How to Price Your Space to Earn the Most Income

Picking the perfect price is like a super power. By changing a single number—your price—you can instantly change how customers see your space. Take the listing below, for instance. At RM300/hr, you get a very different impression than RM35/hr.

At RM300/hr, you would expect guests with big budgets—a company party or high profile meeting. These don’t happen very often, but when they do guests spend a lot. They also tend to be more complex, which means added work for you.

At RM35/hr, more casual bookings open up. Maybe a quick photo shoot or a networking event after work. For a three-hour activity, it’s easier for a guest to spend RM105 than RM900. As a result, the price fits more occasions.

Picking the right price

Of course, one price isn’t more “right” than the other. A RM300/hr space can be as successful as a RM35/hr space.

But picking the right price for your space can have a big impact on your bottom line. A study by McKinsey & Company showed that if companies can raise their price by 1%, it can lead to 8% higher profits. This is a bigger increase than if you lowered your costs or sold more volume.

So, how do you pick a price that’s right for you?

Finding the perfect price is an ongoing science, but here are three steps to get you headed in the right direction.

  1. How are similar spaces priced?
  2. How much would a guest spend on your space?
  3. How much do you need to charge to make it worth it?

This won’t give you an exact answer, but it will help you triangulate the right price for you. Let’s go through each of them.

1. How are similar spaces priced?

The first thing you’ll want to know is what other hosts with spaces similar to yours charge for their space. When it comes to comparing spaces, it’s important to look at a few key features of the space:

  • Hourly price
  • Capacity
  • Neighborhood
  • Anything special about the place
  • The activities they accommodate (off-sites, events, or productions)

Luckily, Chupspace makes finding comparable spaces really easy. You can search for spaces by price, capacity, location, and the activities they accommodate all  at chupspace.com.

If you really want to be thorough about it, create a spreadsheet for yourself. Every time you find a space that seems similar to yours, add a row to your spreadsheet and record each of the features noted above. Here’s an example:

You will probably see some trends. What do these spaces have in common? What makes them appealing? What makes your space similar or different? You should start seeing the range of prices that could work for your space.

A few pro tips when looking for similar spaces:

  1. Pick spaces with reviews. 
    Spaces with reviews have been booked before, so it’s more likely that they’ve actually gotten booked for the price you see.
  2. Re-do your search for different activities. 
    Prices on Chupspace change based on what the guest is looking for. If you want to book your space for meetings, the pricing will be different than photoshoots. Use the keywords “Off-Site”, “Event”, and “Production” to cover all the activities.
  3. Location matters. 
    The closer your space is to busy areas, the higher the prices will be. Make sure you’re finding spaces in similarly dense locations.

2. How much would a guest spend on your space?

This is a critical question. Just because you want to charge RM1,000/hr for your space doesn’t mean that guests will book it at that price. Throughout 2018, most guests look for spaces that is priced less than RM100/hr

But remember, the number of bookings isn’t the whole story. For instance, even though only 1% of bookings are at spaces that charge over RM500 per hour, these bookings make up 8% of host payouts. In other words, bookings for over RM500 per hour were less frequent, but they had big payouts for the hosts when they happened.

So how do you figure out how much guests will pay for your space?

The best way is to test a few different prices. From your analysis of similar spaces, you have a range of prices that could work for your space. Pick the lowest of the prices and start there.

You just want to get some experience with Chupspace to start. How will you prep your space? What will you have to tell guests? And how do you run a successful booking? Getting a few reviews under your belt will only help too. Guests rely on reviews to tell them what spaces are worth booking.

With every price you try, write down the number of inquiries, bookings, and payouts you receive. After several months, you should start to see which  price is right for you.

If you find out that price is lower than you hoped, you may need to make a few upgrades to your space. Oftentimes, adding just a few amenities can really increase a guest’s willingness to pay. For instance, if you want more meetings, show a big whiteboard or TV screen in your cover photo of your space. You may find guests are willing to pay much more for an all-inclusive space, and it might not be too much more expensive for you.

