How can I improve my profits?
You can improve your profits by reducing your costs and increasing your sales.
For practical tips on how to reduce your costs, see Cost control
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To increase your sales, try the following:
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Remember!
To calculate your sales, multiply the number of customers by the average price charged. This should give you a reasonable estimate in most cases.
During a recession, it may be difficult or impossible to increase your prices but it is worth exploring the following options for use when the economy recovers. You may be able to increase your prices by improving your:
- product
- location
- promotional activities
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- Link with local tourism operators to offer a packaged product, eg accommodation coupled with hill walking, mountain walking, walking tours or cookery lessons.
- Offer family rooms, play areas for children or additional bedding.
- Provide a recreational area, bins and dry rooms for walkers.
- Aim for consistently excellent customer experience and customer service.
- Provide on-site entertainment, childminding facilities, adventure itineraries, and transport to and from activities.
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- Improve your interior decor and exterior facade.
- Provide adequate car-parking and bicycle storage space, games rooms and other onsite guest facilities.
- Encourage customers to relax in a garden area by providing adequate and comfortable seating.
- Include security/CCTV.
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- Link with local tourist operators to offer and jointly market a packaged product, eg accommodation coupled with hill walking, mountain climbing, walking tours or cookery lessons.
- Create a word-of-mouth buzz about your accommodation business.
- Promote your scenic location as being superior to that of your competitors via newspaper or magazine editorials.
- Promote special offers via your website. Update your website regularly and ensure that your business is prominently listed on search engines such as Google.
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You may be able to increase your sales by opening for business in the off-season, but by far the most effective and cheapest way to attract more customers is by word-of-mouth. Ensure that you have positive interactions with your guests while they are staying at your property and that they leave totally satisfied with their experience.
You may also consider promotional activities such as website offers, flyers and brochures.
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- Link with tourism operators in your locality to offer a packaged product, eg accommodation coupled with an adventure activity, fishing permits or spa treatments.
- Consider collaborating with competitors in your locality for mutual benefit, eg sharing pick-up and drop-off services.
- Increase your sales by, for example, providing on-site recreational facilities such as a tennis court or a games room. Consider offering packed lunches or evening meals to walkers. Pay attention to small details, eg, provide a welcome basket, internet access or discounted tour bookings.
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