How to decide on pricing? Our Fair Rate Principle
When deciding on pricing for your space, it's very important to consider the customers’ perspective. Your bookers expect a clear and transparent pricing model and they expect to book
Therefore we highly suggest that you make pricing publicly visible and provide an hourly standard rate for each space (e.g. room). Some guidelines to consider around your price point
- If you have a website already and are providing prices visible on this site: the rate for our bookers is equivalent to the rates on your website.
- If you do not have pricing available publicly on your website then on spacebase you should provide the rate that you will usually quote if someone asks you for a “good” price for your space (without making any commitments to volume or deposits etc.)
- Include the Spacebase Commission into the pricing for the booker (read more)
A price that matches these requirements we call a “Fair Rate” for the booker. To sum it up, the “Fair Rate” represents the “best available rate” that a booker gets when checking your website or contacts you directly for a discount without giving any special commitment.
During sign-up and editing of your space we expect you to confirm that the standard rates that we have on file are matching these requirements. These standard rates are the general rates not considering weekend/evening markups or last-minute/volume discounts etc.
Why rate parity is important:
We believe that from your direct client interactions you know best what the fair rate is for your space. This is the rate that we need to display on our site and it needs to include our fair commission in order to create a partnership that will be mutually beneficial and successfully create business for you. (read more).
We require the “Fair Rate” from you because bookers can easily choose from many available spaces and different channels to book at. Therefore, bookers can compare rates easily and have the ultimate choice where to “shop”. They are unlikely to accept higher rates or additional fees and if the prices that we can offer do not match other channels, the marketing and service mechanisms that we have in place will not work for you.
- If you aren't sure about the pricing, take a look at comparable spaces (size, location). We also suggest that you start with lower prices and once you get more bookings, you may adjust the prices in order to see what works best for you.
- From our experience, most prices are too high: with lower prices, more earnings would be made by you. Please remember: variable cost for room bookings are often close to zero. That means every Euro you earn for the room goes into your pocket (minus taxes etc). If you think about it this way, you will probably arrive at a low price point - just try it out.
- If you cannot provide prices please mind that we can support your space profile via a “Request Quote” booking flow. However this booking flow is significantly less-performant than our booking flow that considers a rate already available.
- Feel free to contact us and we are happy to assist you in optimising your pricing structure.
- We communicate prices transparently to bookers. We do not undercut your prices.
To find more details about how you can yield your rate more effectively and differentiate pricing please read here