Recently I read an article on The Inc.Life by Chris Matyszczyk, about a petty ad-on charge by a
major hotel group. This hotel group has decided to charge an additional fee to customers
who cancel any booking for any reason in a select number of their hotels. It
does not matter what the reason for the cancellation, they will charge a fee.
The word “petty” may be defined as trivial or little, or
small. It also can be defined as spiteful, malicious, or vindictive. I prefer to
define it as cheap, nasty, and niggling. Perhaps it should be considered as all
of these and more. Petty business practices certainly are not good customer
service and often will drive customers away. Petty practices never represent Gratitude
Marketing.
Very often I find myself writing about those business
practices which represent bad marketing that will cause customers or prospects
to sever any ties with a business. I know that there are many good practices
that show us what we could do to attract and retain clients and foster their
introductions to other prospects. However, there are lots of wrong business
practices which we must see for what they are, to be avoided at all costs.
Petty charges definitely fall in this category. Practices of
this type will not foster a feeling of appreciation from your prospects or
customers. They will see us as business people who only want to grind every
penny from customers that they can and without any gratitude for the relationship
or introductions to other prospects. Unless we are the only source for what the
prospects want, we cannot afford to drive away business.
Airlines have become experts at petty practices. Luggage
fees, charges for rebooking, even when they, or the weather, may be the reason
for the change, upgrades to better seats, and fees for using our frequent flyer
miles all have become “normal” practices. Whatever airline flies to our
destination may be our only choice, but the hotel that we use may have many competitors.
The consumer might very well have a choice with whom to spend their money.
Sometimes a business claims that their “fees” are lower than
their competitors’ fees. That may be true; however, why have these fees at all?
Would it not be better to advertise that we are “fee free”? Airlines began charging
subtle and small fees for services that became “understandable” and were acceptable
by many. Then the charges escalated and grew. Who is to say that hotels may not
start charging for items like shampoo, towels, and sheets? Are pay toilets on
airlines next?
We all need to take a close look at our charges and fees
from time to time. Our price for products and services may be the lowest that
we can charge, but what do we add for the convenience of the customer doing
business with us? Do we charge for shipping or delivery; is there a set-up fee;
how about calls to customer service? This list is not a reason for us to impose
more fees; it is a suggestion that the price of purchase should include something
in addition to our product or service.
Nice post, Jim. I saw that article (about certain Hilton Hotel properties) and I can tell you that the "fee" was anything but trivial! If I recall correctly it was the price of the room for one night!
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