Location/value - I'm I charging too much?

[Anne1325]

I recently had 3 guests mark me down on location and value. Whilst our location is clearly described in the listing I will take that one on the chin, seems that you can’t please everyone as we do not live close to a large chain supermarket. Nope, correct, we live in a cashed-up lefty neighbourhood where people shop at the organic delis and fresh fruit & veg shops available. So, as per the listing, no Aldi indeed.

However value just baffles me. We have a 2 bedder and Airbnb out the spare room. By common sense you’d reckon that this should cover 50% of our total bills as they take up half the space and utilities. However after fees, taxes and tea/coffee/toiletries/laundry/cleaning products/etc it covers about 35% of our total bills. Helpful but hardly running a cash cow.

Our base price is $59 which I thought was really competitive in the market, and I compared this to people offering just the one room. We offer a room with a loft that can be used as a second bedroom which a recent guest, who scored us down on value, did.

When I then looked where she had recently stayed I noticed that she had rated a single room, out in the burbs but at 10 dollars less per night, as 5 star value. She then complained that this room was out in the burbs. Yep, that is what you get - the further out you go the cheaper it’ll be. Mind you, she still scored me down on location as well despite, surprisingly, not being in the burbs. Can you win? 

It seems that only those with one or two reviews mark us down on location and value but still, am I charging too much? What percentage of your bills do you reckon a spare room converted into an Airbnb should cover?

[Dave452]

I agree. Every time we discounted a night to fill a vacancy, those were the guests who gave us problems. Better to charge higher and allow a few vacancies than to bring in guests looking for cheap stays

[Kath9]

@Anne1325, no, you are definitely not charging too much - your home is beautiful and $59 for 2 people is cheaper than most backpackers. My listing is also very economical (I think the cheapest in town) but I still get marked down for value. People just seem to expect a 5-star hotel, regardless of the price. They just have no idea how much time and effort it takes to prepare for a guest - the washing, the cleaning, the changing of beds, the messaging back and forth - honestly, if I accounted for all the time I spent (once I take out costs for water, utilities, cleaning products, toilet paper, etc. etc.), I reckon my hourly rate would be around $5! And yet, STILL people mark me down for value.

As for location, well, there are literally hundreds of posts on this forum about that. As you said, people book the cheapest places possibly, knowing full well where they are located, and then complain = no brains.

 I now have a blurb in my guest manual explaining how the review system works (you may have seen this - I have uploaded it to other posts) and it seems to be helping a lot (happy to share it with you). I would also think about adding a cleaning fee - I did this once I realised how much more work guests staying one night were than guests staying two or more nights. You might find this helps.

[Anne1325]

@Kath9 Ha. I haven't even looked into an hourly rate for myself, I reckon it would look close to pathetic.

Yep - the location thing is baffling too. Apart from moving the house a few inches towards the city centre or opening that much longed for Aldi in the backyard what are you supposed to do? 

I would love to see the blurb if you don't mind? How do I find it on the forum?

[Kath9]

@Anne1325, you can find it here: https://community.withairbnb.com/t5/Hosting/Keeping-up-your-ratings/m-p/904528#M223597.

But honestly, Anne, what kind of host are you for not opening an Aldi in your backyard? 🙂

[Anne1325]

Thanks @Kath9, that looks great! Legend!

Sorry for the delay in reply - I was busy stacking shelves in the backyard, *chuckle*

[Linda108]

@Anne1325   I agree with @Robin4 first post in which he advises you to basically chill.  Your place is lovely with the wonderful mid-century vibe.  Your reviews are glowing and you show all 5 stars in all areas.  Perhaps you should be asking the guests for direct feedback before they post a review.  I often will ask a guest to be honest and even picky so I can get a clearer perspective of my space from their perspective.  

[Rosemarie9]

Love your listing Anne, and you are not charging enough- Aussie living in Ireland here who misses the great coffee and food in Melbourne and my old home of Sydney! I've definitely found that all the significant damage and occasional four star value reviews are from guests who booked at my lower off season price. One guest gave me four stars for value after her family used about 100 euros worth of toiletries alone. ( They left spray tan all over the walls as well). They also gave me four stars for location when I live in the most expensive area of town. You can't please everyone, as long as most of your guests are happy, that is all we as hosts can hope for. I would up your cleaning fee, and have a minimum of two nights, I know how battered my machine and dryer are from that constant washing and iron, not to mention me! I agree with not having guests for more than seven days, most of mine are two to four, and that suits me fine. I use part of my cleaning fee to provide extras like snacks which is really appreciated by guests, I figure that it is money well spent when starting the business. Honestly, your listing is great, wish I was there now myself! 

[Nathan233]

@Rosemarie9 Likewise! Your listings are beautiful and the tiling in your new bathroom is to die for! 

On everyone's great advice, I've upped the base price by a few dollars and started charging a (small) cleaning fee. It won't get me rich overnight, imagine that, but giving it a feel and can always increase/adjust from there on in.

I reckon it should be enough to weed out the bottom dwellers and make my life a little easier. And, with a little more disposable revenue, I can look into reintroducing/introducing some extras that would make a booking special in my opinion!

Everyone has been awesome with their advice. Such a great community behind this!

Ps, come and see me next time you're in Melbs! I lived in the UK for 7 years myself and I'd miss the weather down under too;)

[Robin4]

@Nathan233 

Anne, each time I have increased my price I have had a jump in bookings! I do think a lot of prospective guests filter their search by price and deliberately stay away from the cheapest listings.

The rigors of having to cope with 5 straight consecutive one night stays 'one out the next in' is starting to take it's toll on me and I am thinking of upping my cleaning fee by $15 and let a cleaning person do all my cleaning for me. I want to keep the enjoyment in what I do and I have a person who will do a turn-around for $30. I have seen her work and it is good so I think this will take a lot of pressure off me. 

And from my experience, all raising the price will do is increase the number of bookings!

Cheers......Rob