Understanding what your guests want to pay will take some trial and error, but once you find the right price, bookings will be a breeze.

3. How much do you need to charge to make it worth it?

The price needs to work not only for the guest, but for you too. Just because a guest will pay $10/hr for your space doesn’t mean it’s worth it to you to open your space to them.

You may want to consider:

  1. How many bookings do I want in my space in a month? 
    If you want to book everyday, you’ll need a lower price to attract more guests. You’ll want higher prices if you want to be more selective.
  2. What does my space earn if I don’t have a Chupspace booking? 
    These are opportunity costs. For restaurants and bars, they might be able to serve regular customers, so these costs are higher. An empty conference room on the other hand may never earn anything.
  3. How much does it cost for me to run a booking? 
    You’ll need each booking to cover your costs—not only the time and money to setup and clean the space, but also a portion of rent, mortgage, and utilities as well. Add these up and track them.
  4. How much risk am I taking on? 
    If you’re booking a meeting, maybe it’s very little risk. If it’s a fraternity party, it’s probably a lot more.
  5. How much effort am I spending? 
    This is personal to you. Managing your space will take your time and energy, and you want to make sure it’s fun and enjoyable for you.  

If you find your costs are too high in any of these areas, a few simple changes can go a long way. For instance, if you’re taking too much risk, limit the types of bookings you accept. If you want fewer bookings, increase your price or change your availability.

Your space and pricing are in your control, so make it work in your favor.

Final thought: Keep It Simple

I interview a lot of hosts, and I’ve noticed the successful ones have one thing in common:

They keep it simple.

They find a few types of activities that really work in their space. They find one simple price without a lot of upcharges. And they create a repeatable process to give guests a great experience.

At the end of the day, guests are comparing what they were charged with what you give them. So make sure you find a price that makes you and your guests happy.

Chupspace

Chupspace empowers small businesses to rent out spaces for additional income easily, while hosting memorable activities for businesses and individuals

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How this lady earns RM7500 in 3 days, and how you can do it too

From 2015, with the rise of Airbnb in Malaysia on their home-sharing platform that allows travelers to find a place to stay. Anne is one of the first hosts that jumps right into the trend. Like most property owners, she is not only sharing her extra room but also the whole house for travelers to stay.

Anne and her husband, CT, owns an old house in Sentul where CT grew up together with his parents and grandparents as the first generation of a Chinese family that moved to Malaysia

One of the room in Anne's Airbnb listing

The special thing

Her listing is very different from other properties that are listed on Airbnb. The whole house is full of antiques and gives a very nostalgic presence for its renters. Only renting the room for RM90/night, the travelers are still not satisfied. Because the house has no air-conditioner and is uncomfortable for most travelers from overseas.

Comparing with other listings that are offering a better place to stay with modern facilities at a lower price, Anne’s listing faded out on Airbnb, leaving the house unseen in the depths of 3million Airbnb listings. 

Trying different things

The couple quickly realize that the travelers are looking for a night of comfortable stay and do not appreciate the nostalgic presence of the building. The couple struggles to share their homes to rent everywhere on the internet, but there’s no one who is willing to stay in a home that is not comfortable.

They thought of reducing the price to RM65/night but not only that it backfired by positioning itself as a cheap listing in an inconvenient area, the rented night barely covers the cost to maintain the house. Old buildings are expensive to maintain due to higher wear and tear.

The AHA! moment

It started on a day at the end of 2018, when the couple received a call from a friend who is a producer at TV station. The call goes like this:

Producer: Hey, I’m looking for an old house for Chinese New Year shooting. On your Facebook I saw you posting an old house, is it yours?

A & CT: Yes, it is ours.

Producer: Wow, awesome. Can I drop by tomorrow and take a look? We’d like to have a film shooting here, we’re shooting a Chinese New Year video for Petronas. I saw on Airbnb you’re renting it for RM65/night for a room, how about the whole house?

A & CT: For the whole house, we can give a rate of RM800/night.

Producer: Wow that’s awfully cheap. Let’s talk about the price when I’m there tomorrow.

