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Pricing is something you test.
When it comes to finding the right price for a coliving space, it's important to keep in mind that you want to find a sweet spot between the prices of local accommodation and other similar coliving spaces (worldwwide).
My opinion is that you don't want to price your coliving space too high and risk to get bad reputation within your local community and create local inbalance. Also, the huge price difference starts rumours arround your coliving guests and local rumours become very loud when they get published on the internet.
For example: You charge 1600€ for a month, but everywhere around you, the price is 300€/month. Your guests who can afford your place will not involve in local life, they will be too “loud” in the local bars and this can create a lot of ugly results (mostly for your business).
<aside> 💡 One curious info, we were charging double, but we didn’t like the profile of peole who would come to our space. We lowered prices, and this issue was fixed.
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Where to start?
One great way to start determining your price is to make a list of all your costs. This includes things like rent or mortgage payments, utilities, insurance, all salaries, and any other expenses you'll incur while running the coliving space. Once you have a good idea of your costs, you can then think about what profit margin you want to make and use that to set your prices.
It's also a good idea to do some research and see what other local coliving spaces are charging. This will give you a better idea of what's considered a competitive price.
You can also look at the prices of other types of local accommodation, like apartments or hostels, to get a sense of what renters in your area are willing to pay.
Keep an eye on the market and adjust your prices accordingly. Prices in coliving are changing.
In short, pricing your coliving space can take some research and number crunching, but by listing all your costs and looking at what other local accommodation options are charging, you can find the sweet spot that will make your coliving space competitive and profitable.
A lot of your future guests will decide if they should come to your space after they check if they can afford it.
Check if you have a room on playing with the price while diversifing your options and charging more from the companies, while charging less from your clients.
Also, think about having different pricing for students, or people who are just starting with their businesses, and charge by range. This will permit to bring people from different realities to your space. We do something similar.
Upsell is when you offer extra services for money inside of your coliving space. For example, you charge extra for the washing machine.
Here is my take on this:
Don’t upsell.
I believe that selling kills a vibe of a coliving space. Coliving should be related to the home atmosphere. And you don’t pay extra for a washing machine at your home.
We only sell Sende merch at the end of the stay.
So, what you can do?
It is better to calculate how many times people use a washing machine each month, the costs you suffer with a machine, and include it in the price. At the end of the month, this is not a huge cost, and it can help your colivers feel like at home, because they don’t need to pay extra on each corner of your space.
In Sende, we don’t upsell anything. People who come, and who don’t leave the village during their stay, they don’t need to touch money at all.
They need mandarina, they go in the garden and they pick one. For free.
This feeling of not thinking on spending money is super liberating for many creatives. When they open window in their cities, they see restaurants, discos, bars, banks, kiosks, shops, and they start thinking on what they have to do in order to afford all these spaces.
In Sende is opposite. They open the window and they see gardens, and food they can take for free. This gives them liberty to work better.
This is one such a small details that helps a lot to create a proper atmosphere.
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