By Dave Millhouser

It was a salesmans dream.

The two coach company owners wanted the new bus too much, so every time one partner raised an objection, the salesman raised the price.

Finally, the other owner realized what was happening, and told his colleague to shut up and sign the order, while they could still afford the coach.

That kind of thing can happen when a product is perceived as having real value.

Sadly, for our industry, about the only time we have that sort of edge is in the spring and fall when theres a shortage of equipment . . . and we can price to meet the demand.

In recent weeks it has been instructive to watch the media (and a few of us) go after "low-cost carriers."

These miscreants are the source of most of our problems, having more than their share of highly visible accidents, and stranding innocents on the roadside.

The problem is that, for the time being, were all perceived as "low-cost carriers."

Most of our customers use us because we are inexpensive, and convenient, not because were their first choice. Theyd rather be in a private jet, a limo or their own car.

Virtually every operator I encountered in 40 years in the industry talked about competitors as "discounters." But lets be honest. Every one of us -- who has ever cut prices to sell a trip -- is a "low-cost carrier."

Theres no shame in providing value -- look at Wal-Mart. It offers value and makes money. As do some (but certainly not all) "low-cost carriers."

Years ago a coach company went belly up in New England. I was in the office of a nearby competitor, and asked if the other companys failure would offer him the opportunity to bump up his rates.

His response was: "Not as much as youd think. Raise prices significantly and folks just wont go because people dont perceive a bus ride as being worth much."

The point is, we provide a valuable service at value pricing. Some operators offer more amenities than others but we are Wal-Mart, Target and Sears, NOT Macys.

One way retailers offer bargains is by driving their costs down. As an industry, were weak at knowing our costs, and have relatively little power to reduce them.

The only other avenue to profit is to raise the public perception of our worth. Even commodities command high prices when they are valued.

Im not sure what it would take to convince folks we are a real bargain. Airlines have an abysmal record of reliability and customer service, but they have managed to pull off a real coup when it comes to raising revenue.

Virtually every time they try to raise ticket prices, they get beaten back, so theyve identified areas where they offer real (or imagined) extra value, and charge for it. Theyve convinced travelers to pay extra for early boarding, seat position, leg room, snacks, headsets, and luggage, and hell -- no one even likes airlines.

We, conversely, while perceived as a lesser mode of transportation, have invested heavily in expensive entertainment systems, Wi-Fi, power outlets, galleys and a myriad of other amenities, and then give them away. Even worse, weve allowed customers to assume those goodies are part of the bus . . . standard equipment.

As usual, Im long on questions and short on answers. While obnoxious, the airlines strategy of charging for stuff highlights its value. Perhaps we should drop our prices and then begin charging for the added value items we provide.

Some carriers do offer several tiers of service, charging less for older equipment. Thats a start but often old coaches offer similar amenities (which cost to operate and maintain).

Even if an attempt at "cafeteria"-style pricing fails, it might offer customers some insight into all the extras that coach travel provides, and that those amenities are expensive to install and operate.

Theres a difference between "low cost" and "cheap." Were never going to be Macys, but we offer terrific value at reasonable cost. Our drivers are sociable, and coaches are able to stop in more convenient places than the average airliner.

We are safe. Southwest Airlines has made the point you can operate inexpensively, without being dangerous.

There is a hint of schizophrenia in this column. On the one hand, were a value; on the other, we need to get revenue up

Those two can only come together when weve been successful at convincing the public of our real worth. Just calling them "motorcoaches" rather than buses... hasnt cut it. We need to work at it.

Sometime when youre feeling pessimistic about the coach business, go to this link. If you think WE have problems . . .

http://www.foxnews.com/travel/2012/10/03/if-given-chance-what-would-say-to-airline-ceo/

Dave Millhouser is a bus industry marketing consultant and freelance writer. Contact him via email at Davemillhouser@gmail.com.