How to set price and earn 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 connects professionals to creative spaces, while helping small business owners monetise their underutilised spaces by the hour.

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How to accept booking on Chupspace

You received your first request, hurray! Thousands of people visit Chupspace everyday in search for the perfect space for their meetings, events & production. You received an email notification that someone is interested to book your place, but they still have yet to confirm a booking or make payment.

What's next?

You need to login to your account and check your booking details, and of course message the guests to see if its the right fit for them. How do you do that? Here’s some step by step guide on what you can and should do before accepting a booking

1. Login and check booking details

If you received a booking from Chupspace, you are sure to have an account by now. Login to your account and check on the Bookings tab. In case you forgotten your password, you can always request a reset on the sign in page.

2. Check on the summary

This is a summary of your booking you received, and the details when they book your space. Press Confirm button to see further details or chat with the guests.

3. Check booking details

It is advised to message the guests and invite them to book. This is to clarify any doubts and details of the guest before making payment, this will significantly increase your position in Chupspace and the guests experience.

4. Chat with guests online

Chat online with guests on their needs, and once you come into a mutual agreement on the price, and time. You can ask the guests to make payment through Chupspace.

By accepting a booking online, you are provided with dispute solution, customer support, and safeguard from scams and non-repayment. What’s best is that client gets an immediate invoice after payment so you can be hassle free without any paperwork.

5. Welcome guests and get paid

Once guests make a payment, they’re informed on how to access the space. From where to park, how to come to the space from the parking and how to access to the space. You can always edit this information in your My listing” tab.

All you have to do is to setup the place as informed, and the guest arrives and use the place as planned. If your guests need extra items like food, equipment and onsite support, always engage our concierge team to get everything handled for you with no additional charges.

Payment will be deposited directly into the bank account you provided at “Payment method” tab.

Other inquiries?

Get in touch with our support team by clicking the live chat! Once again, we hope you enjoy your journey as a host, and we want to let you know that we’re always here to help you succeed.

Because your success is our success.

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7 things to know before accepting a film shoot booking

Professional production crew often look for apartment and homes to shoot in. Whether if it’s a short film, TV commercial, drama, or movie, professionals can find spaces that suits their next shoot easily on Chupspace.

While you can rent your apartment on Airbnb, it is very unlikely that you’ll be renting out the whole house as you will lose your place for the night. There are no easy way to make use of your existing space before Chupspace in Malaysia.

What should you consider before accepting a booking?

Hosts on Chupspace shares their apartment while not losing a place to sleep at night for small meetings, parties and filming purposes. We heard hosts have concerns when being approached by production crew to use the house for shooting.

Here are 7 things that you should take into consideration before accepting a film production booking:

1. Will it disturbs my neighbour?

If you’re a host sharing your home, chances are you’re already disturbing your neighbour. As most people may feel uncomfortable having strangers in their private residence. Our advise here is that informing your neighbour when the shooting will be at and telling them your safety measures to ease them.

Tell the crew beforehand that there will be no loud noises and you reserve the right to ask them leave with no refund if they break the house rules. Most crews will inform you what scene they intend to shoot before booking your space, so you know if your space can cater their needs.

2. How much should I charge?

Depending on the scene, film production usually involve heavy equipment and these equipment consumes quite some electricity. Take into consideration this factor before setting your price for production. Typically, hosts charge around 4x extra on what you rent on Airbnb when renting to production crew to cover electricity cost.

If you’ve created a listing on Chupspace, you’re sure to know that you can set different prices for “Offsites”, “Events” and “Productions” listings. Setting different price for each while taking into consideration the the different nature for each type of booking is crucial for your hosting success.

3. Potential flooring scratches

Production crews usually brings in heavy equipment, and involve moving of furniture to make your space fit the scene. This may cause scratches on the flooring, or furniture in the process. Ask the crew if they intend to move furniture around so you can make preparation work or at least present when they move the things around.

Take a photo of the space before and after moving the furniture. If you find any scratches and damages after the shoot, present proof to Chupspace and make claims on the damages.

4. Insurance for shooting

It involves intensive paperwork if you requests insurance before shooting at your space. It safeguards you from any potential damages occurred to both the crew and you during the shoot. However, it is time-consuming to do it yourself, or by the production crew.

Luckily, marketplaces like Chupspace has built in a system that make safe, and protecting both parties during the booking.

Connecting people to creative spaces

Chupspace helps business owners monetise their spaces by the hour for meetings, events, and production.

5. Getting permit from local community

If the shooting involve public area, like roadside or outside your house compound, you should request the crew to show permit to shoot in those areas. No action needs to be taken if the shooting only involved scenes inside your compound, which is privately owned.

If your space has JMB/MC, you need to seek approval from them before the shoot to avoid disturbance on shooting day.

