technique? The technique is to say to yourself: “I’m trying my luck by setting higher prices. If it doesn't go away, I will lower the prices at the last minute. »It's super harmful . For what ? Because it's a bit like saying to yourself: "I'm taking a chance on buying this apartment and if it doesn't sell, I'll sell it later." » We could apply this reasoning to many things. It's really the same principle. It wouldn't occur to anyone to buy an apartment without doing the calculations, then telling themselves that if it doesn't sell, we'll sell it. This wouldn't come to mind because it's a major purchase and we immediately realize that we're going to lose money.
It's exactly the same for prices. Say to yourself: “I’ll take my chance with this high price. If it doesn’t sell, I’ll lower the prices at the last minute” is just as harmful. For what ? Because you have two possible scenarios, and in both cases you lose.
The first scenario is that you are in a period of low demand. Let's say it's January, a weak period for you. If you say, “I'll take a chance on this high price in January,” you'll spend your time taking a chance on a price that's too high, above the market. You have absolutely no chance of selling. Travelers have a lot of choice and are not going to buy at a more expensive price. They will choose attractive offers at affordable prices. So while you are taking your chances, you are wasting time. When the date approaches, generally a week or two weeks before, you cut prices to be sure to rent. There, you often find yourself below market, or even cheaper than what others managed to rent earlier. You've been too expensive for too long, and then you rent cheaply, perhaps not even completely filling your schedule.
The second scenario is to take a chance during periods of high demand. In times of high demand, it is true that this can be an opportunity to test higher prices. But there is a difference between thoughtful testing and saying: “I’m going to put in 150 euros and see what happens.” » Reasoned testing consists of increasing prices by 10-15%, based on concrete data, while monitoring the usual reservation times so as not to miss the reservation window.
The problem with taking a chance is that you end up leaving money on the table and missing out on winning opportunities. I hope that if you have been tempted by this technique in the past, it will make you want to adopt a real revenue management . Professionalize your methods so as not to take your chances, but to ensure you gain the maximum turnover.
If this subject interests you, if you want to train in revenue management or improve your methodologies to earn more money, I invite you to make an appointment with me. We can discuss solutions together to increase your profitability.
For my part, I'll see you tomorrow for the next video. Take care of yourself !