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Units House 3 - bedrooms House > 3 - table [ [ Units , table [ [ House 3 - ] , [
Units House bedrooms House tableUnitstableHouse bedroomstableHousebedroomsbedrenttableApartmentbedroomstableApartmentbedroomstableApartmentbedroom# of units,Price per night,Weight in sales mix,Ownervendor portion Housekeeping expense,Utilities expense,tableRepairmaintenanceinsuranceLaundry expense,Setting up expense,tableVariable selling andmarketingtableVariable admininstrativeexpenseTotal variable cost,Contributiion Margin CM bedrooms Apartment bedrooms Apartment bedrooms Apartment bedroom
# of units
Price per night
Weight in sales mix
Ownervendor portion
Housekeeping expense
Utilities expense
Repairmaintenanceinsurance
Laundry expense
Setting up expense
Variable selling and marketing
Variable admininstrative expense
Total variable cost
Contributiion Margin CM
Our business revolves around shortterm accommodations, mandated by Toronto city bylaws to be rented out for a minimum of one month. Consequently, our pricing model is structured around the basic rent for a onemonth unit rental, supplemented by the cost of accommodation services we provide. These services encompass furnishing the units, biweekly housekeeping and cleaning for each unit, maintenance, and repairs, as well as covering all utility expenses. Approximately of the total rent is attributed to these services. Additionally, we consider of the total rate as our desired rate of return for shareholders. including myself, my husband, and my son
The challenge arises when the cost of our services exceeds the allocated of the total rent, thereby diminishing the desired rate of return. In addition, during the high season months summer and spring our occupancy rate is while during the other half of the year, we typically experience an average occupancy rate of I've also come across alternative pricing strategies adopted by other companies. Could you please elaborate on these pricing strategies and discuss other pertinent factors we should consider when selecting the optimal pricing method?
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