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Flexible Payment Plans – Why Offering Payment Options Can Really Pay Off!

Park Operations Management

Today more and more people are living paycheck to paycheck…which is what makes flexible payment plans so attractive. Our guests want to have access to our premium products and to experience our high-end encounters; however, the higher price point can prevent many guests from choosing these options when full payment is due up front. The use of flexible payment plans can open these offerings up to an entirely new market!

Making payments over time isn’t the answer for every product…the products offered with a flexible payment plan must be higher-end products with a price that reflects the product’s values and that creates a desire for the guest to purchase this product. Here are a few examples of products that can drive higher sales when they are offered with a flexible payment plan:

  • Product: Annual Pass
  • Type: Per Person, 12 months Admission
  • Retail: $229
  • Single Day Admission Price: $99
    • Down Payment = $99
    • 11 Payments of $11.81
  • Product: Family Membership
  • Type: 2 Named Adults, 2 Children
  • Retail: $199
  • General Admission/Single Day Price: $20 Adult, $17 Children, Family of 4 = $74
    • Down Payment = $75
    • 11 Payments of $11.27

 

  • Product: VIP Tour
  • Type: Per Person, Special Experience
  • Retail: $499
  • Terms: 3 payments of $166.67
    • Able to book/confirm after second payment
    • Final payment due prior to Tour

Do you see what we have done? In the first two examples we have simply front-loaded the first day’s admission and made it the down-payment. Doing this effectively disarms guest objections to the cost…the price for the Annual Pass or Membership today is the same amount that was already budgeted for this month…and the next payment isn’t due until next month.

In the third example the flexible payment occurs in the form of an Instalment Plan consisting of three payments over a period of time. Nothing complicated.

Having flexibility to allow options in the way we are compensated for our products and extending that flexibility to our guests with different payment options can open the door to an entirely new stream of revenue.

Have a great week!