RE: [Coworking] Re: Price Increases - Notice Given? Grandfather Members? Other advice?

[paula]

Thanks so much for taking the time to reply Alex.  I appreciate your wisdom!

 

Best Regards,

Paula Blair



17401 Commerce Park Blvd., Suite 103

Tampa, FL 33647

813-498-1932

 <https://www.soarco-working.com/> SOARco-working.com

 

From: coworking@googlegroups.com  On Behalf Of Alex 
Hillman
Sent: Friday, June 1, 2018 11:24 AM
To: Coworking 
Subject: Re: [Coworking] Re: Price Increases - Notice Given? Grandfather 
Members? Other advice?

 

Lotsa good advice in here!

 

A few notes from an old head:

 

If you're considering raising your rates, do it. Don't wait for someone else to 
give you permission, or for the time to be "right." 

 

We give everyone a generous window of being grandfathered in the old rates. 3 
months is good. 6 months is generous. We give them the option to keep their 
existing rates beyond the grandfather window by pre-paying their membership. 
This helps with our cashflow, and gives them an incentive of keeping the olde 
rate.

 

It's also VERY important to communicate how the increase is going to benefit 
them! In your case, since this is closing a financial shortfall, don't be shy 
about letting people know that this will ensure that you can keep the lights on 
and start to have resources to reinvest, allowing you to say "yes" to more 
things that will improve the experience for them. 

 

We've never had private offices - but the advice I've given many others has 
been to adjust them appropriately as well along with everyone else to keep 
things equitable. Unless your contracts specify differently I can't come up 
with a reason that a private office would be treated differently. 

 

-Alex

 

 

On Wed, May 30, 2018 at 10:33 AM mailto:pa...@soarco-working.com> > wrote:

Thank you so much for taking the time to respond!  I appreciate your input.

 

Best Regards,

Paula Blair



17401 Commerce Park Blvd., Suite 103

Tampa, FL 33647

813-498-1932

 <https://www.soarco-working.com/> SOARco-working.com

 

From: coworking@googlegroups.com <mailto:coworking@googlegroups.com>  
mailto:coworking@googlegroups.com> > On Behalf Of 
Felicity Maxwell
Sent: Wednesday, May 30, 2018 10:03 AM
To: Coworking mailto:coworking@googlegroups.com> >
Subject: [Coworking] Re: Price Increases - Notice Given? Grandfather Members? 
Other advice?

 

Just wanted to add that when you are looking to close a shortfall, you may also 
want to look at increasing revenue by changing your pricing structure (vs. 
pricing). 

 

We have a WeWork coming in nearby, so in December (3.5 year after opening) we 
let our members know that we would be switching to a recurring monthly 
membership model. 

Previously we had let folks buy day passes in packs of 5 or 10 with out a 
monthly commitment - everyone loved the flexibility, but it made income 
projections impossible, since we had no idea when our day pass users would buy 
additional passes.  

 

Now we have everyone on a recurring monthly membership for 1, 5, or 10 passes.  
Its not quite as flexible as before, but we have lost maybe 2 members?  As soon 
as we explained that we needed more of a commitment to ensure our long term 
success, everyone who valued our space made the switch.  And I think it has 
really helped with community building and retention as well - now even if you 
are not a full time member of our space, you are committed (financially anyway) 
to come in and use our space for a certain number of days per month.  

 

We made this switch on the advice of our virtual CFO, who really helped us 
figure out a long term plan for success.  If you are struggling with income / 
expense issues, I totally recommend finding an expert - business coach, finance 
person, etc who can bring fresh eyes to your coworking space.  Some of their 
suggestions might seem counter intuitive but ultimately they might be changes 
you need to make in order to thrive.  

 

HTH

-Felicity 

On Saturday, May 26, 2018 at 10:07:57 AM UTC-5, pa...@soarco-working.com 
<mailto:pa...@soarco-working.com>  wrote:

I am looking for advice from Operators who have experienced a couple of years 
open.  I'm approaching my first anniversary (yipee!!!), and am trying to come 
up with a good price increase strategy.

 

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Re: [Coworking] Re: Price Increases - Notice Given? Grandfather Members? Other advice?

[Alex Hillman]

Lotsa good advice in here!

