A family had rented out their family cabin near a mountain lake for almost 40 years. When the cabin was new, it was easy to increase the rental cost from year to year, get top rental rates, and fill the calendar with rentals. But as the home aged, the family had fewer customers, even fewer repeat customers, and many summer days went by with no rentals at all. They contacted GPS Marketers for help in determining what they should do to increase rentals. GPS compared rental properties in the area, focusing on similarly aged homes, and determined that the cost the family was charging was too high. When the family lowered the rental rate, they found that they once again were booked solid and had repeat customers. Why did the strategy of lowering costs increase the rental demand? Lowering rents to increase the demand was a good idea because it used cost-plus pricing to leverage the value of the cabin. Lowering the rental cost was a good strategy because it allowed the family to be more selective about who could rent the cabin. Consumers need to feel they are paying a fair price for the value; they won't be back