It doesn't always have to be about making money. Sometimes a loss-leading element to your offer can be the thing that builds loyalty.
We stayed at a lovely campsite in North Norfolk recently. It had everything you could want from a site, including a lovely walk that revealed a beautiful sandy beach and rock pools as the tide went out.
We discovered the site, on recommendation, on a previous visit. We left our car there for hours to enjoy the sunshine, the waves and to hunt for crabs. We also used the lovely little beach-side cafe.
And best of all - it was free! The campsite owners allowed people free access to the car park, the play area and - most importantly - their toilets.
It's always a dilemma for places who need to make money. Do you take advantage of every opportunity to raise income, or do you accept that a loss-leader actually delivers cash in a different way?
We had a loss leader on my National Trust site - a beautiful working mill. It made us little money directly but when we added a great team leader and wonderful volunteers suddenly the experience they created led to additional flour sales and no doubt, return visits. Hard to measure of course, but judging on the comment cards we knew visitors loved it.
But back to the car park. Without free access to that place, providing a perfect meeting point and the start of a great day out, we'd have never returned to camp or spend money in the shop. Instead we've done that, recommended it to our friends and will inevitably book it again for next year's camping itinerary.
I wonder how much money the camp site actually made from us as a result of not charging for that car park?
Do you worry about the loss-leading elements of your business? Let's explore how I can help turn these into an opportunity.
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