Marketing Profs

Nickel and Dime on the Not-So-Sly

In a post at his Living Light Bulbs blog, Ryan Karpeles talks about the wrong way to make a buck. And he offers a prime example: Dollar Rent a Car, which recently introduced a $2 "topping off" charge to any vehicle returned with a full tank of gas. "Not only is this obnoxious," Karpeles complains, "but it's also unfair to the customer ... you either pay $2, or you get stuck with the bloated 'local refueling charges' (which are always higher than the market cost of gasoline)."

If the company needs to generate an extra two bucks from each transaction, Karpeles suggests that rolling the surcharge into a rental fee—where it's likely to go unnoticed—would secure the revenue without alienating customers.

It's a principle worth considering if you find yourself in a similar situation. For instance, would you feel ripped off if your $240 hotel room came with complimentary Internet access? Of course not. But you might resent a $15 connection charge when it's added to a $225 daily rate. Likewise, you probably wouldn't give a second thought to a $603 plane ticket that included refreshments; but if you pay $600 for the ticket and they want $3 for a soft drink, you're going to roll your eyes at the price gouging.

The Po!nt: "Before you enact a bunch of new policies to make an extra buck," writes Karpeles, "think about what kind of message you're sending. There's probably a lot better way to accomplish the same thing."

Source: Living Light Bulbs. Click here for the post.

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