Are you launching your concierge service and you are unsure about setting the price of your services? I share with you some keys to help you.
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Hello and welcome to this live. Listen, I'm delighted to see you again today, because you can imagine that it wasn't a given at all. There were major internet problems, I almost couldn't connect, so that's why I'm so late compared to the usual schedule of our Lives, and our daily videos . But here I am, happy to be with you and finally able to connect. Today we are going to talk about an extremely important point, especially if you are in the following situation: you want to launch your concierge service, and you are hesitant, in fact, about the price to charge in terms of services from owners. You say to yourself: “How am I going to bill for my services? Should I put a higher or lower price? Do I have to be on the menu? Do I have to have a package? Should I put a percentage or a prefix? » There you go, if you're asking yourself all these questions, you're in the right place, stay with me, we're going to talk about all that. I'm going to give you some tickets, precisely, to help you in this sense. So, I remind you, for those who are watching the video for the first time, do not hesitate to subscribe to the YouTube channel and to the I show Complete page, that way, you will not miss any of my daily videos. I make a video from Sunday to Thursday, every day, on topics that are the ones you ask me. So, it will help you increase your turnover as a seasonal rental company or your activity as a concierge service.
So, the question I received, and that's why I said to myself: "Hey, it's interesting to do a live on that", and then I also saw other people asking questions about other groups. It’s a question from Romain who says to me: “Hello, great video. Thank you for your advice…” Thanks to you, Romain. It's super nice. “…I set up my concierge service a few months ago, and I am currently in contact with owners…” Already, that’s good. Congratulations to you for taking the plunge. “…On my site, I display 20% commissions. Should they be presented tax free or inclusive of tax? Should you invoice the platform commissions before or after? » Thank you for your answers. So, we are going to look at this subject which is really a crucial subject. When you launch your concierge service, it's true that at the beginning, you can be a little unclear. It's normal.
The first thing is that there are two ways, in effect, of invoicing. There is the package method, therefore the service, where in fact, we will end up with a menu, in fact, like in a restaurant. We say to ourselves: “A check-in, that’s it; an arrival, that’s it; a departure, that’s it; an inventory is so much; housekeeping is so much; per square meter, it is a function of the time spent; an emergency intervention is so much. » So that's the first way to set your prices, it's in fact to create an à la carte system. Afterwards, there is a second way of setting prices, which is to set up a percentage system, in which you say to the owners: “You give me the keys to the apartment, and I manage the apartment by globality. You give me, every month, a percentage of the income you earn from the activity. » What we usually observe on the concierge market, to give you a somewhat global vision, is generally, for the concierge services which will do the operational part, that is to say they will do arrivals, departures, cleaning, but not necessarily the online marketing part, it's more something that is à la carte, it's true. We will just buy the household, simply, for example; or cleaning, arrivals, departures. So that’s really for the operational field part. But for everything that is a service which includes both the field, online marketing, advertisements and customer relations, that, in general, is rather a fixed-price operation, that is to say at the percentage of the sales. It makes a lot of sense, though, I think, because it means that, as a percentage of sales, you are also motivated to increase sales. So, to me, it makes sense. But it's generally done like that.
Now, I see advantages and disadvantages in these two pricing methods. If you make the prices à la carte, with a fixed amount... And besides, incidentally, we could also consider doing this operational and marketing part with a fixed amount. This is something I've heard before, and it's something that could be heard. Doing this at a fixed amount makes sense, in a sense, because it reassures the owners, so it's true that the owner says to himself: “Every month, I'm going to have this amount. I'm reassured, it won't explode. It's not going to go down, but it's not going to explode. » So, it can be reassuring for the owner. The only thing, especially if you include marketing inside, you're not motivated for performance, actually. And the thing is, if the apartment explodes because of the quality of your work, if you manage to double or even triple the turnover that the owner obtains, for you, it doesn't change anything. So, you are not more motivated than that to perform well. So, I find that it's reassuring for the owner, it can help convert some of the more cautious owners, but in the long term, it's not fulfilling, as a mode of operation, because you're going to see the numbers increase, and you're not going to gain anything more from that.
