⭐ My unpopular idea about concierge cleaning fees
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Hello and welcome to the J'annonce Complet channel, the channel which helps seasonal rental owners who have a few properties, or asset managers. Whether you are a professional sublet, concierge or real estate agency, we help you become serene and ultra-profitable entrepreneurs.
Today we're going to talk about a topic, which is, I think, one of my least popular ideas. So that’s why I found it interesting to talk about it today. This will concern seasonal rental concierge services. So if you are a concierge or if you plan to create a concierge, stay with me. You will see, it will interest you. I think this idea really deserves my little rant. Is this really a rant? In any case, it's an unpopular idea, that's for sure, because I frankly see a majority of concierge services doing things differently. And as soon as we talk about it, I don't understand. We need to talk about it. So if you want, don't hesitate to write to me in comments. You will see, perhaps, that you will be completely against what I am about to say. It will be interesting to discuss it together. I'm delighted to see you again. When you arrive, don't hesitate to say hello. It's always a pleasure to be together. Can you confirm that you can hear me well? Because I tested a new microphone today. I think the connection works fine, but I tested a new mic.
− Hello to you, welcome.
− Hello, Alan, welcome. I hope you're well.
So there you have it, I have the impression that you can hear me. Otherwise, I think you would have said to me: “Élise, we can’t hear anything you’re saying. » So you can follow. Besides, for those who don't know, you can follow this live from our YouTube channel, from our Facebook group, and now from Instagram. So there you have it, don’t hesitate to subscribe. On YouTube, just subscribe with the bell to be alerted when I go live. And on the Facebook group, you can sign up for our Facebook group, the link is just below, actually, the video, in the comments. You will join a group of people who, like you, are looking to be serene and ultra-profitable seasonal entrepreneurs. And what's more, you receive a gift when you arrive. You receive the six mistakes not to make when you make your prices. So there you have it, don’t hesitate to do it.
− They confirm to me: “Yes, we hear”. Great !
− I have Diva, on Instagram, who tells me: “Yes, we can hear very well”
− Hello, Nicolas. Great, welcome.
− Hello, Marie. Welcome.
− Petit Potager says to me: “Hello”. Welcome to you.
− Hello, Mélanie, welcome.
− Hello Marie-Jo: “The connection is perfect”. Great !
I propose this subject to you on which my idea is very unpopular. I don't know what you will think of it, you will tell me, but in any case, my idea is not at all the one that is implemented by a majority of concierge services today. I'll explain. Often, when we speak with a concierge about the way they bill their service, the concierge will tell me: “I charge the percentage on the part of the stay and on the cleaning costs. I'm not going to charge anything. The only thing that is billed to owners is the amount that my service provider takes from me for the service. » The reasons given for this are reasons of transparency and honesty. There is a bit of a side: “I am a good entrepreneur, transparent and healthy. I only bill what is billed to me by the service provider. » And that, friends, that upsets me, and really, it's something that goes beyond me, in fact. I'm going to explain to you why I'm really fundamentally against that. In fact, it's something I don't understand at all. Why do a majority of concierge services, in fact, not make a margin on cleaning costs? Once again, I tell you, don't hesitate to write to me, to tell me the reasons that I might have forgotten, things, we debate them, it's interesting.
So in relation to that, for me, why is it really, in my opinion, not the right way to manage not to charge cleaning fees? Already, the notion of cleaning costs is in three parts: the first part is the “traveler fee”, that is to say what the traveler will simply pay when he reserves your apartment. This is the submerged layer of the iceberg. And for me, why is it the submerged layer of the iceberg? It is only a pricing convention, that is to say that you could quite say in your strategy of displaying prices, put them artificially very low, put them artificially very high: you could quite has policies like that, which are, in my opinion, nothing more than a commercial exercise in presenting our prices. Moreover, the price, at J'annonce Complet, for those who know us best, the price we work for, is a “traveler paid” price, that is to say stay + households included. Because it is the combination of these two parts that determines the price. And inside, the decomposition is just a matter of pricing strategy. So there you have it, that's the first: it's the paid traveler, which is just a convention for expressing the price, in fact.
The second, the amount for cleaning costs, is: how much do you charge the owners for the cleaning costs? So there, it's the same. It's just a convention. There, this is the price list that your company invoices the owner, and you can absolutely announce price lists. But there is one last step. And there, for me, we don't need to give this visibility to the owners, not because we're dressing things up, or not because we don't want to be honest, not at all, but because that it is the internal management of your company, as a business manager.
The last layer below is the price, which, in fact, is invoiced by your service provider. And directly giving something direct between the service provider and the owner, if I had to make a metaphor, since I'm thinking about a metaphor, what could I give as an example that illustrates the surprising side of that?
Excuse me, it was my new microphone that decided the live was over. He decides that it's over.
