Dynamic pricing and coworking: How to increase your revenue and fill capacity
Jun 21, 2024
4 mins read
Our Partners
Dynamic pricing and coworking are a combination that is helping to revolutionize the coworking space industry.
While dynamic pricing is a well-established strategy within the entertainment, hospitality, and travel industries, it has only recently been implemented to help coworking space operators increase their capacity and revenue.
Take Flexspace.ai customer Werqwise, who saw a 960% increase in the number of our meeting room bookings, which led to an increase in revenue by 850%, quarter over quarter.
So, how do you implement a dynamic pricing strategy for coworking? Here are four steps to consider:
1. Establishing objectives
As you consider a dynamic pricing and coworking strategy, it’s important to establish the objectives for this approach. For many coworking spaces, achieving a specific unit or dollar sales volume is a high priority. Additionally, maximizing profits and improving cash flow are important.
Whatever your objectives may be, it’s essential to create and track them from the beginning to help you analyze the data later on.
2. Gathering relevant data
Along with establishing objectives, coworking space operators need to gather data to understand where and when to best implement dynamic pricing.
It’s helpful to evaluate competitor pricing, as well as look at your own peak days and times, along with your typical lower occupancy days. Gathering all this data will help you more easily decide on the timing of your strategy.
Download our free Dynamic Pricing for Coworking ebook
3. Developing a pricing strategy
There are various types of pricing strategies that can be implemented with dynamic pricing, so it’s helpful to understand what they are to better decide which is best for you.
Here are three examples:
- Time-based pricing: Prices change based on the day of the week or season.
- Demand-based pricing: Prices are adjusted based on demand levels.
- Segmented Pricing: Different customer segments are charged different prices based on various factors.
4. Testing and refining
Once you’ve implemented your dynamic pricing strategy, your team will want to monitor its performance closely. What were the most successful implementations? What were the least successful.
You can also gather feedback from your customers, and analyze the impact of your strategy on your overall revenue and occupancy rates. And of course, you’ll want to continuously refine your pricing based on these insights.
How do I get started?
Keep in mind that implementing a dynamic pricing strategy is a detailed, intensive process, which is why so many coworking space operators are seeking the support of Flexspace.ai’s e-commerce revenue platform, which includes access to dynamic pricing, to help streamline the process and ensure that it’s frictionless from both an admin and a customer standpoint.
Flexspace.ai not only provides cutting-edge technology, but also a revenue management strategy that includes dynamic pricing to help operators build and expand an e-commerce business, resulting in significant revenue generation.
If you’re looking to exceed your business goals and want to fill your inventory and increase revenue with resources that you have right at your fingertips already, Flexspace.ai can help.
Learn more about the Flexspace ecommerce revenue platform
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