Afterwards, if we talk about operating on a percentage basis, the advantage, unlike fixed, is that you are motivated to perform. So, the more it works, the more you get paid too. But that's what I was told once before, it might seem a little unfair. Why might this seem unfair? Because for example, when we have a stay that arrives for 14 nights, well, we will take a percentage of 14 nights. It's not like the operation of the service, where suddenly, concretely, a traveler arrives for 14 nights, for the service, we will invoice a cleaning, an arrival, and a departure, and that's it. And then, for 14 nights, the owner is at peace. If we're looking at a percentage, it's true that we're going to take a percentage of the value of the entire 14 nights. So, that might seem a little unfair. I find that it is not, because even if we have long stays, even if we manage to sell the same thing much more expensively, it is still the quality of your work that made it possible to obtain long stays, which allowed the customer to ultimately book; because you answered a lot of questions beforehand. And so, for me, it's not unfair. To me, that really makes sense. Afterwards, it is in fact the choice of each business manager. When you create your concierge service, you are not just creating a service strictly speaking, you are creating a vision, you are creating a desire to operate in a certain way, you are creating a desire to meet the needs of the owners with your idea, your way of being. So, perhaps you will find yourself better in the à la carte system, which is very square, very predictable, and which will reassure the owners.
If someone were to ask me my opinion, I think it's more fair play, it's more equitable and motivating to operate with a percentage. It is a conviction that can be challenged. Afterwards, often, the second question I am asked, at this stage, is: what is the percentage that should be put? Obviously, I don't have absolute truth. The point that must be kept in mind is that behind this percentage, there are a lot of disparities between concierge services. If you can try to take a quick look at what your competitors are offering to see what they include within this percentage, there are several things. For example, if you have a client, I'm going to tell you about a scenario where we take charge of the entire operation of the property, that is to say we don't just do the cleaning. , arrivals, departures, we do everything: cleaning, arrivals, departures, maybe even autonomous arrivals and departures, online marketing, online rental prices, etc. In a context like that, you have lots of small disparities in services between concierge services. You have concierge services, for example, who will take charge, within the percentage, of producing the welcome booklet. It's hard work, making the welcome booklet. So do you include it or not? For example, do your competitors include it or not? You also have the fact of having a channel manager. Today, when we are a concierge service, there is no debate, we need a channel manager. It is an essential tool. It's like cleaning, you can't do without a vacuum cleaner, for example. We can't pass the broom. So that's a basic standard. So, for the channel manager, if you have a client who already has their channel manager or who doesn't have one, are you going to include the channel manager settings or not? Are you going to be able to make announcements, if for example, this client does not yet have an announcement? Is this included in your service or not? All of these are aspects which can be very specific to what you are offering, and which must be put into perspective with the percentage. Now, if we had to answer this question: what are the percentages; having studied many different concierge services in terms of services offered and pricing, it is extremely broad, in fact. I was able to see, overall, in France, prices which go to the lowest, but I was really surprised, 15%, and it goes up to 30%, even I have 35% commissions which is requested by the concierge from the owners, once again, for the overall operation, really the operational and marketing. Now, the bulk of concierge services in general is still between 20 and 25%. The majority of concierge services are around these orders of magnitude. This is to really give you an idea of the orders of magnitude.
Now, about this percentage…
− Hello Axelle, welcome.
Regarding this percentage, there is also a small nuance to keep in mind. And likewise, if you study what your competitors are offering, ask the question. Or if it is someone who is a mystery shopper among your competitors, tell them to ask the question: what does this percentage apply to? This is crucial, because it can completely change the situation in terms of the amount of money we ask from the owner. The percentage, most of the time, applies to the amount of stays excluding commissions and cleaning. But there may be situations in which it is different. So ask the question? It is certain that if it is from a competitor who only asks for 15 or 20%, for example, but on the other hand, it applies to the stay, the cleaning and the amount of commissions, it applies to the total paid by the traveler, the percentage is low, but the application base is significant. So, in the end, here it is. Conversely, if it's someone who asks for a large percentage, but in fact, it only applies to the stay alone, and we clean the commissions, and we clean the household, the same, it's to put into perspective. Usually this is what happens. I am speaking to you in generalities, but in general, concierge services apply their percentage to the amount of the stay excluding cleaning and excluding commissions. This is a somewhat standard practice in the field.
