Selling on Price

During all of my marketing classes, I was taught over and over NOT to sell on price.  Doing so puts a company at risk for low margins, a cheapened image and many other disadvantages.  Below is a copy of a so-called “proposal” from hotel for a $100,000 group.

__________________________________________________________

Thank you for your interest in XYZ to host your event. We are pleased to offer the following;
 
- Dates: 5/7/08 – 5/9/08
- Peak Rooms: 75
- Run of house rate: $ 239
- Tower: $ 309
- Food and beverage minimum of: $ 15,000                       
- Guest room rates as shown above are net, single or double occupancy, per room, per night
- Nine percent (9%) room tax, not included in the above rate
- Proposed meeting rooms: XYZ/ABC; TUV

RATES AND AVAILABILITY ARE SUBJECT TO CHANGE WITHOUT NOTICE AND ARE NOT CONFIRMED UNTIL GROUP IS CONTRACTED.
 
Upon advising us that you are ready to proceed, we will return a contract to you with further details regarding a deposit, payment, and reservation deadlines.  However, please note that at this time we are not holding any space for your group.

 
We appreciate your interest and look forward to welcoming you and your group to XXX.  If I can be of further assistance to you please contact me at (555) 555-1212.

_________________________________________________________

I received many of these from different properties with nearly all of them being the same.  A few mentioned their AAA /Mobil ratings which only account for a one-person, one-day perspective.  A couple were done with a fancy online format but out of 15 I received not a single one, not one mentioned anything regarding their meetings performance and why a meeting at their property would be a superior experience to a different property.

This lack of performance information for planners hurts both the planners trying to make an intelligent, supportable decision as well as the properties trying to win the business.  Perhaps, a $100,000 program isn’t worth much anymore but I would think it would still mean something more than what I received above.

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