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Increasing Your Profit with WaveLogic [Complete Guide with Use Case Scenarios]

06/16/2021

As a tour or rental operator you’re always looking for an advantage to squeeze out more value from your business. That may mean adding paid option items like floating mats and coolers or broadening your schedule availability to get more $$ from a single activity or rental. We’ve seen many clever ideas over the years and we stand behind most of them, but we believe one of the core ways to increase profits has been largely overlooked: a simple price increase. 

 You’ve got your overhead dialed in and your pricing set to facilitate a healthy profit but it’s possible that you’re leaving a chunk of change on the table each year. Pricing can be a touchy subject for many operators but they all can agree that when they are fully sold out and have no more inventory they could have charged more that tour or rental. In many cases, it’s a foregone thought as monitoring sales and trying to manually increase prices was never worth the labor it entailed. Which is why we developed WaveLogic.

WaveLogic can automatically increase prices based on a range of variables that are set by the operator. As long as a business has sufficient inventory and an idea of their demand curve they can set up price increases that won’t adversely affect their customers and will generate an additional bottom line.

Are you always sold out on a specific date? Are there times where your tours/rentals are booked full a month in advance? In those cases, it’s clear that the demand is much stronger than the supply and you have some room to earn some extra profit. During these times it’s also safe to assume that your customers are going to be willing to pay extra without being upset about it. To be clear, we’re not saying double the price on everything and walk away, we’re advocating for a smart and thoughtful % based increase that will allow you as an operator to smooth the demand curve and earn extra profit by doing it. For example: if an operator has 10 jet skis in their fleet and they know on weekends in July they are almost always booked full, they can set up a WaveRange to increase the price on the last 4 of the 10 skis available by 30%. Once skis 1-6 are booked for a specific day, ski 7, 8, 9, and 10 would be booked at the base price + 30%. For ease of numbers let’s say every jet ski was being booked for a half-day at $200. Ski 1-6 would be booked at the base rate, $200, and generate $1200 in revenue, ski 7-10 would be booked at $260 (200*1.3=260) and generate $1,040 in revenue for a total of $2,240 of revenue for that day. Had the operator not used WaveLogic they would have booked the same and generated  $2,000 in revenue, thus leaving $240 (or 12%) of the additional bottom line on the table.

WaveLogic can be set up in multiple tiers and only affects the specific activity on the booking day during the specific date range that it is set up for. WaveLogic can be used in a multitude of different ways, we’re still experimenting and learning the best applications ourselves and we’re looking forward to sharing full case studies moving forward. In the meantime, take a look at the video below to see how to create dynamic pricing using WaveRez:

To learn more about how WaveLogic and WaveRez can benefit your watersport business, please reach out to Luke Schulze via email at [email protected], phone at 413-458-1721 or by scheduling a free demo.

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