There is also something to keep in mind when doing this: determine your own prices as a concierge. There is one thing to know, which is that according to your statutes, all of this will be modulated. I'll give you a concrete example. Either you are a real estate agent, or you have the real estate agent card, or you don't have it. If you have a real estate agent card, you are able to collect the sums of money paid by travelers, and you will only pay back to your owners the remaining sums due. Which means that you will collect the stay, you will collect the cleaning, and as a result, the platforms will ask you for their commissions. In these cases, it's very easy, I'll take a concrete example. You take 20% off single stays. The cleaning money comes back to you, and as a result, you pay back 80% of the stay value, excluding Airbnb and booking commissions. You pay 80% of the stay value excluding commissions to your owners. This is how it happens, it's very simple. Another situation, which in reality is the most common, is that when you create your seasonal rental concierge service, you are not necessarily a real estate agent, you do not necessarily have a real estate agent card. In these cases, we focus more on providing services. And in which case, the nuance to keep in mind is that it is your landlord who will receive all the amounts. The owner will receive the living room and the cleaning part. So there, if it is you who takes charge of the cleaning service, you must invoice him for the cleaning in order to be able to self-finance the cleaning, and invoice him for the 20 to 25% commission that you apply on the stay, cleaned of commissions. So, you have two-part billing on this part. That's it for the two scenarios that may apply to you depending on your situation.
Now, there is one last pitfall that I will share with you, which is also important to keep in mind on this aspect of pricing. How do I set my prices as a concierge? I sometimes observe wishes; afterwards, when you launch your concierge service, you often want to do lots of things. We want to do lots of performances so that it’s great. I even read people who said: “We really want to provide quality services at an affordable price. » That left me a little doubtful, because I said to myself: “So, you actually want to undersell yourself. You want to do something of high quality at low cost. For what ? It might just be a fair price, super high quality, at the price it’s worth. Why do you want to have a discount price for a high-end service? » I'm a little doubtful. But there is something, if you are at the stage of launching your concierge service, if you are at the beginning of this concierge activity, I really have a point of vigilance to share with you. And in fact, this is more advice from the entrepreneur that I am to you as an entrepreneur: try to start with a simple, agile solution, but one that works. It's very dangerous to start with 1,000 features, complexity, additional offers, things that you don't control. In my opinion, the best way to start your activity, your structure, is to operate with something simple, that you master to perfection, and that you know how to price, on which you know how to determine the right price. For what ? Because if you start with complexities, with ideas no matter how creative, you actually risk losing control. And what does losing control mean? That means making your customers dissatisfied. And so, that means running into your doom from the start. And that's because you want to, actually. So, for me, the most reasonable solution is not to ask questions from the start, to say to yourself: “If I offer them childcare equipment, household appliances, DIY equipment to rent , board games, and things like that. » That's good, but in fact, it's really injecting complexity into a profession which, I won't hide it from you, is already complex. A concierge service is something that is extremely time-consuming. Your number one performance indicator is: to what extent you will succeed in carrying out your service delivery in a qualitative manner, without spending your days and nights there? This is the number one indicator of the performance of a concierge service. It is: how do you manage to provide a good quality of service which makes the owners satisfied, which makes the travelers satisfied, without you working every day until one in the morning? Because it’s a job that is extremely, extremely, extremely time-consuming. So here, for me, is the number one tip: if you are launching your concierge service, make a basic version that you master from start to finish, that you execute to perfection, on which you have a price estimate that is fair, and which will satisfy your first customers. Then, subsequently, think about putting additional services and prices on these services. But don't confuse your mind at the beginning, when pricing your service by saying to yourself: "If I add this, how much will it count?" » For me, it's a bad calculation to start like that.
