Hey what’s up friend’s, its Richard found a Short-Term Rental University and Airbnb Super Host coming to you from a work in progress our new studio. Charles and I are setting it up but we had some thoughts we needed to capture them, so let’s get started!
So today I want to talk to you a little bit about something that’s happening in real time it’s contemporary. I’m PRICING my Jackson Hole listing it’s going live and I want to talk to you about:
The Five things that I look for when I price my property
The very FIRST ONE is establishing a base price! So I just did this, I just got my first listing, I wasn’t really ready, the photographs weren’t ready, it was unfurnished, and so on, but I listed it anyway check out my video revenue is greater than ready
I listened to my own advice and I got a booking! So it was great! The pricing point though, how did I figure out what the pricing was? Well here’s what I did:
- The very First thing that I did was to establish a base price. The easiest way to do that is to speak to local property managers interview them figure out what they would charge as it turns out they’re all looking at pretty much the same data and therefore the pricing was relatively similar they all thought during peak season I might command I don’t know let’s pick a number $400 a night some of them thought it was 375 some thought it was 425 but fairly consistently they all thought it was about 400 dollars a night and they all thought that I would rent again let’s just pick a number about 90 nights in the peak season
- The Second thing though was I always think I can do better than that I tend to think that people are generally looking to please but not outperform looking to take moderate risk but not significant risk and it’s not really their property so it’s a little bit of a job and that’s not to say that there aren’t wonderful property managers out there before you start putting the thumbs down and disliking there’s some great property managers out there there’s some great Airbnb hosts and co-hosts but generally speaking I’m of the belief that I can always do better than them than the masses and the average result and I would encourage you to think that way too so if $400 is the number I’m shooting for say 10% percent more for $400, $450, $475 even and I’m gonna add a lot of value through my Super Host and my hosting capabilities and my cleaning and so on so I think I can do better
- So the Third thing was something that I believe in will include the link: Dynamic Pricing. I’m a big fan of Beyond Pricing I’ve used it in all my other listings they’re available here in Jackson Hole so I connected my service to be on pricing something that I recognized and I just want to share with you right now is that process of syncing beyond pricing to my listing took a little while it made me a little bit uncomfortable but it’s not in real time.
So, I went to dinner, I went to sleep, whatever it was, woke up the next morning, the dynamic pricing was there and then I took a look at what dynamic pricing thought I would do versus my base price. I put in the $400, not what I thought I could do 475. I want to start lower and I want to get some bookings and I want to get some FIVE-Star reviews. I have tons of videos that talk about that so I wanted to see what beyond pricing did.
And sure enough beyond pricing thought I could do more than the $400. Meaning,
There is more demand during peak season in Jackson Hole then there are listings available on AirBnb, So I priced it HIGHER!
So the other thing I want to point out there is that Airbnb suggested that I put a 20% discount on the first three bookings. They say that that’s best practice and it’ll attract more interest and it’s like an enticement since there are no reviews of the property they think it’s a good idea to give a 20% off discount for the first three bookings and I figured why not let’s just go ahead and do this.
The sooner I get five-star reviews the sooner I’ll get more bookings and build trust and credibility. So a small investment marketing dollars if you think of it that way. I thought was worthwhile and I did that. AirBnb priced everything up higher anyway so the 20% off didn’t really matter to me and sure enough within I don’t know I think two days or so I got my very first inquiry. I was unable to accept it that’s a whole different story but I went and got a second inquiry which I did accept.
It was over Fourth of July weekend, the pricing was $475 per night. Again that’s what I thought I could achieve. I still think I can do higher, especially during a fourth of July period. But it was my very first booking, I wanted it I wanted the income, I want a proof of concept, I wanted people to come and give me a five-star review, so I went with it. And so you may be wondering what do I think I can get here during peak season if I thought 4475 was achievable? I really think I can get more like $550. We’re gonna see but at $550 that’s a really sound investment and I think that there’s just so much demand and so little supply of high-quality inventory that I think I’ve got a diamond in the rough here and I’m gonna try my very best to get there. I won’t get there overnight but that’s okay, like I said real estate is a very slow and steady long-term investment I plan on owning this property for 30 years or longer
So I don’t need to get rich quick so it doesn’t really matter what your property type is or whether you’ve launched or you’re getting launched it doesn’t matter if the principle is the point of the whole video figure out the base price then lower it do the Airbnb 20% if they recommend it for you think of what you think you can target connect it to dynamic pricing raise your price over time but just get started and I think from my perspective this is gonna be a really sound investment and I think yours will be – we’re at a really critical point here where there is a supply and demand imbalance and I think Airbnb hosts in prime locations with prime properties with great hosting tactics can make far more money today versus a long term standard lease so I still recommend people get started or expand or grow or convert long term ones – short term ones it’s just it’s a very good time to be a short-term rental host part of the reason that I’m doing this here in Jackson Hole and I want to hear from you what are you up to what are you seeing I know there’s a lot of competition out there and we’re gonna film a video on that so stay tuned for that but in the meantime if you like this video give me two thumbs up I know you can’t but just in spirit – thumbs up and the way you can thank me go ahead and subscribe to the channel I’d really appreciate that very much now Charles and I back to cleaning up we got a lot to do.
Thanks in advance! Happy Hosting! Best personal regards,
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Richard Fertig Founder Short Term Rental University