Becky, to add on to what Jerome said: A cowork space should never quote in square footage. Your numbers will just sound too high in the market if you do. You're providing so much more than just commercial real estate. You have high fixed costs (what you have to pay even if no one walks in the door) and low variable costs (coffee, printer paper). To be a little more precise, take your total fixed costs (include all your utilities, staff, rent, tax, etc.) Figure the percentage that is common area (that you can't make money off -- lobby, reception desk, break room, restrooms). This is ONLY for your calculation, never for quoting. Set a price for each of your spaces that totals at least double your fixed costs, since you'll have vacancies. You can, of course, massage the numbers to compare to market and any extras you can bring in (events, virtual office plans, services, etc.)
On Thursday, April 3, 2014 11:36:15 AM UTC-7, Blue Ocean Innovation Center, Bozeman Montana wrote: > > Jerome, > Thank you!!! I did them a favor as growing nonprofit originally and they > only had two people. They chose VIP membership to rent a desk. Then last > year, they moved into one office I had available. They have had a good > deal and I agree, we are charging too little. In moving forward, I wanted > to make sure my offer to them is based on market rates, accurate square > feet, and a formula that is recognized in the industry. I am reconfiguring > and hope to have this wrapped up by Monday. Really appreciate your sharing > what you use. Becky :-) > > > -- Visit this forum on the web at http://discuss.coworking.com --- You received this message because you are subscribed to the Google Groups "Coworking" group. To unsubscribe from this group and stop receiving emails from it, send an email to coworking+unsubscr...@googlegroups.com. For more options, visit https://groups.google.com/d/optout.
