Is your small business stuck charging low prices for your products or services? The problem might not be what you’re selling. Here’s how one business raised prices by changing its name.
Is your small business stuck charging low prices for its products or services? The problem might not be what you’re selling. Turning things around could be as simple as taking on a new business name– one that implies higher quality.
That’s the takeaway lesson from a recent episode of Hotel Impossible, the new Travel Channel show in which expert hotelier Anthony Melchiorri visits floundering small hotels and helps their owners turn them around. On a recent episode Melchiorri and his team visited a small hotel in Miami that has $1 million in debt. Melchiorri first pointed out that the place had a problem with branding. Some signs, including the big neon sign on the top of the building, said “Motel New Yorker.” Another on the front window, though, said, “The New Yorker – Boutique Hotel.”
Consumers have a very different impression of the word “motel” than they do of “hotel,” Melchiorri explained. One is considered lower quality, while the other is perceived as more luxurious. Fixing the inconsistency and positioning the place as a hotel could enable the owners, Shirley and Walter Figueroa, to charge more than the current $79 a night rate — up to 70 percent more.
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