hello YouTube this is richard founder of short-term rental secrets.com and
Airbnb super host today's video I'm finally getting around to doing an
actual product review of something you've heard me talk about a lot it's
really transformed my business and it's a no brainer it's dynamic pricing I
happen to use beyond pricing I'm a huge fan and I want to just show you exactly
how easy it is to use and let's get started come on over to the computer
alright in case you don't know what beyond pricing is and you don't
understand what dynamic pricing means let's just give them the real-life
example you know when you buy a plane ticket the guy sitting next to you pays
a totally different price it could be higher it could be lower it could be
based on like whether it's the last seat or the first seat and all of these other
variables and you don't quite understand what the algorithm is that's what beyond
pricing does for air B&B and VRBO listings so they take a look at all the
different supply in your zip code and they get really granular so it's like
specific to your neck of the woods your neighborhood maybe even your street and
they see how many listings are available on that given night and then they take a
look at what's called the demand is there surge pricing we all know about
uber is there surge pricing is there a conference a sporting event and serve
some concert is there a reason that they're seeing demand increase and it
balances those two things out so that you get the maximum amount of money per
night in your business okay so before I take a deep dive into the user interface
and the dashboard I just want to share with you the pricing and it's pretty you
know simple and transparent they'll give you a free month trial so you can test
it their users on average make 10 to 40% more on their listings and they only
charge one percent of the earnings so you're currently paying about three
percent on Airbnb and just imagine that your price goes up to about four percent
and then just taking a look at an actual example so if you have a two night
reservation at one hundred and twenty-five dollars per night with a
fifty dollar cleaning fee that would be three hundred dollars Airbnb charges
three percent so your payout is two hundred and ninety one dollars now be on
pricing takes one percent of that so it only costs two dollars and ninety one
sense for that booking but in my experience I'm seeing forty percent
revenue so one percent is like something that's a no-brainer
I would do that all day long okay so here we are at the important part it's
the dashboard and here you can see some of my properties
they have a few different things that I want to draw your attention to it's
really easy to turn the syncing on or off you can review the prices for your
listing we're going to go to that in a second and then you can look at the
market data that's like the stuff behind the scenes that goes into their
algorithm so you can understand that we're going to check that out too but
first I just want to go over some of the top-line metrics that they provide they
have a health score that basically is just tell you how well your listing is
doing in their mathematical terms and I want to talk about that so in this
particular case I have a 93 for this property and they say a hundred is ideal
so that we're doing well here the booking percentage over the next 30 days
they don't want you to book too little or too much again we're trying to
maximize the amount of money per night and some vacancy is okay and they have
tons of data about like when people book so they think that 50% booking in the
next 30 days is about right and you can see in this particular case I've got 53
percent and then based on their algorithms and data they don't want you
to have too many bookings in the next 90 days they think 32% is just right and
you can see out here I have 31 now what I wanted to draw your attention to is a
property that has worse health score and it's 69 it shows 83% booking in the next
30 days and 62 percent in the next 32 this is where you need to get a little
familiar with what this means and make adjustments accordingly now this base
run college this is the busy season it's summer so of course there's going to be
more than 30 percent in the next 90 days and of course there's going to be more
than 50 percent in the next 30 days and therefore I'm getting dinged on the
health score but since this is a cyclical place where there's like a
seasonality to it I'm okay with that let's turn to reviewing the prices so
where there is no coloration around the number those are these successful
bookings and if you click on it you can see the day this was six oh eight this
is six or two and again you can see that it changes every day
the following week when you have something that's in the lighter blue
those are numbers below the base price which is an input that you set what is
it that your starting point is and then what is the minimum
those are the only two things you have to set everything else is handled behind
the scenes and so when the number is below and you'll see that in that light
blue you can hover over it and it'll tell you why here's my base price of 625
it's a summer season so I guess they're increasing it by $56 the day of the week
being a Sunday it gets a reduction of $33 and then because the vacancy is less
than 7 days away they're predicting a price of 583 now conversely when the
numbers above your base price it gets that darker blue and you can see that
here here are 625 base price there's a seasonality factor of $51 and then the
day of the week being a Wednesday I get a $7 bump up and so they're asking 683
and that's basically the way it works you can see that I have what looks like
a lot of vacancy at first I was really uncomfortable with that but I've tried
beyond pricing I've used it for I don't know 18 months or so in many different
properties and I know it's generating much more income for me so I trust it
now uncomfortable yes trust it yes so let's take a look at some of the data
here's the charts so this is your revenue per available night and it's
basically your occupancy for the month times your average daily rate and if you
recall it a really bad March this past year but these things happen overall I'm
really pleased with how we've performed and we're doing quite well I would of
course like to have higher occupancy higher average daily rate average nights
stay I don't really care so much about but revenue per available night you know
I'd like to get back up and I think we're going to do just that as we come
into our busy season market data these are the things that they're using in
their algorithms so it talks about the neighborhood occupancy last year and you
can see it went 80% and then in January it was down to 52% so you know my 50% is
sort of in keeping with what you see in the neighborhood and then you can see
their occupancy a lot of people are booking that far out in advance so it
goes lower as you would expect and then you see things like neighborhood pricing
the Green Line is my price you can see it was way overpriced on Christmas
relative to everyone else but you know I think we did quite well and then finally
they take a look at the hotels and their pricing in the neighborhood which
affects sort of air B&B pricing like what is a hotel getting and we want to
consider that relative to our air B&B so they do all these you know fancy things
that the algorithms Ian who's the founder and CEO has a ton
of experience he's a quant guy and he crunches all the numbers and you know
it's been an amazing investment for me and for others that I've recommended it
to I don't know anybody who said that it doesn't increase their income although I
do hear that it doesn't work in all of the locations that people have Airbnb is
I think not every international location and I've spoken there's actually an
interview where we learned a little bit more about him so check that out and he
says that they cover about 85% of the marketplace so while they don't cover a
hundred percent they're covering more and more over time and if it doesn't
work for you now come back and check it in the future again it's really easy to
use you basically put in two numbers and it does the rest you put in your base
price you put in your minimum price check out like what it looks like make
sure you're comfortable with it and give it that free month you have nothing to
lose and a lot to gain I can't stress this enough I think this is the single
largest thing you can do to improve your revenue we hear a lot of questions about
how can I get more Airbnb as if I can't afford more property can I co-host can I
do this like how can I go convince other people to let me list their place and
that's all great and I love the entrepreneurial spirit but if you're not
using dynamic pricing this is probably the single biggest thing you can do to
like immediately improve your revenue and your profitability so I highly
recommend it again we've got a link below so if you want to get started I'd
appreciate if you click the link and does give us some commission but I'm
doing this because I really believe it it works really well for me and everyone
else who's tried it and if you want to get started click on the link below
super easy and let me know your thoughts go ahead and leave feedback once you try
to share with us how it's working for you I'd love to hear that and if you
haven't subscribed to the channel like we do
I'd really appreciate it thank you very much have a great day and happy hosting