Add-on Fees. Good or Bad?
Using competitors’ fees to your benefit.
This Is Visceral
I prefer hotels where WiFi and breakfast are free. All things being equal, I'll say "thank you" in advance by booking a room.
Takeaways to Consider
- Think of airfare as the starting point. For example, a train ticket or a bus fare guarantees you a seat from Point A to Point B. That's what you contract for. Everything else is extra—a drink or sandwich in the café car, a red cap to help you with your bags or a sleeper.
- Why should airlines feed me for free? Trains and buses don't.
- Free shipping is a powerful inducement to buy. Here are 20 Internet retailers offering to ship free.
- Marketers can win customers—and customer loyalty—by pointing out fees they do not charge.
- Marketers who charge sneaky hidden fees risk being found out and hurt by their competitors.
- Customers can be won over with freebies—long known in direct marketing as premiums.
- If one premium tests well, try two. And three.
- "Premiums and bonuses drive sales. Too often the premium is an afterthought. I think it's at least as important as the core product." —Dan Kennedy