Discount strategy

Setting a price point for the activity naturally segues into considering discounts. We are “expected” to have some – kids, pensioners, and companion card holders, no worries. I’d like to have others, including;

• Locals discount on week days. This will help utilise the asset more on slower days (less visitors to the area).
• Emergency services and front line healthcare workers. These guys work hard to keep all of us safe, so it seems right to offer a discount to them. I am a volunteer for the Victorian State Emergency Service, so this is a sensitive one for me.
• Returning customers. These people are likely to bring new friends (who in turn may bring their own friends in the future) so having an incentive for them makes sense.
• Early-bird booking. More than a week in advance – helps us plan and book our staff.

These discounts vary from 10% to 30% off the list price, but only one discount can be claimed (a returning customer who lives locally, is a volunteer member of their CFA and is a nurse does not get all of the discounts – only the highest one applies).

The most significant discount is when customers buy multiple ride tokens. I have developed a simple way for this discount to work, based on how many rides I estimate most people will want to enjoy (3 to 5 per visit). Customers get a 1% discount for each ride token they buy, up to a total of 50% / 50 ride tokens. For example;

A family with two kids might want three rides each – 12 tokens. Maybe the teenage son wants a few extra rides, bring the total up to 15 ride tokens

This family would get a 15% discount.

This encourages people to buy more and get more of a discount, and really rewards family or friend groups buying tokens together. Hopefully, they all buy a snack and a drink and maybe some merch as well! 😜

Calculating the result

All these data points are incorporated into the spreadsheet. By adjusting a few variables like the base per-ride token price, and if the customer volume will be optimistic / pessimistic / neutral, we can see what the break-even point is.

Currently, the project seems viable, but there are a lot of assumptions in there and a plan seldom survives contact with the enemy.

Exciting times ahead!