So, I'm going to finish by answering Romain's question, because I didn't answer the question. Oh, yes! I may have answered, all the same, by describing all that. “On my site, I display 20% commission. Should they be presented tax free or inclusive of tax? » That's true, I didn't answer. I've seen both ways work. In my opinion, and that is just a question of ethics, given that the 20% commission applies to tax inclusive, because it is the passenger price, and the passenger price is inclusive of tax. ; Earlier we said to ourselves "the price of the stay without commissions", it's inclusive of tax, it's not exclusive of taxes, so apply the 20% commission on this inclusive of tax, and act as if it were due excluding taxes, for me, ethically it's a bit average. This is what Airbnb does to us on our reservations every day, in fact, I encourage you to watch my video which talks about the change in Airbnb commission. We see all this, and we say to ourselves: “Airbnb is having fun. They do it to us a little bit backwards, as one might say. » So, we're not very happy when Airbnb does this to us. My conviction is that this is not a good way to manage your business, and that ethically, it is extremely confusing, and that's it. But I know some people do. Everyone sees noon at their door. We are all entrepreneurs, and we manage our activities as we see fit. If someone asked me my opinion, I would think that this is not a good way to do things. What seems more correct to me is to say: “My calculation basis is due including tax, so my 20% gives an amount including tax. » This is what we at J’poster Complet did. The 20% gives an amount including tax, well, so, for us it's not 20%, but this amount, I consider it in the invoicing as including tax, and so, I remove 20% to make the amount excluding taxes. “Should we invoice platform commissions before or after? " The same. That, I think I answered. For me, it's more the stay value cleaned of the platform commission, so as to have something that is completely fair, because in fact, the platform commission, your owner is not going to touch it. So, the same, it's not really fair play to charge him a commission on a sum of money which is already a burden for him, and which he is not going to touch.
I have questions. Thank you for the questions. I love it when you ask me questions like that during the live show. It's really really cool. It's Roman. Great, Romain, you're the one who asked me the question on YouTube. I just answered it, so listen, great.
− Axelle: “My landlord wants a direct payment from Airbnb, but with my 20% concierge service, housekeeping and laundry deducted. How do I get Airbnb to make two separate payments? »
You cannot make two separate payments. What I shared earlier is that you have to invoice, in fact, the cleaning and laundry service on the one hand, you can make the same invoice, and your percentage on the stay so that you reimburse the operational part, cleaning and laundry, and therefore, also invoice your provision of services to the concierge service. So, it is inevitably your owner who will receive everything, and you will therefore bill him for these two parts, in fact, of your activity.
− Romain: “Do you offer partnerships/services with revenue managers? »
Yes. This is what we do. We work for seven concierge services. Today, we are optimizing more than 200 properties at J'poster Complet. And in fact, we allow concierge services to subcontract, to integrate into their team a revenue manager I display Complete, who will, every week, monitor sales, maximize the filling and turnover of goods, and who will be in charge of supporting, in fact, the manager of the concierge service in monitoring the business, price changes, changes in length of stay, ensuring that we are on booking, that perhaps , you must participate in programs, see the cancellation conditions, etc. This is exactly our daily work. As I told you, this is what we do for seven concierge services. We optimize more than 200 properties every week. On that, if it’s something that interests you, Romain, don’t hesitate to write to me. The email is hello@jannoncecomplet.com. So, happy to discuss it. I will send you the link so that we can set up an appointment and see what we can do for your concierge service. So that is our core business of providing support to concierge managers.
− Romain: “Great, thank you very much. »
Great. Well, listen, please.
I hope this could have helped you. It's a bit of a long video. Before closing this video, I would like to take this opportunity to remind you that you currently have the possibility of registering for a top webinar that I am organizing very soon in a few days. I put the link in the comments of this video. This is a webinar that will actually help you learn how to double the profitability of your vacation rental business. I really worked hard on this webinar, because I realize that there are really more and more people who tell me that they are frustrated at not having the filling they want, not have the profitability they deserve, be fed up with not having the means to delegate. I told myself that we had to do something, and I put together this webinar with our best methods to double the profitability of your properties. So I can't wait to present it to you. Register just below in the links. It will be really nice to get together, to be together, to be able to talk about all that. You will ask all your questions, with great pleasure. It's a live webinar, obviously. So, there you go, register, and then if you also want to download the six mistakes not to make when you make your prices, I have also put the link to our private group. When you register in the private group, you receive this directly in your mailbox. So, same, feel free to click on all that. I was delighted to spend this time with you. I won't tell you until tomorrow, because today is Thursday, and my next live will take place on Sunday. But if you don't have anything planned for Sunday, well, see you on Sunday. So. Take care of yourself.