February 19, 2024

Handling Revenue Management Objections

Handling Revenue Management Objections

Applying revenue management techniques is bound to create some anxiety for first-time practitioners. It is undoubtedly a little scary; however, I can promise you that the voice inside your head is far worse than any objection you are likely to encounter. Nonetheless, you might get some pushback from your customers, here’s how we suggest handling those objections:

Perceived Unfairness

"I completely understand your concern. We made these changes to reflect demand and ensure that we are staffed appropriately for our busiest periods. Additionally we now offer more competitive rates for off-peak periods when staffing requirements are not as demanding.”

Lack of Predictability:

“I understand how important it is to have predictability, that’s why some of the changes we’ve made allow you to book far ahead of time and see prices and availability on our website.  While price adjustments can happen unexpectedly, we are 100% transparent with pricing and make that available to you 24/7.  Additionally, the price movement can also act as an indicator for you to know when availability is becoming sparse - the higher the price, the likelihood of only a few spots remaining.”

Frustration When Prices Change Between Research and Booking:

“I’m sorry if you’ve been frustrated by changes in price. We dynamically adjust pricing based on demand and current availability. The best way to lock in the lowest price is to book as far as you can in advance.  Our prices react directly from the demand we are experiencing from other bookings - we are not able to predict nor control when other pet owners book. When we hit certain levels of demand, it requires us to increase our staffing which results in incremental price adjustments.”

Loss of Trust:

“We value all of our customers’ loyalty and our aim is to serve as many as we can who share that mutual value for the services we provide. Please know that we carefully considered our guests' needs and the pricing changes were necessary as part of broader improvements we are making to our facility and to the guest experience.”

Any shift in the way you run your business might lead to some resistance, so we recommend starting on the smaller side so the changes aren’t so jarring for your long-term customers.

In my next post, I'll review how the benefits of revenue management can be re-invested into better customer experiences - leading to even more demand.

Learn more about the principles of revenue management by reading the rest of our Guide to Revenue Management.

Chris Tilson