Anne hung up the phone, the word “Wow that’s awfully cheap” lingers in her mind for all day. How is the space awfully cheap? She started doing some homework and found other similar buildings are renting at RM150 per hour!

No wonder it is “awfully cheap”…

What changes

Renting spaces for commercial purposes can be often priced higher as compared to staying for the whole night.

This changes the whole mindset of the couple and started branding their space as a nostalgic event space, instead of a room for homestays.

Over the past 2 years, they’ve hosted a lot of events for businesses from a corporate getaway, annual dinner, traditional chinese weddings, commercial shoots and more.

Want to earn like them?

Share your space for meetings, events & production

Hosting with Chupspace just makes all the difference, it's easy to earn money just by sharing spaces for a few hour.
Vince L.
Host since Aug '18

It's not an overnight success

You can say that the space sells by itself because it is so special and it is one-of-a-kind. But over hundreds and thousands of spaces that we’ve got in touch with, Anne & CT is one of the most persistent and friendliest hosts we’ve met.

Always improving the space and maintaining the client’s happiness, is a continuous effort that makes them successful today.

There are days when there’s too much to handle, from client visits, accounting, payment collection and damage to the space, it’s the attitude that sets them apart from others. 

Anne W.

Anne is one of the first hosts on Chupspace from November 2018. She operates a bungalow cum. event space that makes her around RM20,000 per month.

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Why should I host?

Today’s economy is challenging for many businesses. In addition to the ever-present difficulty acquiring customers and sales, rising rents and high commercial mortgages in cities such as Kuala Lumpur have many small business owners sweating. We believe Chupspace has the solution: think differently about your underutilised space. By using productive space differently, people can find new venues to fit their passions.

As a space owner, you may be asking yourself, “Why should I host?”

We’ve talked to many entrepreneurs, artists, and companies who struggle to find great places to conduct their work. Sharing your workspace as a Host could make you money while aiding someone who is in need of a temporary space to jump-start their business. Chupspace makes it much easier to fill underutilized space and unlock the potential of your property.

Think about this– the neighborhood bakery that closes in the afternoon would be a great place for a new chef to test out his recipes, or a dance studio that’s not being used in the morning would be the perfect place to host a boot camp class. People shouldn’t confine their passions to a specific kind of space. Get creative! Who knows, it could spark new ideas and lead to new business ventures.

When a Host decides to share their space, they are welcoming a Guest into their business that they have built up and maintained over time. Our Hosts have told us that a Guest’s appreciation for their one-of-a-kind space is a big reason why they let others use it. Bookings through Chupspace allow users to connect with like-minded individuals, share creative ideas, and ultimately expand their professional network in a more personal way than what’s possible on any other social network.

So yes, there is a very real monetary benefit to listing your space. Our vision is that the money a Host receives from sharing their space will support healthy operations. But bookings on Chupspace usually end up being a much more profound experience for our users. When you join the community, you soon realize it’s not simply another revenue stream, but also a great way to meet and work alongside amazing people.

Find out why people list their Spaces on Chupspace and start hosting today!

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5 free ways to market your coworking & event space

5 Proven Ways to Market Your Coworking Space For Free

Coworking spaces have been around as serviced offices before made “cool” by WeWork. Following it’s failed IPO, investors, and businesses start to question the business model of every other coworking space out there.

In Chupspace, we’ve talked with hundreds of co-working space operators of all sizes. From WeWork, Common Ground right to pops-and-moms coworking space, the most common thing we heard is “Breakeven“.

Getting extra income

To grow every customer, you’ll need additional expenses like hiring more people, expanding offices (which most brick and mortar business does). Ultimately, membership services are only here to breakeven. 

Increasing prices of the membership is not a viable option as there are a lot of choices out there in the market that offers similar things. The only competitive advantage of most pop-and-mom spaces is the price and people are there because it is cheaper and near to home.

Renting out as event space

Most spaces rented out their event space to other businesses that wish to tap into the network of freelancers & small business owners.

Renting out spaces is a great way for any coworking space to make extra revenue to cover rent, operations and gain more exposure.

