Today: Not “that” kind of bonus…

 > The Situation:
Given the AIG debacle, "bonus" is a bad word right now. But not for everybody.

 > The Idea:
The idea is nudging cautious buyers off the sideline and onto the playing field. In this case, the seller is none other than the uber sophisticated Ritz-Carlton. Here’s their headline in a Globe and Mail newspaper ad: "Buy at the Ritz-Carlton Toronto, and travel the world as our guest for 10 years…" Wow. If you’re a traveler — and you know the level that Ritz-Carlton plays at — you know that this is (or could be) a phenomenal offer worth many tens of thousands of dollars. Quite a bonus huh?

 > The Risk:

Actually not so much. Their downside here is Zero. Nada. None. Why? Well, two key reasons. One. The residences at the Ritz-Carlton Toronto sell for a mere $1.3 million to $8 million plus. So there’s a fair amount of room to bonus. And. Two. No hotelier — not even the venerable Ritz-Carlton — achieves 100% occupancy. There is "always" room at the inn. So. Why not use up that unused capacity to stimulate sales on the residential side? And that’s exactly what they’re doing.

 > The Reward:

If you can find a way to bonus — using unused capacity — you can protect your cash flow — and your profit — and even maintain your self-respect. (On the other hand, when you discount, all three are at risk).

 > The Call to Action:

Everybody wants a deal right now. We all know that. Because everybody includes us. So. Do you discount? Or do you have a bonus you can offer — without giving the store away?

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