How do you calculate your listing price?

[Lizzie]

 

Hello everyone,

When you first set up your listing, one of the first things you need to think about is how much you price your home per night. From hearing from several hosts here in the CC, I understand that many of you take into account a number of different factors.

Plus, I bet even if you have been hosting for a while, this is something you keep a close eye on.

How do you calculate you prices? Perhaps you consider overheads or consider other listings in your area. What tips would you give a new host?

Thanks,

Lizzie

[Linda108]

When I started, I looked at competition and priced below that for a few months.  I wanted to get reviews and experience and feedback.  Mission accomplished and I crept the price up over time.  Then I adder further value to the listing by having a secondary room available for larger groups or unrelated traveling companions.  Price went up a bit then as well.  I don't think you can keep offering the same value and increase the cost without staying on top of the new competition. 

[Ned-And-Laura0]

I based my price almost exclusively on the rates of comparable places in my area.  I use smart pricing but then go in and adjust when I think its too high or low.  I also go in and lower the price by 20% for one mid week day in the following month because the website shows the lowest set price in your calendar when no date is given by the potential guest.   I will also go in and raise the price 20% when it is a single night gap that is less then a week away.  I do this for two reasons, 1) having a single night stay is a pain when it wedged in between other guests and 2) if they are booking last minute then they probably aren't "shopping" for the best price but rather looking for whatever is available.  Both these strategies seem the norm in the hotel and car rental industries so I figure they know what they are doing and I'm just following their lead.

[Claudiu-Nicolae0]

- Similar listings prices

- Our occupancy rate

- Occupancy rate of other listings (not only similar)

- High/mid/low season

- Special events (concert venues, festivals, etc.)

- Official holidays

- Midweek / Weekends

You can't set prices once, and then never change or revise them, it is  a daily work. 

[Lisa723]

I'm getting great results with Wheelhouse (https://www.usewheelhouse.com/) Prices are much higher than smartpricing thinks they should be and I am consistently booking.

[Matthew285]

@Lisa723 we use Wheelhouse also!

The pricing has been much higher than the Price Tips suggest (and actually higher than I had calculated), yet our occupancy has been 95% to 100%.

I also really like that I don't have to do any work to keep the prices updated.

[Cheryl271]

I just signed up with wheelhouse.  The price is much higher, are the cleaning fees included in their pricing? 

[Matthew285]

@Cheryl271 No. Your cleaning fee is still added on top of your nightly price.

Wheelhouse sets your price, but is not aware of your cleaning fee.

However, as it runs it observes how well your place is booking up, and adjusts the price accordingly. I would imagine that means your cleaning fee would have an affect on your Wheelhouse price indirectly.

Over time, the goal is simple: to set your price dynamically so that you receive as much money as possible. If the price is too high, people will not book, and Wheelhouse will lower the price. If Wheelhouse feels people are booking too fast, Wheelhouse will raise your price.

(And, of course, it tries to take into account any special events and seasonality it knows about.)

[Cheryl271]

@Matthew285@Thank you for clearing that up, I just did away with the cleaning fee since it was make the nightly rate higher. I missed a booking last night because of it.

[Matthew285]

@Cheryl271 depending on your situation and the kind of travelers that stay with you, cleaning fees can either be entirely appropriate, or something to avoid.

Do you clean your own listing (we do), or do you hire someone to clean?

[Kathleen302]

Thank you for this suggestion! I just started hosting about a month ago and have been getting a lot of bookings using the smart pricing but when comparing prices (recommended $29 base for private room/bathroom with lots of amenities) to other listings ($30 for space in a field to bring your own tent), it feels like I could definitely be getting more but don't have the time to be researching prices every day. I just signed up for a free 30 days with Wheelhouse and will se how it goes! It already pretty much doubled my pricing....!

[Matthew285]

@Kathleen302 that sounds encouraging!

As Wheelhouse watches how your place books up, it will fine tune the pricing. Within a few months it will be pretty well dialed in. I am surprised sometimes at how much the pricing will vary, but (at least for our area) people go for the prices it calculates.

[Rebecca544]

Good luck and Please let us know how it goes!

[Angela954]

I wanted to follow up and see how wheelhouse worked out? I am new to Airbnb and trying to find a good price for my guest house. 

[Meredith57]

I have only been hosting for just under 2 months, so my experience is low, but we considered mortgage, insurance, utilities & the price of similar listings in the area. We have had 6 guests so far, with week long stays each, and 2 of them have mentioned to us, how they really appreciated how our price is consistent. One guest went as far as to say they were discouraged with the “bait & switch” prices of some homes that show a certain price, but when they go to book, that price triples. Perhaps my opinion will change as I evolve in this community, but I do not agree with jacking up the price just so I can make more money. I have a space to rent to guests, and if the amenities do not change during weekends or special events, how can I justify charging more?