Be the first to be informed on the latest news and promotion

1. Facebook groups

Find your niche audience that you wish to target and where you think it’ll be easy for them to buy your product. Some Facebook groups work extremely well for coworking spaces as they’re full of freelancers and business owners.

It is important to craft your offering and not only spam promotional offers to these groups. Cause nobody likes to be spammed and shoved information down their throat.

Here’s some keypoint that we think you should include in your business pitch:

The table setting is suitable for lunch & dinner events
The bright ambience is suitable for meetings

2. Classified ads

Another great way to gain exposure for free is to share your posts on classified sites, although there are several limitations on most classified sites like reposting every now and then and low-quality lead. It is still one of the best ways to get your words out there into the world by tapping into a bigger pool of audience. Here are a few classified ads you can try on

The cons are that exposure is often limited if you’re not featured, however, the great side is that you can pay to get featured, usually for only a small fee.

3. Online marketplace

Most of the spaces we found have listed on platforms like coworker.com to get better exposure from overseas freelancers when they work travel. One of the main advantages of getting into an online marketplace is the free exposure that they get by ranking on the first page of google on a specific niche.

As you may find coworker.com from the keyword coworking space, you’re listing your space so that you’re also somehow ranked first place on Google. What’s best is that most marketplaces are free to list and only takes a small commission when your space is booked.

Here are some marketplaces and their key benefits when you list:

  • Flyspaces – exposure to more businesses & freelancers
  • Chupspace – exposure to a different customer segment of customers including creatives, film producers and businesses for meetings, events and production
  • VMO – exposure to birthday parties, annual dinner and any type of celebration

Chupspace aims to create a trusted community to share spaces with strangers through an easy to use platform.

4. Instagram #hashtags

The Malay community respond better to hashtags, if you’re looking for greater exposure to the community. This channel is for you

We’ve seen event spaces grown to tens of thousands of followers just via Instagram. It is one of the most effective free channels that you can get for any lifestyle related product & services. 

We remarked lifestyle because people go to Instagram to see great and beautiful things.

So unless your space is really awesome for small parties & girlish parties, you may come across a roadblock on Instagram. Here are some spaces that would do really well on Instagram.

  • Party spaces with theme
  • Engagement/wedding related spaces
  • Festive parties (Halloween, Christmas, etc)

If you think you have what it takes to stand out better than the rest, here are some hashtags that are commonly used by event space pages that do well on Instagram

#eventspacemalaysia
#eventspacekl
#tapakevent
#bilikseminarkl
#seminarhallmalaysia

You can easily explore these hashtags by following the page with the most followers and discover how they hashtag.

P/S: Just copy paste the whole damn thing.

5. SEO

I’d argue that this is free as it requires a lot of time and work

As every business wants, we want to rank ourselves on the top of our keywords, imagine every time people type “coworking space” your website pops out. Well unless you’re hiring an agency or a team to do SEO for you, it is very less likely the case. However, we still recommend you to go for it as you may score on long-tail keywords.

What is a long-tail keyword?

Instead of having your site to rank for a high-level keyword like “Coworking space”. It is easier to rank for a niche keyword that describes your space best.

For example, you’re a coworking space located in Bukit Jalil, with full equipment installed for a seminar.

It is easier to rank for the following terms (longtail)

  • coworking space in bukit jalil
  • seminar room in bukit jalil
  • coworking space for seminar
  • coworking space for seminar in bukit jalil

See how it niche down to a smaller fragment and you have less competition on the specific niche. Although you may argue that only a very low volume of people searching for the keyword. It works as a tool for you to get IMMEDIATE customers who already looking for a space to host a seminar in your area.

Hosting on Chupspace allows you to leverage SEO of the whole website.

Learn more about hosting here

Final thoughts:

There are many ways for you to market your space but it all comes with a price. The entrepreneurial journey is lonely but fruitful, it is necessary for you to get together with like-minded people and work as a team.

What is Chupspace?

Our aim is to help small business owners & distressed homeowners to make extra income by sharing spaces they already own.

Top tips: Why should I host?

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