New Host - Changed Pricing to Simplified?

[Stanley155]

So went to simplified pricing, I think that is the correct term. Anyway, I increased pricing above suggested level but now I am making less on bookings than before. Also, I don't seem to be able to find my way back to an area where I can edit my pricing. I'm sure it's a navigation error on my part, and also is there an actual customer service number for ABNB?

[Helen3]

1. All the ways of contacting Airbnb are in the Contact Airbnb post towards the top of the Help Forum on this community 

2. if you have increased your pricing to cover the additional guest fee you shouldn't be making less profit 

3. have a look at the Airbnb Help website it has useful Q&As on all things Airbnb including how you set your pricing 

[Karla533]

@Stanley155  At university in economics class I had a text book called "Price Theory and Its Uses." A whole textbook on how to optimally price things!

So I think we need to be patient with ourselves as we get our pricing figured out. People write dissertations on this stuff!

There is a sweet spot on pricing and I had to experiment quite a bit to find what it seems to be for our guest house. I re-evaluate my prices at least once a month. And, I can't be sure my price is ideal, as I have no way to study this question.

What ABB offers as an option is "smart pricing" which is properly called demand pricing. The price fluctuates with page views of properties in the area and hits on your property, and probably other factors.

I find the ABB demand pricing algorithm puts the maximum price way too high, and the minimum price way to low, for my market, based on studying the competition.

When I started out my prices were way to low--still significantly higher than ABB recommended--and was swamped with bookings within days. So I immediately raised my price to close to similar competitors. I still got a lot of action so I raised prices again.

I also note where my listing appears on the ABB website. For almost 4 months my listing was at the top of the first page. Now I'm in the middle of the first page, which is ideal, I think.

As an experiment I once tried listing my price significantly higher and I found myself on the third web page instead of the first. So I backed down on the price until I was back on the first page.

I use ABB "smart" pricing but my maximum price is only USD10 higher than my minimum price. (ABB would have my max be USD200 higher; my area does have festivals and such that cause huge housing demand).

My thinking here is, if I charged USD360 maximum per night as ABB says, I will probably still get bookings, but my guests are going to have expectations that I just cannot meet in terms of rugs/furnishings, square footage, etc. I can only upgrade my space so much. I'd rather have happy guests than grumpy guests!

[Helen744]

@Karla 533 It would be nice if smart pricing worked. It doesnt . It does not know the difference between a one bed or a three bed . Its a blunt tool . People have to do their own pricing based on other similar properties  in their areas and the time of year. A machine cannot do this for an individual because the sum of the ga=me is not people in beds or units sold. H

[Helen744]

@Stanley155 Hi Stanley just go to your dashboard , along the top choose host,then on the panel choose listing ,then pricing and availability. Turn smart pricing to off , then edit each dot point with any discounts ,but you have to also choose a base price below which you will not go . so make that your highest price generally your weekend daily rate. then change and save all of your days prices . it should come up and ask you to choose a price for each day of the week . Be aware that if you have a higher weekend price but someone chooses a weekday price then the price people see will average out over a week at  a lower price per night. So ignore that but if you have a three bed house and have smart pricing on then the price will always be too low because you are in a market with single rooms and two bedders, so dont use it . Just my two cents worth H

[Sarah977]

@Stanley155  "Anyway, I increased pricing above suggested level..."

Are you referring to Airbnb's price tips? If so, you need to completely disregard their price tips- they are absurdly and insultingly low. Airbnb doesn't care if you only make $1 profit a night. Their price tips are only about you dropping your prices so low that you will be constantly booked and they can collect their service fees.

You should look at what other places in your area are charging on average, for similar places and price accordingly, adding on the increase in service fees. 

[Alexandra199]

I think i understand what your issue is. Have you switched to the set up that means the guest does not pay a service fee to Airbnb but instead you pay 15% commission to Airbnb on every booking you take?

If this is the case I did the same and I think it makes everything much simpler and easier. The only thing i would say though is don't be greedy and add more than 15% to the price you want to achieve. Go through your pricing again and make sure you are competitive to other listings nearby. It takes a bit of time to get you head around it but if you dont do this you wont get booked. Overall however, i think the lack of service fee on the bill looks better to the guest when they are comparing properties.

[Stanley155]

Yep, this is exactly what I have done, but my profit should not be less than before, gauged by the instructions. Yes, I bumped it up a little but still below what others are charging for similar location and some with smaller footprint.

I agree with you about the guest not seeing the additional charges and that is why I went forward with this type of payout. But my question is how do you go back in and make adjustments or to check and make sure the setup is what you requested?

[Gavin65]

It's a really bad idea.

When guests are searching, they only see the per night price. If you have raised your price to cover fees, you're screwed against the competition.

And forget contacting AirBnB about this. They don't give a f***

[Gavin65]