A few notes from an old head:

*If you're considering raising your rates, do it.* Don't wait for someone
else to give you permission, or for the time to be "right."

*We give everyone a generous window of being grandfathered in the old
rates. *3 months is good. 6 months is generous. We give them the
option to *keep
*their existing rates beyond the grandfather window by pre-paying their
membership. This helps with our cashflow, and gives them an incentive of
keeping the olde rate.

It's also VERY important to communicate how the increase is going to
benefit them! In your case, since this is closing a financial shortfall,
don't be shy about letting people know that this will ensure that you can
keep the lights on and start to have resources to reinvest, allowing you to
say "yes" to more things that will improve the experience for them.

We've never had private offices - but the advice I've given many others has
been to adjust them appropriately as well along with everyone else to keep
things equitable. Unless your contracts specify differently I can't come up
with a reason that a private office would be treated differently.

-Alex


On Wed, May 30, 2018 at 10:33 AM  wrote:

> Thank you so much for taking the time to respond!  I appreciate your input.
>
>
>
> Best Regards,
>
> Paula Blair
>
> [image: SOAR Orange 160x66]
>
> 17401 Commerce Park Blvd., Suite 103
>
> Tampa, FL 33647
>
> 813-498-1932
>
> SOARco-working.com <https://www.soarco-working.com/>
>
>
>
> *From:* coworking@googlegroups.com  *On
> Behalf Of *Felicity Maxwell
> *Sent:* Wednesday, May 30, 2018 10:03 AM
> *To:* Coworking 
> *Subject:* [Coworking] Re: Price Increases - Notice Given? Grandfather
> Members? Other advice?
>
>
>
> Just wanted to add that when you are looking to close a shortfall, you may
> also want to look at increasing revenue by changing your pricing structure
> (vs. pricing).
>
>
>
> We have a WeWork coming in nearby, so in December (3.5 year after opening)
> we let our members know that we would be switching to a recurring monthly
> membership model.
>
> Previously we had let folks buy day passes in packs of 5 or 10 with out a
> monthly commitment - everyone loved the flexibility, but it made income
> projections impossible, since we had no idea when our day pass users would
> buy additional passes.
>
>
>
> Now we have everyone on a recurring monthly membership for 1, 5, or 10
> passes.  Its not quite as flexible as before, but we have lost maybe 2
> members?  As soon as we explained that we needed more of a commitment to
> ensure our long term success, everyone who valued our space made the
> switch.  And I think it has really helped with community building and
> retention as well - now even if you are not a full time member of our
> space, you are committed (financially anyway) to come in and use our space
> for a certain number of days per month.
>
>
>
> We made this switch on the advice of our virtual CFO, who really helped us
> figure out a long term plan for success.  If you are struggling with income
> / expense issues, I totally recommend finding an expert - business coach,
> finance person, etc who can bring fresh eyes to your coworking space.  Some
> of their suggestions might seem counter intuitive but ultimately they might
> be changes you need to make in order to thrive.
>
>
>
> HTH
>
> -Felicity
>
> On Saturday, May 26, 2018 at 10:07:57 AM UTC-5, pa...@soarco-working.com
> wrote:
>
> I am looking for advice from Operators who have experienced a couple of
> years open.  I'm approaching my first anniversary (yipee!!!), and am trying
> to come up with a good price increase strategy.
>
>
>
> --
> You received this message because you are subscribed to a topic in the
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RE: [Coworking] Re: Price Increases - Notice Given? Grandfather Members? Other advice?

[paula]

Thank you so much for taking the time to respond!  I appreciate your input.

 

Best Regards,

Paula Blair



17401 Commerce Park Blvd., Suite 103

Tampa, FL 33647

813-498-1932

 <https://www.soarco-working.com/> SOARco-working.com

 

From: coworking@googlegroups.com  On Behalf Of 
Felicity Maxwell
Sent: Wednesday, May 30, 2018 10:03 AM
To: Coworking 
Subject: [Coworking] Re: Price Increases - Notice Given? Grandfather Members? 
Other advice?

 

Just wanted to add that when you are looking to close a shortfall, you may also 
want to look at increasing revenue by changing your pricing structure (vs. 
pricing). 

 

We have a WeWork coming in nearby, so in December (3.5 year after opening) we 
let our members know that we would be switching to a recurring monthly 
membership model. 

