Common Mistakes in Setting Your Base Price

Hello all. Today we're going to discuss common mistakes made when setting your base price. As you may remember from our Quick Start series, the base price is a crucial factor in your pricing strategy. If you're experiencing issues such as no bookings, too many bookings, or if your pricing seems too high or too low, the first step is to examine and adjust your base price until it's just right.

Common Base Price Mistakes

• Setting the base price too high or too low.

• Basing the price solely on high season rates.

• Not setting a base price at all.

The base price tells us how much you believe your property is worth. It is essential because you know your property best, including the amenities you offer and your unique selling proposition. These intangible aspects are difficult to incorporate into an algorithm, which is why you should establish and input your base price.

How to Determine If You're Making Mistakes

1. Go to your PriceLabs account and click on Review Prices for any of your listings.

2. Check your current base price and compare it with the recommended base price.

3. Use the Help Me Choose a Base Price tool if available.

4. Compare your base price with the market average in the Market-Based Base Price section.

5. Consult neighborhood data and competitor maps to see how your prices align with the market.

Adjusting Your Base Price

If your base price is too high, consider reducing it slightly based on PriceLabs recommendations and market comparisons. Avoid drastic changes. If your base price is too low, and your occupancy is satisfactory, you might consider increasing it.

Avoid Basing Prices Solely on High Season

Do not base your prices solely on the high or low season. Instead, take an average of what your high and low seasons look like and set your base price somewhere in the middle.

Utilizing Competitor Data

Use the competitor map to examine listings in your vicinity and their pricing strategies. If your listing price is significantly higher than your competitors, it might be beneficial to decrease your base price. Conversely, if your prices are too low compared to your competitors, consider increasing your base price.

Regularly Check PriceLabs Recommendations

Every two or three weeks, PriceLabs provides recommendations. Check these recommendations regularly and make changes accordingly to stay competitive.

Thank you for your attention. Let's move on to the next topic.