How much can I charge?

how muchIf you live in the northern hemisphere, you may be thinking about your pricing for the coming bed and breakfast season.  I hope that you're thinking about putting your prices up every year.  Utilities go up, petrol goes up, food goes up, and you must go up too, if only to remain at the same level of profitability as last year!

But how much can I charge?  I've had this question from the private members' group on Facebook, and I thought it might be helpful for you to hear the answer too.  Here goes:

No-one can tell you how much to charge. It’s partly your psychology (can I really charge that much?), partly what your local area is charging, partly what else you can provide which adds “perceived” value, so keep in mind:

• There are customers for every price point
• Some people will avoid low priced accommodation
• Some people will avoid high priced accommodation
• Some people are looking for something for nothing
• Some people recognise value and are prepared to pay for it

Take a look around your local area and visit other B&Bs to see what they’re charging and what they’re offering. I invited local B&B owners to my place and they naturally invited me back.

Get a feel for the prices they are charging from low to high.

Position yourself at the top of the pricing bracket locally. Someone has to be the most expensive so it might as well be you!

Your own beliefs and psychology will get in the way here, so be careful about that!

Test the market – your customers will let you know how much they will pay, which is why you must focus on who you want to serve.  Start by asking your guests what they need, what they would like you to provide.

Keep increasing your prices every year (or more often if you can) to see how far you can go.

Be bold!

What are your thoughts on pricing? Why not leave me a comment below 😉