Previously we had let folks buy day passes in packs of 5 or 10 with out a 
monthly commitment - everyone loved the flexibility, but it made income 
projections impossible, since we had no idea when our day pass users would buy 
additional passes.  

 

Now we have everyone on a recurring monthly membership for 1, 5, or 10 passes.  
Its not quite as flexible as before, but we have lost maybe 2 members?  As soon 
as we explained that we needed more of a commitment to ensure our long term 
success, everyone who valued our space made the switch.  And I think it has 
really helped with community building and retention as well - now even if you 
are not a full time member of our space, you are committed (financially anyway) 
to come in and use our space for a certain number of days per month.  

 

We made this switch on the advice of our virtual CFO, who really helped us 
figure out a long term plan for success.  If you are struggling with income / 
expense issues, I totally recommend finding an expert - business coach, finance 
person, etc who can bring fresh eyes to your coworking space.  Some of their 
suggestions might seem counter intuitive but ultimately they might be changes 
you need to make in order to thrive.  

 

HTH

-Felicity 

On Saturday, May 26, 2018 at 10:07:57 AM UTC-5, pa...@soarco-working.com 
<mailto:pa...@soarco-working.com>  wrote:

I am looking for advice from Operators who have experienced a couple of years 
open.  I'm approaching my first anniversary (yipee!!!), and am trying to come 
up with a good price increase strategy.

 

-- 
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RE: [Coworking] Re: Price Increases - Notice Given? Grandfather Members? Other advice?

[paula]

Thanks so much for taking the time to reply!  I appreciate your input.

 

Best Regards,

Paula Blair



17401 Commerce Park Blvd., Suite 103

Tampa, FL 33647

813-498-1932

 <https://www.soarco-working.com/> SOARco-working.com

 

From: coworking@googlegroups.com  On Behalf Of 
Angel Kwiatkowski
Sent: Tuesday, May 29, 2018 5:05 PM
To: Coworking 
Subject: [Coworking] Re: Price Increases - Notice Given? Grandfather Members? 
Other advice?

 

1.  How old was your space before you increased your prices?

I have changed my 3 times in 8 years. Mainly due to my own lease rates going up.

 

2.  Do you grandfather current members?  Permanently?  For a time period?

No. 

 

3.  How much notice do you give prior to the increase?

 I give current members about 3 months notice before I price increase.

 

 

4.  What do you want me to know that I'm not asking?

You can do it!

 

5.  I also have private offices I (month-by-month...no leases).  If your 
answers above are different for this situation, please share your expertise.

Month to month means they have no security to get the same rate over the long 
term. I make sure my offices are slightly above market rate b/c they are month 
to month.


On Saturday, May 26, 2018 at 9:07:57 AM UTC-6, pa...@soarco-working.com 
<mailto:pa...@soarco-working.com>  wrote:

I am looking for advice from Operators who have experienced a couple of years 
open.  I'm approaching my first anniversary (yipee!!!), and am trying to come 
up with a good price increase strategy.

 

1.  How old was your space before you increased your prices?

2.  Do you grandfather current members?  Permanently?  For a time period?

3.  How much notice do you give prior to the increase?

4.  What do you want me to know that I'm not asking?

5.  I also have private offices I (month-by-month...no leases).  If your 
answers above are different for this situation, please share your expertise.

 

Thank you so much!  The increase is needed to help close the income to expense 
gap, but I have a concern about continuing to grow the base with a new price 
structure.

 

Paula

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[Coworking] Re: Price Increases - Notice Given? Grandfather Members? Other advice?

[Felicity Maxwell]

Just wanted to add that when you are looking to close a shortfall, you may 
also want to look at increasing revenue by changing your pricing structure 
(vs. pricing). 
 
We have a WeWork coming in nearby, so in December (3.5 year after opening) 
we let our members know that we would be switching to a recurring monthly 
membership model. 
Previously we had let folks buy day passes in packs of 5 or 10 with out a 
monthly commitment - everyone loved the flexibility, but it made income 
projections impossible, since we had no idea when our day pass users would 
buy additional passes.  