It's like when you go to your hairdresser to get your hair cut, depending on the hairdresser who does your hair, the price is different. And so, the director of the hair salon tells you: “Today, it's Élodie, and since she is less experienced, Élodie, your cut will cost you less. On the other hand, the day it will be Germain, Germain has ten years of experience, so the cut will cost you more. “It’s lunar!” When we present things like that, we say to ourselves: “Ah yes, that doesn’t hold water, it’s weird. » Because in fact, the hairdressing salon offers a service at a price, and afterward it is the manager of the hairdressing salon who manages the salaries, the training amounts of each person, etc. But we don't have to know how much each person is paid, how much each person asks for. For me it's exactly the same thing with this notion of billing for cleaning costs. We are a company, and as a result, as a company, we have a price scale for this type of service, and this is what we will announce to the owners, this is what we will bill them. But he does not need to know how much Pierre — Paul — Jacques charges us. Because what's more, the day when, it's really, for me, exactly the same example as the hair salon, which would seem super weird to everyone.
So that's it for the three levels on the subject of prices. And therefore, the point towards which we are going - and this is where, for me, it becomes even more of a heresy - when we say that a concierge invoices the cleaning costs to its owner at the amount invoiced by the service provider , what does that imply? This assumes that you, as a concierge manager, are working for free. In fact, basically, on the notion of cleaning costs, you consider and you send the message to the owners that you are not working at all. And this is where I also fundamentally disagree with it. For what ? Because tomorrow, the new service provider, who will train him? It's you! The service provider leaves, who recruits him? It's you! Who verifies the service provider’s work? Because obviously, trust does not exclude control, it can be virtuous to visit the apartments to ensure that everything complies with your company's quality standards. Who takes care of it? It's you! All of these things, in fact, are really a lot of work and time for you. It is you who guarantee the quality of the service provider's cleaning, it is you who are responsible in the event of a problem. In the event of a problem with the household, who will call the owner? It's you. So all these things take time, and for me, it's extremely unfair not to be paid for this part. The percentage part on the stay pays for everything else, because you also have everything else to manage. You also have announcements, marketing, pricing, responses to travelers, etc. So passing the message insidiously — see, I came up like a Swiss cuckoo. We noticed, Élise came up like a Swiss cuckoo. It's close to my heart, and then I don't understand — passing the message indirectly to the owners that it's something that doesn't require any work, and that you charge them at cost, for me, that's a bad idea. message. It's also not at all virtuous not to make a profit on the service you provide. Who works at cost? So there you have it, there’s this part.
And then the last step is that once again, indirectly, you reveal your internal organizational mess to the owners, and I'm not sure that this is the best perspective to give the owners on your internal functioning.
So don't hesitate, I will look at your messages in relation to that. Please let me know what you think of all this. I'm really looking forward to hearing from you about this. I understand that one might say, at first glance: “It makes my life easier”. But in fact, I think that it's a very false friend, that it doesn't ultimately provide the transparency that you might think it does, and that in fact, it's not shameful to invoice when you work. Because I remain convinced that for this subject of housekeeping, you work, and that all work deserves wages. I'm very excited today about the topic of the day.
− We have Alan who says: “Well, I completely agree, I proposed a customer contract with the commission calculated on the total amount that the traveler pays, but I did not have success within the team.”
Listen, Alan. I agree with you 1000%. We agree. For me, that's exactly it. Moreover, we can also compare this with what the Airbnb and booking platforms do. Many protest, saying: “Yes, but Airbnb and booking, they charge us for the stay and the cleaning.” Because in fact, it's just a pricing agreement, all that. That's why they do this. And I agree with that. Because otherwise, we could totally put huge households and very small stays, in the end, what counts is the paid traveler. So, that's why they do it. To me, this all makes a lot of sense. But I understand, once again, that we can feel it as an injustice, if we ourselves do not make money on the household. But in my opinion, that's what needs to be resolved, rather than criticizing operations like that, in my opinion.
− “I completely agree, I proposed a customer contract with the commission calculated on the total amount that the traveler pays, but it is not popular.”
Alan, that's a very good point. So, I want to clarify my point. My proposal is not to tell you: “The 20% concierge service must apply to the entire stay + cleaning”, because there, you will tell me: “Yes, but in fact, my owners, they, They also have contracts where they are offered 20% on the stay only. So I’m going to appear non-competitive.” So I understand that, and I agree with that. Owners will compare. They will say to themselves: “Well no, it’s not comparable.” What I propose to you is to keep the percentage on the stay as is, but that on the cleaning costs, the amount, the price scale that you establish for your company on the cleaning costs is not a cost price, whether the cleaning fees you charge are cleaning fees on which you have a slight margin. Obviously, I'm not telling you to worry about cleaning costs, but that the cleaning costs that you market to your owners be deducted from cleaning, on which you have made a slight margin, which is fair and equitable, and which simply allows you to pay for the fact that it is you who are in charge of checking the quality of the work, ensuring the continuity of the work, and ensuring recruitment. And that's worth money. So my idea is not to say: “Make 20% on stay + cleaning”, but rather to say: “Make 20% on the stay, and cleaning, offer your owners a price scale on which you have a slight margin.”.
