If Egg Harbor or Door County decided to raise the slip prices 80% in the next two years you would still go there? How many other people would?
There is a point at which price exceeds perceived value and volume falls. Or, through inadequate management of pricing, quality falls and volume declines.
Egg Harbor removed an old dumpy marina, built a new one of double size that is a wonderful marina, and raised slip fees. The result? 66 full slips at a higher rate (double the occupancy, higher rate) more than double the income to run the facility, and a beautiful destination marina that will bring visitors to our village. The perceived value of boating to Egg Harbor has been increased and can support the higher price. We are using the increased revenue to rebuild the park by the marina (thus enhancing value) and are using room tax revenue to have 9 free concerts of national touring acts on Sunday night at a new outdoor venue within walking distance to your boat. This is in addition to all that we have to offer other than boating.
Perceived value earns a higher price, and through higher slip fees the user pays the cost for the better time on vacation.
Would we raise slip fees 80%? Of course not, and the suggestion of pricing at double the market is ludicrous! But, an Audi commands more than a Ford, Haggen Dazs commands more than Deans. We changed our market segment and our marina is full. And yes, we lost some long term renters who didn't want to pay the new price.
Price is not absolute, it is inextricably tied to value,and FOR ME at this time the UP delivers the highest value sledding experience within a 6 hour drive. At $45 it is not a matter of price, it is a matter of value.
As long as the fee supports the value I'm good.
This is fun, you guys are making me work!
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