In 2020, about 88% of consumers across the United States used a coupon or discount code within the year. Try to remember the last time you wanted to purchase or rent a product or service. More than likely, you did a quick search on your phone or in a new tab in your browser to see if there are any available coupon codes that’ll bring your total down a bit.
Now that COVID-19 restrictions are lifted and the world is resuming, more and more people are planning, hosting, and attending events. Some are finally carrying out their event that was postponed in 2020, and some are hosting events and celebrations for any occasion, simply because they can!
Now more than ever, it’s essential for event rental companies to offer a good deal or a discount to their clients. The point isn’t to lower your existing rental pricing, but rather introduce coupon codes and enticing offers to your target clientele.
A major challenge for event rental companies is the balance between the actual and perceived value of their products. Dynamic pricing helps companies serve both needs while innovating pricing in an increasingly competitive industry. Pricing your inventory is one of the most important things you can do for your business. Your pricing strategy needs to clearly convey to your customers that they are getting their money’s worth, while also accurately reflecting the value of the items you have in stock.
If you feel confident in the services and rental inventory you provide, there’s no need to feel like you have to give a discount for your clients. Simply ask what they think is fair and carry out that agreed-upon amount. They will gladly respect your honest hard work and pay what you charge.
You might not realize it, but your discounted price does matter. If your discounted rate puts you at a lower price point than competitors in the area, it could send up a red flag for clients who are shopping around.
Before Providing Discounts
Discounts are not always something you want to offer in the short term. Giving away discounts could have negative consequences such as lowering your perceived value and encouraging buyers to compare prices. Discounts can also result in lost revenue if guests take advantage of your generous credit policies without returning.
Once you have decided on your price point, make sure that you are not regularly offering discounts to finalize the booking. This indicates that the price may be too high and could cause you to lose money.
How to Manage Discounts and Coupon Codes
If you know the needs of your clients, you will know what kind of discount or opportunity will interest them most. For example, you may want to offer a discount on a product or service that will entice them to use your event rental services for other needs. If your event rental company often caters to engaged couples planning their wedding reception, you may offer a certain percentage off of waitress/waiter services for their cocktail hour. This will entice the couple to book more inventory items from you to utilize at their cocktail hour since you’ll already be sending a server to their event.
Creating Your Own Discounts and Coupon Codes in Your Event Rental Software
Within Rentopian Event Rental Software, you’re able to create coupon codes to allow clients to receive discounts.
You can create an unlimited number of coupons based on a dollar value or percentage, limit by the duration, number of uses, and more. The following is a detailed description of what each field indicates when adding a coupon code:
- Discount value – The numerical value that will be applied as a discount amount.
- Unit – The discount unit. Select whether the unit will be a percentage or fixed dollar amount.
- Coupon code – Choose a code to be used by the end customer. Example: SUMMER15
- Location – If you are a multi-location company, choose which location this promotion/coupon applies to.
- Total quantity available – The number of coupons that can be redeemed until the promotion is over.
- Only 1 per customer/Unlimited usage – Defines if each customer can use the coupon only once, or an unlimited number of times.
- Start date – Start date of the promotion. The coupons created will be valid starting from the date specified here.
- End date – End date of the promotion. After this date, the coupon will become invalid.
- No expiration – Select this to override the start/end date values. Use this option with caution because the coupon will never expire. However, you can always choose to deactivate an existing coupon.
Track and Analyze Discounts and Coupon Codes in Your Event Rental Software
Discounts should be carefully thought out. When you know who your audience is, you can market to them directly and appropriately.
It’s important to understand how your offers are making an impact on your bottom line, and to make sure that discounts won’t hurt you more than they harm you. Remember that coupon codes and discounts are a means to advertise your event rental business and to entice your clients to book more from you, thereby maximizing your profit margins.
Using Rentopian Event Rental Software, you’re able to run reports and analytics pertaining to your coupons and discounts. With the Coupon Usage Report, you’re able to understand the percentage and dollar value that was discounted using your coupon codes, within any date range.
Look for Opportunities
Rentopian Event Rental Software manages and showcases your events calendar so that you know exactly which events are going on in the upcoming week/weekend. If you notice business is a little slow, offer a last-minute booking discount to clients. Additionally, by sharing the discount across all of your social media channels, you increase the chances of more people seeing your offer and possibly booking your inventory last minute.
Have a variety of promotions and special offers throughout the year to fill your empty calendar. Be aware of seasonality and holidays and use them to your advantage by creating promotional codes around these busy days. For example, you may want to offer a 10% discount to all Grads during Graduation Season. Or, you may offer a special booking bonus if a client books your event rental inventory during a slower season to entice them to become repeat clients during that season.
Coupon codes and discounts are a wonderful way to help spread the word about your event rental services and inventory. However, it’s also crucial to be able to track and understand how exactly the discounts you’re providing are impacting your business’ financial health. Rentopian’s user-friendly and intuitive event rental software helps you stay on track and helps your clients get the best of your services, too. Please contact us for a free demo and a 2-week trial account for the all-in-one software that’ll help you manage and grow your event rental business.