6. A lot of vehicles and crews

If you’re hosting the shoot in a private residence, you may need to get additional parking for the crew before the shoot. As most crews involved big trucks and around 10-15 people, it may disturb the local community.

Inform the crew and neighbours beforehand, prepare enough of parking for the crew. Tell them how many spots are available and where can / can’t they park in the area.

7. Should I collect security deposit?

Yes! As a lot of times there may be overtime, damages, and other charges that may require additional fees outside the paid amount. Collecting security deposit makes the crew take care of your space more, following rules and leave on time.

Bookings with Chupspace makes it easy to collect security deposit upon booking, and the amount is refunded automatically without needing you to be involved. 

Join the community

Discover, list and book spaces from local hosts

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Rent spaces shared by local businesses and homes

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Share your home for meetings, events & film production

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Renting your office space by the hour

You renovated your office but not fully utlising it

You’ve spent around RM50,000 renovating your office before you start earning a dime. That’s the norm of businesses in Malaysia and even the world. But as time goes by, you realise that the meeting rooms that you built to meet client, and the conference room is not fully used as you only have weekly or even monthly meetings.

There’s no undoing renovation and you keep paying rent for your underutilised office space. What’s worst is that now you’ve paid a year’s rental in advance to get discounts, and 4 months of deposits and your cash is stuck.

Current market situation

Small businesses suffer from increasing rental cost in Kuala Lumpur with a YoY rental increase of 5%-10%. In tough economic situations, over 90% of small businesses do not last over 2 years.

We’ve seen great cafes, coworking spaces, restaurants, bars and art galleries in urban areas move to a more rural side of the city so it can operate at a lower rent. But does it solve the fact that most businesses suffers from high rental cost?

Riding on coworking trend

A few years back, offices came into the trend of coworking. I assume everyone knows coworking spaces now, as a new one pops out every week across Malaysia. And bigger coworking space operators like WeWork, WORQ, Common Ground, Co3 have significant market shares due to strategic location.

A lot of office owners starts promoting their office as a coworking space, but how can you, a small business owner, compete with companies that do this for a living, and why do people care about coworking in your office? Furthermore, its a long term thing, when people starts coming into your office to work and leave, tops at RM10-RM20 per person. And they stick there for the whole day, and of course expecting coffee and snacks.

Coworking space in KLCC area

Rise of space sharing

As more people move into coworking spaces, and working as a self-employed individual or operate a small team. Often times, they need to move around the city to acquire customers and host events on a different side of town. Here’s when spaces come in, it lets professional to own (or rent) space in their property for a few hours on a particular day. Typically rented out by coworking spaces, in the area they’re visiting as there are transparent and affordable rates.

So why can’t they rent your office, which is nearer to their location and more affordable as compared? It is because they don’t know you exist.

It's an event space.. wait what?

As people have an event in a space in coworking spaces, hence the name “event space”. But after 1000+ bookings that happen on Chupspace, we see the use of space a little differently.

If you’re familiar with Airbnb, it is an online platform that allows homeowners to share their empty rooms for travellers to stay. But there’s a certain group where they would rent an Airbnb for social gathering, family reunion, or even filming. So the usage is much wider and bigger as what is intended by the founders.

Source: Shutterstock

Creating an inclusive world.. well, for small businesses

So how can you, as a business owner, combine these two concepts that I’ve just mentioned (Airbnb and event space), to monetise your empty space and idle times in businesses, so that you can offset your rental & operation cost?

Here we compiled a list of possible solutions that you can use to monetise your business space:

Rent for small activities

You can share your space with people who are interested in having small events, meetings or a film shoot.

As you rent the space from the landlord for 24 hours and only using it for 10 hours a day. Don’t think of events like music festivals or dance parties, but more like networking events, social gathering or even small birthday parties.

Offsite meetings

Income: RM1500/month
Cost: Utilities, staffing, equipment

Challenges: People who look for meeting rooms are always very urgent, and having a staff dedicated to handling inquiries that 80% do not turn into a customer is a headache.

Events

Income: RM6000/month
Cost: Utilities, staffing, equipment

Challenges: Additional staff is required for event logistics, people visiting the office time to time and planning ahead of time.

Photo & Video Production

Income: RM8000/month
Cost: Utilities, staffing, equipment

Challenges: Filming sometimes include heavy machineries that may damage your flooring, and moving of furniture around for the best scene

Key takeaway

Marketplaces like Chupspace lets you monetise your underutilised spaces for meetings, events & production. Where you can share your space by the hour, whether it’s 6PM-10PM, only on weekends or anytime you wish. Why take the hassle of doing it yourself while you can leverage?

Chupspace makes it safe and easy to share your space and earn extra income during downtimes of your business.

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