Could You Charge 70% More With a Better Business Name? Is your small business stuck charging low prices for your products or services? The problem might not be what you're selling. Here's how one business raised prices by changing its name.

By Carol Tice

entrepreneur daily

Opinions expressed by Entrepreneur contributors are their own.

Could You Charge 70 More With a Better Business Name

Is your small business stuck charging low prices for its products or services? The problem might not be what you're selling. Turning things around could be as simple as taking on a new business name -- one that implies higher quality.

That's the takeaway lesson from a recent episode of Hotel Impossible, the new Travel Channel show in which expert hotelier Anthony Melchiorri visits floundering small hotels and helps their owners turn them around.

On a recent episode Melchiorri and his team visited a small hotel in Miami that has $1 million in debt. Melchiorri first pointed out that the place had a problem with branding. Some signs, including the big neon sign on the top of the building, said "Motel New Yorker." Another on the front window, though, said, "The New Yorker - Boutique Hotel."

Related: 7 Tips for Naming Your Business

Consumers have a very different impression of the word "motel" than they do of "hotel," Melchiorri explained. One is considered lower quality, while the other is perceived as more luxurious. Fixing the inconsistency and positioning the place as a hotel could enable the owners, Shirley and Walter Figueroa, to charge more than the current $79 a night rate -- up to 70 percent more.

To further improve the branding and make the space more in line with a hotel, Melchiorri also suggested the owners improve the property. He targeted a spacious interior courtyard where guests eat breakfast -- a unique feature that no other motels in the neighborhood have.

Melchiorri's design team transformed the courtyard into a sunny space with yellow walls and white lanterns. It can be used day and night, and helps communicate the hotel's luxury position.

Virtually overnight, the hotel could command much higher rates for those very same rooms. The repositioning also works well because all the other places to stay in the neighborhood are motels, so now The New Yorker stands out.

With the owners' debt load, it remains to be seen if this repositioning happened in time to save the business. But if they have to sell, the Figueroas have a more valuable property with the new name and look.

How have you repositioned your business to charge more? Leave a comment and share your strategy.

Related: Could You Fix Your Failing Business With Just $10,000?

Carol Tice

Owner of Make a Living Writing

Longtime Seattle business writer Carol Tice has written for Entrepreneur, Forbes, Delta Sky and many more. She writes the award-winning Make a Living Writing blog. Her new ebook for Oberlo is Crowdfunding for Entrepreneurs.

Want to be an Entrepreneur Leadership Network contributor? Apply now to join.

Editor's Pick

Related Topics

Business News

He 'Accidentally Discovered' a Semi-Passive Side Hustle in College — Now He's on Track to Make More Than $500,000 This Year

When a lack of funding put a stop to Zach Downey's pizza vending machines, he stumbled upon another lucrative idea.

Business News

Here's How Much Amazon's Typical Customer Makes, Plus How Much They Spend on the Platform Per Year

A retail snapshot from data company Numerator paints a picture of who shops at Amazon and where they usually spend their money.

Business News

Apple Faces Class Action Lawsuit Over iCloud's Alleged 'Enormous Structural Advantage'

The lawsuit asserts that cloud storage on iPhones would be "better, safer, cheaper, and more prevalent" without Apple's policies.

Business News

The Infamous Diner Booth from 'The Sopranos' Finale Is Up for Auction — And Some Fans Are Livid: 'Let Future Generations Enjoy'

The booth is still in the restaurant and ice cream shop in New Jersey where the finale was filmed.

Business News

Jason Kelce Officially Retires from the NFL After 13 Seasons With the Philadelphia Eagles

Kelce officially announced his retirement from the league after 13 seasons in Philadelphia on Monday afternoon.