− Maxime says to me: “Hello Élise.” Welcome, Maxime. Welcome, welcome.
− Amin said to me: “Hello Élise. Agree with this notion of margin, to be qualified depending on the type of property. For my part, I have employees, and it's simpler. Remember that providers make you vulnerable.”
Yes, that's a very good point. This could even be the subject of another video topic: should we have employees or service providers? It's a big subject. It’s two schools, eh! Some people have a preference one way or the other. You're right, it's a very big subject.
− Hello to you. I don't see your name on Facebook. “I'm joining your live stream. Gaëtan de Cassis” Welcome Gaëtan.
− “Thank you for this line of thought”. Please, with great pleasure.
− “Hello Élise. For a cleaning that costs you 20 euros with the service provider, how much do you make?
It will depend on a lot of things. I want to tell you, from my revenue management perspective, obviously, this margin rate will also be in relation to the price of the stay that you usually have in this apartment. What is the cost of cleaning that we can afford, while having a “traveler’s fee” that remains consistent? So I would actually have to look at the case, the city, and the apartment. It's difficult to say like that, but for a cleaning costing 20 euros, that already seems quite low to me, even if it's a studio. Even if you save even 25 euros, I'm sure that it won't make you stand out at all - once again, it all depends on your price of stay - but in any case, it seems quite realistic to make at least a few euros of margin on this price, which is quite low. You were lucky to find a service provider who gave you an attractive price.
I also look at the questions asked to me on Instagram. Just a moment.
− Welcome everyone, eh! Welcome, welcome.
− The Real House tells me: “I get a little back on the cleaning costs”
So. I think that this is really the most optimal operation, and once again, neither to lack transparency nor to defraud anyone. This is obviously not at all the optics, but more to restore justice to a situation which deserves it, because I am not going to repeat myself 30 times, but you are working, for me, on the subject of housekeeping, and It simply deserves a salary.
− Marie said to me: “There is responsibility too.”
Yes, exactly. That is, you are responsible if there is a problem. If the service provider does not come or does something wrong in the apartment, who is responsible? It's you! So this is where it also deserves compensation.
− The Real House tells me: “You are so right.”
Listen, thank you very much.
− You also tell me: “How to invoice, in this case, our commission, and how to invoice for the households, knowing that the cleaning fees that we receive from the platforms, we give back to the person in the household.”
So. So that's why, what I shared earlier, I think that to invoice, you have to make a percentage of the stay, as we always do. And this allows you to remain, from a visual point of view, as competitive as what other concierge services offer, and on cleaning: establish your own cleaning grid and have it included within this grid that you communicate to the owner, this small margin that you have to compensate you fairly for the work done.
− The Real House tells me: “For example, I charge 59 euros on the platforms, or another amount. I get back a few euros or more each time.”
Great. It's true that it's really work to train, but that's what training is: it's an incompressible amount of time which is essential, and which is the responsibility of your position, in fact. So this is a time to consider.
− On Facebook, people say to me: “Thank you.”
Listen, I hope you liked this Live. I really expected you to say, “No, but you don’t understand.” Well, I see that we all more or less agree, which surprises me a little, because it's true that commonly, among concierge services, I see many, many people who are not happy at all. on household costs. Maybe this video will, in fact, make things click for some of us. It's true that we can't think of everything, we have our heads in the handlebars. When you run a concierge service, there are 1,800 things to think about, and rest assured that I am fully aware of that. So if ever this video could have sparked something in relation to that, I would be delighted. In any case, don't hesitate to continue discussing in the comments of the video. I will go through that too to continue to answer you, with great pleasure. Don't forget to subscribe to the YouTube channel. Subscription + the bell to be alerted when I go live, and then if you want to receive your free bonus, well the same, the link is in the comments. So, don't hesitate to do it.
− They told me: “Great. Thank you, Élise, for your work and your always relevant advice.”
I thank you.
− Mélanie tells me: “I’m a renter, and I completely agree.”
That’s interesting, Mélanie. Thank you for your feedback. Because as a result, Mélanie is a rental company and an owner, and she finds that in perspective, compared to a concierge service, it makes sense. So, see, if you ever had a doubt, rest assured that there are many owners who will agree with you on this, and on the rightness and fairness of this idea. I'll see you Thursday, in two days, for another live on a completely different subject. I would be happy to see you again, on YouTube, on our Facebook group, and on Instagram. I say have a good day, take care of yourself and then see you Thursday.