Do your guests ask to negotiate the price?

[Quincy]

Negotiations.

A word that we have probably all encountered many times in our lives, and perhaps an action that we may have practised ourselves at one point. Negotiations when buying a car, negotiations when buying a property, the list goes on. 

Treading very carefully here, I am aware that in some regions negotiating the price is not common practice. However, since everyone has a different style of Hosting, how do you view guests who try to negotiate the price with you? Have you perhaps ever negotiated your asking price, and what advice would you give to other Hosts?

I look forward to reading your answers (please go easy on me 🙂). 

Thank you,

Quincy

[Kelly149]

@Pat271 "high demand area" that's a big part of it... I've never been less booked than I wanted to be, so why would I take less, when history shows that someone else will be coming along to fill those dates at the price I'd set? I think that's the part that people don't account for: this isn't a quantity item, there isn't a replication machine waiting to make more nights that selling one cheaply won't be felt. Giving person A a discount is really me robbing myself of the opportunity to be booked by person B who will be willing to pay full price

[Pat271]

@Kelly149 Exactly. Just like everything else in life, there is a market for everything from apartments to toilet paper. When demand is high, there are fewer concessions, prices go up, etc. When demand is low, people negotiate more and there are more concessions and discounts offered.

I have done my share of negotiating over the years. I remember once I had a $90 budget to buy used garden furniture. I found a set that looked like it might work in the want ads, so I made an appointment to see it. It was the first day of the ad, and the set was $125. I asked if she would take $90, and she said no. I said no problem, thanked her for her time, left her my number, and asked her to call me if the set didn’t sell and she would like to accept my offer. She called a week later and we completed the transaction.

I don’t feel I was clueless or self-absorbed; on the contrary. The garden set sold for what the market would bear.

Also, I learned something from my mother years ago about unadvertised discounts. Apparently, senior discounts are available at many establishments, but customers are never asked because it is considered somewhat rude to imply someone looks like a senior. 🙂 So my mother always asked, and half the time she got a discount. This is the same with military discounts, AAA discounts, and, especially lately, healthcare worker discounts.

I say I never give discounts, but there was one exception. In the depths of the pandemic in 2020, we had nurses arrive from other states to help out in the intensive care unit. I hosted 2 of these nurses, and I gave them a long-term discount when they asked. They stayed with me for 6 weeks, and I was so extremely grateful they were there to help.

I think the problem with some guests who ask for discounts is that they don’t really know what the market will bear in every given locale during every season, although there are those wily guests who purposefully look for something higher-level and more expensive than what they want to pay, just to try to wheel and deal to get more for less. I think these are the clueless and self-absorbed guests that Sarah is referring to. (@Sarah977, correct me if I’m wrong). With those guests, I do the same thing @Laura2592 does, which is to politely steer them towards more affordable listings in the area (although I’m pretty sure they’re already quite aware of what they’re doing). 

[Kelly149]

@Pat271 I've often done the same with used items both buying and selling.  But no one tends to slash prices the first few minutes a listing is live. After some time, I think that is an appropriate back/forth: if you can get that for it great, if you get to a point where you'd be willing to take xyz, please lmk. And I feel the same about the ABB, and have said as much to guests before: sure, our rates are lower on Tuesday/Wednesday, or January is also more affordable. But, no, if what you really mean, is can I book a high season weekend, 2 months ahead of time for less money, then that's going to be a no.

@Laura2592 it's often a good markteting strategy to have some cast-offs listed at a discount for those who just are allergic to paying full-price or to re-direct folks to more what their budget can get them. And yeah, reasonable people know that their budget has zero bearing on what something is worth.

and @Ann72 that's it exactly! you got something, she got something, that sounds perfect!!

[Huma0]

---

@Kelly149 wrote:

And yeah, reasonable people know that their budget has zero bearing on what something is worth.

---

Exactly. I recently had a guest who asked a few times for an extra discount (on top of the long term one I already have in place) and each time was told no. She went ahead and booked at the advertised price anyway but gave me a 3* overall rating. When asked why, she said because the listing was over her original budget.

A reasonable person would rate value (let alone the overall experience) based on whether the listing was priced fairly for what it offered and where it was located, not on what they felt they could afford. If there was a comparable listing in a comparable location available for a much lower price, surely they would have booked that instead? It should be glaringly obvious that, if there is nothing comparable on offer for less, then the listing is fairly priced, but unfortunately, common sense is not that common. 

[Sarah977]

@Pat271  Yes, those are the kind of guests I'm talking about. The ones whose request for a discount isn't based upon anything other than how much they want to pay or have the attitude that you should always try to get a lower price.

