Hello Central Valley

[Karen3801]

New to hosting. I have been hosting for about three months now. How do you gauge your Airbnb pricing?  i see several people charging a high price! Is that doable? 

[Patricia2526 · Accepted solution]

Hello @Karen3801 

When you are building your listing pay careful consideration to your pricing structure. Is your location super seasonal? Is it fairly steady? Is there more than one season? What is your actual competitions prices? Try to compare apples to apples as much as possible (this can be a bit difficult since no two places are exactly alike and try to keep hubris out of your estimation of how good your listing is as compared to the competition).

Pricing is a fine razor edge to walk. If you are priced too high you will most likely miss out on booking and if you are priced too low you will probably be heavily booked but missing out on income.

I suggest to set competitive pricing (fair pricing) by researching similar listing in your area and set a competitive price for your space Considering offering discounts for longer stays or seasonal promotion to attract more guests.
You can compare your price to the average prices of similar listings booked nearby.

Here’s how to compare prices:

* Select any date on your calendar, or you can choose a date range of up to 31 nights.
* Tap or click on your nightly price. A button directly below the price shows a map icon and the words “compare your price.”
* Tap or click that button to pull up a map of average prices for listings similar to yours. On the map, you can opt to show the average prices of booked or unbooked listings in your area.

The prices shown on the map reflect each listing’s average booked or unbooked price for the dates selected. The factors that determine which listings are similar include location, size, features, amenities, ratings, reviews, and the other listings guests browse while considering yours.

Hope this helps.

Best Regards

[Karen3801]

Thank you! I have been looking in my area that’s how I found out I was charging too low. 

[Robin4]

@Karen3801 

Karen, when you decide to short term rent the biggest trap you can fall into is trying to compete with other listings in your area. You firstly need to establish what it actually costs you to offer your property to guests. You need to set up a proper spreadsheet and include every item that has an effect on what you offer.

Although a few years old now, this is the spreadsheet I use to establish what it costs me to provide my property and still make a bit of profit........

It's not a fortune but it doesn't need to be. Being retired my commitments are minimal and the extra $500 a week our Airbnb brings in helps us to a nice comfortable lifestyle.

If you don't use something like this you have no idea if you are making money or losing it!

Another thing to remember, the cheapest price tends to attract the poorest quality guests. Being cheap can lead to a lot of unwanted problems.

Once you have established the profit margin you require you can then start using 'Smart Pricing' or other Airbnb pricing tips knowing where to set your base price without sending yourself broke. 

Cheers.........Rob 

[Karen3801]

This is helpful!!! Thank you!