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How do I set prices effectively?

How to differentiate pricing and set it up correctly:

Our clients are largely focused around self-service and making bookings efficiently and fast. Therefore clients expect to be able to customize a booking by themselves and respectively view a price during checkout that reflects their chosen configuration for the booking.
Our platform is built so that it defaults to standard price values which you can incrementally make more granular based on your strategy.

Here is a list of pricing options and where to find them on your space dashboard:

We propose the following steps to refine your pricing strategy:

Start with the hourly “Fair Rate” that represents the standard rate for your space without any special agreements, discounts or markups. This is the only info we require from you during signup.
Read more about what a “Fair Rate” is further down below
If you cannot provide an hourly rate, reach out to us for help. You have the option to not provide a standard rate but in that case your space will be “On Request” meaning that bookers have to ask you for a quote when trying to book. This booking flow is performing significantly worse (ca. 90% less bookings) than for most of our clients and we only suggest it for venues with more than 50 people or usually very complex booking requests.
Refine the space rates considering different time structures for the hire (e.g. daily, half-hour or explicit slots)
Let your guests know what the prices are for your equipment and catering extras.. Customers want to know how much your space costs before they make a request.
When deciding on which equipment and catering extras you will be able to provide, please keep in mind that we try to ensure that every space on Spacebase is equipped with a flipchart, projector and screen. It's also very important that guests can at least count on water, tea and coffee. Please set reasonable prices for extras and make it affordable for your customers.
If there are any additional fees that will be charged for every booking, e.g. cleaning fee or service staff, we suggest including in the overall price of your space.
Packages can be customized further and represent “bookable” units that can include several extras as standard and optionally your space already by default. You are even able to provide specific landing pages for packages that are built to convince clients about a great experience in your space
Once you are considered a preferred venue by one of our company accounts you’ll receive more pricing options to customize rates for your frequent clients. We will usually reach out to optimize the rate for your space given the volume commitments that come with the status.
Please make sure to only enter net prices (excl. VAT).

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.
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 costs 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 optimizing your pricing structure.
We communicate prices transparently to bookers. We do not undercut your prices.

Updated on: 05/06/2024

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