Most hosts aren't gouging anyone to start with. They've figured out their expenses, their time, and what sort of profit they need to see to make it worthwhile to host. Sure, they might hike the price over Christmas and Easter break, when there's a major event in  the area, etc, but they might also drop the price quite a bit during low season. 

We're in the business of attracting guests, so being overpriced would be counterproductive. That's what those discount seekers don't bother to think about.

I see offering lower than an asking price on some item you see on Craigslist as something quite different than asking for a discount on an accommodation, or trying to chisel a tradesperson down on their work. I don't negotiate with clients on the upholstery work I do and if someone tries that on, I'm not interested in working for them.

When someone is selling something second hand, it isn't anything they are ongoingly putting work into, ongoingly cleaning, stocking, improving, etc. Nor are they providing a service. You aren't going to be phoning them 5 times after you buy and take the item, asking questions or complaining. No one is concerned about reviews.

They have an item they bought new or came by somehow in the past, that they don't need or want anymore, and it's in good enough shape to be worth something to someone. So they come up with a price, but if no one's interested at that price, getting something reasonable for it is better than hauling it down to their basement to collect dust or donating it to the Goodwill store. 

[Erich15]

I think there is an huge difference between nurses who need an roof over the head and people doing leisure travels...

Airbnb is supposed to be private room/flats rented out, hosts usual do set prices anyways pretty low compared to hotels and similar, it is someway rude to ask for even less imho.

[Quincy]

Hi @Pat271, this is very insightful! My property at the time was in a high-demand area as well, so I wasn't open for negotiations either.

[Sarah977]

@Quincy  I consider a guest asking for a discount to be a sign of disrespect. It's like they are saying that sight unseen, it isn't worth what a host is charging. Nor do they have any idea what the host's expenses for the place are, so their desire for a discount takes nothing into account but themselves.

It also denotes a self-absorbed, entitled attitude which is likely to be carried over to the guest's other behavior. Why would they think their financial situation is of any interest to a host, who is a total stranger? Why don't they look for places within their budget instead of finding something they like and then wanting the price dropped for them?

Do they try to negotiate the menu prices at a restaurant? The cost of their groceries at the check-out stand? Their phone or electric bill? Why do they think it's okay to do that to a host? 

It's quite a different thing than negotiating a property purchase or buying a car. Those things are traditionally priced higher than what the seller assumes they will get, because negotiating in those realms is standard practice.

[Kelly149]

@Sarah977 around here, right now, cars and houses are quickly going for over asking... 

[Sarah977]

@Kelly149  Yes, it seems to be a seller's real estate market in a lot of places these days. I sold my house in Canada back in 2010, when it was a buyer's market, but I couldn't afford to hang onto to it anymore at the time. I could easy get twice that now. 

[Quincy]

Hi @Sarah977, thank you for sharing your perspective on this! When was the last time someone sent you such a request? How did you reply? I'm hoping that this will help new hosts viewing this topic.  

[Sarah977]

@Quincy  I have gotten very few discount requests- my place is budget-priced and I don't seem to attract guests who think it's okay to try to chisel a host down.

Reply would be "My listing is very fairly priced. I don't offer discounts."

[Elaine701]

Yes, occasionally. They never get through the gauntlet though. 

[Ann72]

@Quincy  I negotiate for a living, but agree with @Kelly149 and others that it should be mutually agreed upon.  Many are clearly being urged by a partner to ask for a discount.  They usually do this quite late in the discussion and when I turn them down, they always go ahead with the booking.

The ones I don't like are those who exclaim how beautiful the place is, then say they would really like to stay but can't afford it.  I believe I'm supposed to be so grateful for their good taste that I am meant to let them stay at whatever price they can afford.  When I can't afford to stay at the Ritz in Paris, I don't ring up the manager and tell him I can't afford it and expect to be let in at whatever price I can pay.  For these people, I just say, "I'm so pleased you like the place and hope you soon find something within your budget."

[Kelly149]

@Ann72 exactly, a true negotiation is a back and forth between 2 folks who have sympathetic interests and they each have something to offer. In the old days (@laura2592) in a car deal, the back and forth was: I'll buy this from you instead of the other guy or I'll buy it today instead of making weekly trips over here to kick tires every other week for the next two months AND ok, if you're signing up right this minute then yes, I'll discount this part and charge you extra for this other part.

I really wouldn't mind a ABB negotiation if it was 'hey, I'll give you a hefty security deposit, I'll bring my own snacks, and btw, we're leaving at 4pm on the last day, but I know that's after checkout so I've entered our dates to include the next day, if that merits any consideration, we'd be grateful, but we're looking forward to the trip either way."

The folks who for no reason whatsoever just think they should pay less can go right on their merry way to some other place IMO. And if you've been so dense as to tell me that you really can't afford to travel, then I for sure don't want to be included in that trip!