Seasons Pass Marketing Idea

[Chewbarka]

A thought for ways to sell more season passes that I have not seen before: Instead of having to cough up a grand, at one time for next years fun, how about a monthly payment plan? Start the program with season pass holders that been buying for multiple years so that you know they will keep paying. Payments begin in April for the next season, so the ski area is never in danger of being shorted. If it was a $99/month program, the passes would be paid for by January. The pass holder gets to spread the pain out with monthly payments, which is really helpful for couples. At $83/month, the payments never end, but makes it easier to budget. And perhaps, for people enrolled in this monthly payment program the price is held from year to year, like an apartment in NYC. Seems like it could be a Win/win situation! Any thoughts, comments? I think this could really attract more season pass holders.

[vonski]

Make it direct withdrawls from the bank account almost like payroll deduction. it would be like a xmas club account that banks used to have or still do!!!

[jwt]

Could, but Bank Of Bush is in the ski business, not banking. Same thing happens with low interest credit cards, some with no interest for 6 months to a year.

I imagine the accounting and carrying forward payables and going after closed accounts and checking to assure the people who did not pay, or stopped paying have no access. Lots of overhead.

We have a higher price than some for some very good reasons - one being the terrain, another the snow amount and quality - lake effects above 3000 feet are something few talk about or realize, and last, crowds or lack of them - lift problems notwithstanding. One gets what one pays for.

Would I like a $599 three mountain pass? Sure, for financial reasons, but I make a choice, Choices are good. Free markets are a wonderful thing.

[Fourwide]

That's a very good idea. It's certainly true that we could have budgeted this internally, put the $$ out the door and achieved the same result, but it's just too easy (at least for us) to find a more immediate use for $3K during the golf season. We've purchased passes for several years running, but will instead purchase the Sugarcard this year.

[Fourwide]

JWT makes a good point--the pass would need to be fully paid by the time of pickup.

[ski_resort_observer]

That's a very good idea. It's certainly true that we could have budgeted this internally, put the $$ out the door and achieved the same result, but it's just too easy (at least for us) to find a more immediate use for $3K during the golf season. We've purchased passes for several years running, but will instead purchase the Sugarcard this year.

The Sugarcard is not availible for purchase anymore, the new product replacing it is the Sugar Direct pass, much better deal IMHO
http://www.sugarbush.com/vermont-skiing-snowboarding/season-passes
if you already have a Sugarcard it will be honored one more season but if you ski/ride at least 11 times buying the SD pass will save you more money.

[Chewbarka]

JWT makes a good point--the pass would need to be fully paid by the time of pickup.

With the scanners in use, if someone stops making their payments, the pass can be rendered invalid.

[Hawk]

Effectively, this is a layaway plan. I think it is a great idea and helps with budgeting for some people. Yes, it would require management by the Accounts Receivable team or perhaps they could outsource this type of periodic billing. It would require rules and an auto-draft commitment. Many companies offer this type of payment service - gym memberships, utility bills, insurance, mortgage. Honestly, all of my banking is done this way with auto payments.

In order to avoid chasing people for $, it would need a 0 tollerance for defaults. If you miss a month, then the $ collect so far would be returned and the purchase would be void. It is worth a market study to see if this purchase would expand the # of season pass customers.

[WWF-VT]

Killingon offered a Summer Payment Plan option by charging your credit card. 33 percent by Apr 30, 33 percent on July 1 and remaining 34 percent on Sept 1.

[summitchallenger]

Killingon offered a Summer Payment Plan option by charging your credit card. 33 percent by Apr 30, 33 percent on July 1 and remaining 34 percent on Sept 1.

K-mart actually double-dipped on the September 1st payment as I understand it! :lol: A few people caught it on KZone and complained to the mountain. They said it was "a software glitch." :roll: I wonder how many people did not notice?

Back to the overall idea: I like it. Burke does it. So do other places. But you run into accounting and the possibility of more said glitches.

[skigal]

What you're suggesting is pretty much the same as putting your pass on your credit card except without the fixed monthly payments for the specific purchase. Sugarbush would miss out on the working capital that early pass sales provide and would ultimately have to charge more for this "opportunity lost" as well as the service of billing and tracking. The additional charge would probably not be much different from the interest you would pay on your credit card. In fact, the price differential between spring and fall pass prices is probably about the same.

[sgottmann]

A thought for ways to sell more season passes that I have not seen before: Instead of having to cough up a grand, at one time for next years fun, how about a monthly payment plan? Start the program with season pass holders that been buying for multiple years so that you know they will keep paying. Payments begin in April for the next season, so the ski area is never in danger of being shorted. If it was a $99/month program, the passes would be paid for by January. The pass holder gets to spread the pain out with monthly payments, which is really helpful for couples. At $83/month, the payments never end, but makes it easier to budget. And perhaps, for people enrolled in this monthly payment program the price is held from year to year, like an apartment in NYC. Seems like it could be a Win/win situation! Any thoughts, comments? I think this could really attract more season pass holders.

Not a bad idea but I agree with others that have pointed out the administrative headache for the Bush -- isn't this what we have credit cards for??? or old school savings for the anticipated expense (does not work for me but just a though). If the bush was to have a program like this, wouldn't you think that it would charge a fee or otherwise raise the price for the pass??? O percent financing is not a good deal for the seller unless the price is inflated enough.

[HowieT2]

A thought for ways to sell more season passes that I have not seen before: Instead of having to cough up a grand, at one time for next years fun, how about a monthly payment plan? Start the program with season pass holders that been buying for multiple years so that you know they will keep paying. Payments begin in April for the next season, so the ski area is never in danger of being shorted. If it was a $99/month program, the passes would be paid for by January. The pass holder gets to spread the pain out with monthly payments, which is really helpful for couples. At $83/month, the payments never end, but makes it easier to budget. And perhaps, for people enrolled in this monthly payment program the price is held from year to year, like an apartment in NYC. Seems like it could be a Win/win situation! Any thoughts, comments? I think this could really attract more season pass holders.

Not a bad idea but I agree with others that have pointed out the administrative headache for the Bush -- isn't this what we have credit cards for??? or old school savings for the anticipated expense (does not work for me but just a though). If the bush was to have a program like this, wouldn't you think that it would charge a fee or otherwise raise the price for the pass??? O percent financing is not a good deal for the seller unless the price is inflated enough.

The whole point of the early bird discount is so they can have some revenue early. So a payment plan would only work for SB at the non discounted price which I don't think is what you are looking for.

[WWF-VT]

I prefer the early bird discount and figuring out my own cash flow for multiple season passes and seasonal programs for my family rather than Sugarbush having to build in additional administrative costs

[Hawk]

A couple of thoughts. If it were a layaway program then it would not be like a credit card because there is no interest. Also this would not hurt early sales. People that would take advantage of this probably would not have the funds to buy the early pass. That is why they need the layaway. I would think that maybe 100 families would take advantage. Maybe more but that is not overwhelming for back of house operations. Sugarbush has an accounting staff that already does the recievables.

In the end it will mean more options which translates to more sales.

[vonski]

A couple of thoughts. If it were a layaway program then it would not be like a credit card because there is no interest. Also this would not hurt early sales. People that would take advantage of this probably would not have the funds to buy the early pass. That is why they need the layaway. I would think that maybe 100 families would take advantage. Maybe more but that is not overwhelming for back of house operations. Sugarbush has an accounting staff that already does the recievables.

In the end it will mean more options which translates to more sales.

I agree and probably would be willing to split the difference in price between early season sale and the up tick in price for the September pricing to be able to lay it away and not pay the bank interest on a credit card. I would rather give that interest to the mountain.