Now we have everyone on a recurring monthly membership for 1, 5, or 10 
passes.  Its not quite as flexible as before, but we have lost maybe 2 
members?  As soon as we explained that we needed more of a commitment to 
ensure our long term success, everyone who valued our space made the 
switch.  And I think it has really helped with community building and 
retention as well - now even if you are not a full time member of our 
space, you are committed (financially anyway) to come in and use our space 
for a certain number of days per month.  

We made this switch on the advice of our virtual CFO, who really helped us 
figure out a long term plan for success.  If you are struggling with income 
/ expense issues, I totally recommend finding an expert - business coach, 
finance person, etc who can bring fresh eyes to your coworking space.  Some 
of their suggestions might seem counter intuitive but ultimately they might 
be changes you need to make in order to thrive.  

HTH
-Felicity 

On Saturday, May 26, 2018 at 10:07:57 AM UTC-5, pa...@soarco-working.com 
wrote:
>
> I am looking for advice from Operators who have experienced a couple of 
> years open.  I'm approaching my first anniversary (yipee!!!), and am trying 
> to come up with a good price increase strategy.
>
>

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[Coworking] Re: Price Increases - Notice Given? Grandfather Members? Other advice?

[Jeannine van der Linden]

Congratulations and happy birthday!


> 1.  How old was your space before you increased your prices?
>

Three years.
 

> 2.  Do you grandfather current members?  Permanently?  For a time period?
>

I grandfathered folks who had already been there a year and who either 
would 1) pay a year in advance for the lower price or 2) had gone a year 
never being late with the rent.  
 

> 3.  How much notice do you give prior to the increase?
>

Three months
 

> 4.  What do you want me to know that I'm not asking?
>

About half my coworkers reacted by saying, "you should have done it 
sooner".  

Make sure you raise the rent enough that you wil not have to do it again in 
the short term.  Nickel and diming people is not a good business strategy.
 

> 5.  I also have private offices I (month-by-month...no leases).  If your 
> answers above are different for this situation, please share your expertise.
>

It really depends:  we raised the rent for our basic membership, because it 
was breaking even but not making money.  I told the coworkers that and 
explained that this means having them in the space is a hobby and not a 
business, which is not sustainable. 

The other memberships were making money so I left them alone.

>
> Thank you so much!  The increase is needed to help close the income to 
> expense gap, but I have a concern about continuing to grow the base with a 
> new price structure.
>
> You cannot grow your business with the existing price structure if there 
> is an income to expense gap.  This is the reality and your coworkers should 
> know this. A profitable coworking space is free to make choices and that is 
> important for them also. 
>
 
 

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[Coworking] Re: Price Increases - Notice Given? Grandfather Members? Other advice?

[Garrett Tichy]

Hey Paula, Garrett here!

I own and operate Hygge . We're coming up on 3 
years now. See below for my answers/experiences. Hopefully this helps a bit 
as you continue to grow! Congrats on the one year and success :) 

1. We've never increased the pricing for flex membership. We've been 
$124/month since the day we opened and have no plans for the remainder of 
our lease terms to increase our prices. We did a pre-open $99/month 
founders discount to raise awareness. Otherwise, pricing has not fluctuated.

For offices. We are also month to month with no leases. Everything is 
membership based. If someone stays in an office forever their price will 
NEVER increase. I believe that's what separates us from the rest of the 
market. No typical leases. No escalation. 

If an office opens we raise the price to market. We've been able to do this 
over and over. Example. Day one offices were $600 are now right around 
$850. We've been mostly able to stay at 100% occupancy with these increases 
when there's a change in occupant.

2. Members are grandfathered. I believe in rewarding those that are loyal 
and stay with you a long time. There's no need to risk alienating people 
for small incremental growth in my opinion.

3. So with all that said... We did acquire a coworking space that was 
extremely undercharging their members... like $5/month for Nonprofit 
organizations for full flex benefits. This was insane. We gave them a 3 
month heads up that we would be bringing them up to the $124/month flex 
pricing. We lost all 10 organizations. This was fine. They were heavy 
meeting space users and had absolutely no appreciation. 

