It's the most challenging part of the business, managing people you know, who have expectations of getting a discount or sometimes even free of whatever you are selling. I have always valued them and I can go to any length to do things for them, but at the same time, they should also realize that I am running a business for a living and it's just not for fun.
It's been 1 years plus to my Airbnb business. In this one year time, I have been promoting my place on many forums as I can. Business is doing decent, I can recover the cost of maintenance, which is very high, and to be very honest profit margin is very low, which again in every few months gets almost wiped off with some upgradation work. So while people think I am making money, in reality, after all the bills there is barely anything left for me to claim as profit. Some times I even think, is it even worth doing it? But then yes, I think it's worth doing it, because if I do not, then all the maintenance and bills will be additional expense for me from my own pocket, which would become additional cost for me in my expenses. So renting it out, helps me maintain my place in a better state.
Now the point is when my friends reach out to me to book the villa, it does put me in a awkward position, because their first expectation is to get the place free, and if not free then to get a good amount of discount. Once in a month I can give one free or discounted price stay, but regularly I cannot. Also giving away a weekend in these offers is a big loss to me because these are the days when I can earn better from normal clients and recover my cost. As it is weekdays are dull and not many bookings come through. Like in this month of September, I have only 4 bookings, which may not even recover my cost. And it's just not about the money, friends are the ones who fail to obey the rules as well, and it becomes difficult for me to explain to them, that it is not a use and throw away place, it's an ongoing business. Some times they do damage and walk away as if nothing has happened.
I some times fail to understand, that when people book a hotel or a resort, they would follow all the rules, they would be careful about the usage, they will adhere to the check-in and check-out timing, so why do they not follow the same even if it is a friend's business. Little freebies I am always happy to give, but I cannot stretch out completely. Same people will go and buy branded things at the full price, where they will not bargain a bit and pay whatever the price tag is there. But with me, they have all the expectations of free stay and discounts.
When I had started this business, some people told me, that you will be most exploited by your friends and I had laughed out. Now, I feel that was so right. I have formed some new strategies to tackle this problem. If any of my friends reach out to me for a booking on a day which is a lucrative earning day for me, I simply tell them it's booked, so that closes the matter and I do not have to do all that discount and free bargaining deals with them.
Again, here, my inner circle, they never do that. They are always willing to promote my place and also if they want to visit, they will book it on a full price. So for other's I do not feel bad in anyway now. I guess over a period of time business teaches you how to deal with people.
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