Hey Paula, Garrett here! I own and operate Hygge <https://wearehygge.com>. 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 > -- 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.