4. I'd be curious what kind of increases you're looking to make.

5. See answer #1

On Saturday, May 26, 2018 at 11:07:57 AM UTC-4, pa...@soarco-working.com 
wrote:
>
> I am looking for advice from Operators who have experienced a couple of 
> years open.  I'm approaching my first anniversary (yipee!!!), and am trying 
> to come up with a good price increase strategy.
>
> 1.  How old was your space before you increased your prices?
> 2.  Do you grandfather current members?  Permanently?  For a time period?
> 3.  How much notice do you give prior to the increase?
> 4.  What do you want me to know that I'm not asking?
> 5.  I also have private offices I (month-by-month...no leases).  If your 
> answers above are different for this situation, please share your expertise.
>
> Thank you so much!  The increase is needed to help close the income to 
> expense gap, but I have a concern about continuing to grow the base with a 
> new price structure.
>
> Paula
>

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RE: [Coworking] Re: Price Increases - Notice Given? Grandfather Members? Other advice?

[paula]

Thanks so much for the reply Angel!

 

Best Regards,

Paula Blair



17401 Commerce Park Blvd., Suite 103

Tampa, FL 33647

813-498-1932

 <https://www.soarco-working.com/> SOARco-working.com

 

From: coworking@googlegroups.com  On Behalf Of 
Angel Kwiatkowski
Sent: Tuesday, May 29, 2018 5:05 PM
To: Coworking 
Subject: [Coworking] Re: Price Increases - Notice Given? Grandfather Members? 
Other advice?

 

1.  How old was your space before you increased your prices?

I have changed my 3 times in 8 years. Mainly due to my own lease rates going up.

 

2.  Do you grandfather current members?  Permanently?  For a time period?

No. 

 

3.  How much notice do you give prior to the increase?

 I give current members about 3 months notice before I price increase.

 

 

4.  What do you want me to know that I'm not asking?

You can do it!

 

5.  I also have private offices I (month-by-month...no leases).  If your 
answers above are different for this situation, please share your expertise.

Month to month means they have no security to get the same rate over the long 
term. I make sure my offices are slightly above market rate b/c they are month 
to month.


On Saturday, May 26, 2018 at 9:07:57 AM UTC-6, pa...@soarco-working.com 
<mailto:pa...@soarco-working.com>  wrote:

I am looking for advice from Operators who have experienced a couple of years 
open.  I'm approaching my first anniversary (yipee!!!), and am trying to come 
up with a good price increase strategy.

 

1.  How old was your space before you increased your prices?

2.  Do you grandfather current members?  Permanently?  For a time period?

3.  How much notice do you give prior to the increase?

4.  What do you want me to know that I'm not asking?

5.  I also have private offices I (month-by-month...no leases).  If your 
answers above are different for this situation, please share your expertise.

 

Thank you so much!  The increase is needed to help close the income to expense 
gap, but I have a concern about continuing to grow the base with a new price 
structure.

 

Paula

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[Coworking] Re: Price Increases - Notice Given? Grandfather Members? Other advice?

[Angel Kwiatkowski]

1.  How old was your space before you increased your prices?
I have changed my 3 times in 8 years. Mainly due to my own lease rates 
going up.

2.  Do you grandfather current members?  Permanently?  For a time period?
No. 

3.  How much notice do you give prior to the increase?
 I give current members about 3 months notice before I price increase.


4.  What do you want me to know that I'm not asking?
You can do it!

5.  I also have private offices I (month-by-month...no leases).  If your 
answers above are different for this situation, please share your expertise.
Month to month means they have no security to get the same rate over the 
long term. I make sure my offices are slightly above market rate b/c they 
are month to month.

On Saturday, May 26, 2018 at 9:07:57 AM UTC-6, pa...@soarco-working.com 
wrote:
>
> I am looking for advice from Operators who have experienced a couple of 
> years open.  I'm approaching my first anniversary (yipee!!!), and am trying 
> to come up with a good price increase strategy.
>
> 1.  How old was your space before you increased your prices?
> 2.  Do you grandfather current members?  Permanently?  For a time period?
> 3.  How much notice do you give prior to the increase?
> 4.  What do you want me to know that I'm not asking?
> 5.  I also have private offices I (month-by-month...no leases).  If your 
> answers above are different for this situation, please share your expertise.
>
> Thank you so much!  The increase is needed to help close the income to 
> expense gap, but I have a concern about continuing to grow the base with a 
> new price structure.
>
> Paula
>

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