Sep 29, 2023
5 mins read
Workspace Spend Management
While dynamic pricing has been used across industries like airlines, ride-sharing, and e-commerce for many years, implementing dynamic pricing strategies for flexible office spaces is a fairly recent development.
Dynamic pricing involves adjusting prices for goods or services based on demand, utilizing a diverse range of data sources. From historical sales data, competitor pricing, and real-time market demand, to inventory levels, customer behavior, and even external factors like weather and holidays, businesses can adapt their pricing in real-time to maximize their competitive advantage and profitability.
Take the airlines, for example, that adjust ticket prices on factors like your booking date and seat availability. Or ride-sharing services like Uber and Lyft, which change fares based on time of day and traffic conditions.
And most commonly, hotels adjust room rates based on occupancy rates, seasonal demand, and special events.
The coworking industry also works with the same perishable inventory as these industries and can also benefit from dynamic pricing. This is why we developed Flexspace® Dynamic Pricing, which allows coworking space operators to adjust their rates in real-time based on myriad factors and has pioneered the introduction of on-demand dynamic pricing to the coworking industry.
Before using dynamic pricing strategies, coworking space operators manually set prices for their offerings by employing a static and predetermined approach. They would consider factors such as costs, competition, and member feedback to determine their prices, and make adjustments through periodic reviews. That means one set of pricing throughout the year, regardless of low or peak demand periods, leading to missed opportunities to earn more during high-demand periods and attract more customers during low-demand periods.
While this static approach ensures a level of consistency and predictability in pricing, it does not support adapting to real-time changes in market demand, competitor actions, or specific circumstances. Consequently, it may not fully leverage the revenue-optimization potential that dynamic pricing for coworking spaces can provide by adjusting prices on the fly to capture peak demand periods and maximize occupancy.
By using Flexspace® Dynamic Pricing, coworking space operators can reap a number of benefits, like:
When implementing dynamic pricing strategies, businesses start by defining their goals, like achieving a specific unit or dollar sales volume, maximizing profits, or improving cash flow. Next, they establish a pricing strategy tailored to their unique business that considers how to attract and retain customers through pricing. Once their pricing strategy is set, they implement dynamic pricing tactics to align pricing with their goals. Finally, they track sales performance to assess and adjust their dynamic pricing strategy for optimal results.
With Flexspace® Dynamic Pricing, coworking space operators can easily evaluate their current performance, then set goals, and easily manage their pricing strategies in real-time, in a seamless, streamlined approach.
To get started, connect with a Flexspace team member today.