What’s up guys, in today’s video, we’re going to be talking about pricing software. This is one of the really, really awesome tools that anyone who has a property on Airbnb, whether you’re managing it for other people, you own it yourself or just a spare bedroom, your place or an investment property, no matter what using a pricing automation software can be a really great tool to just make more money on that property. Now, one of the things I love about strategies that help you to just increase the revenue on your property is that it’s such easy low hanging fruit, you don’t have to go and buy another property or get another management client, you can just make a few small tweaks that will add more dollars in your bank account. So anything that can help you to do that is a really big win for me. Now, if you’re not new to the channel, if you’ve actually been here and watch other videos, you’ll know that I’m a little bit sceptical and have been for a number of years about pricing automation software’s and that really hasn’t changed, there’s a few things I’m going to point out in this video about how to use any one of these tools effectively, and when you really should avoid them entirely. That being said, I am going to give my recommendation in this video for one pricing software in particular that I have started using and that I really like and enjoy because I want to share what I’m doing that’s been working with you guys here on the channel. Now before I forget, if you are here and you liked the video, or you want to see more videos like this, hit the like button hit the subscribe button, it really does help me out with growing the channel. Now let’s dive in. And let’s start talking about before we go into exactly which software I recommend, I really want to lay some groundwork for when you should and shouldn’t use a pricing software altogether. Because I’m a firm believer that if you use any pricing software, even the best one at the wrong time, it’s ultimately going to lead to a lot more headache, and it’s going to do a lot more harm than good. I like to use the analogy of a Formula One racecar. If you put someone who doesn’t know how to drive well, in a Formula One racecar, all they’re going to do is crash and burn. So you have to make sure that you actually understand the fundamentals of how to drive and become a really great driver before you use one of these really great tools. So that being said, Here’s my recommendation. Anytime that you’re new to Airbnb or new to short term rentals, and you’re just getting started. Whether that is overall or just with one new property, I recommend pricing manually. Here’s why. When you first get started on Airbnb, you don’t really have a good understanding of the overall pricing strategy, when to increase rates when to decrease them. And you need to develop a proper data driven pricing strategy, so that you understand how pricing works. Having that understanding of how pricing works and how to optimise your rates is going to allow you to give the software tool the right inputs and parameters in order for it to be successful. If you just let it do its thing, it’s going to do a pretty bad job in my experience. And so I recommend having that firm understanding. First, there’s all kinds of other videos on this channel where we talk about how to develop a data driven pricing strategy and some of the tools that we’ve built for our own internal use, like our target occupancy rate tracking spreadsheet, that are really, really helpful. Again, our free trainings that are linked down below, we’re going to go over all of that as well. But that is where I recommend starting out. Now I also recommend that even if you are a seasoned Airbnb host or property manager or investor, if you’re starting with a brand new property, I recommend getting at least a couple of months of performance under your belt before you actually take that over to a pricing software. Again, the reason for this is because every property is a little bit unique. Not every property is going to have the exact same overall pricing strategy. And the amount of demand for a property is going to be based on a whole bunch of different factors, not the least of which is the specific desirability of that property based on how it looks, what amenities it has. And although you can pull really strong comps in a lot of situations, for some properties, there’s just a unique factor to them. That’s going to make it so that you can only get about 80% of the way there to understanding exactly how this property should be priced. And so by managing the pricing yourself and keeping a close eye on it over the first couple of months, you can really fine tune and get a crystal clear idea of exactly how this property will perform relative to other competitors nearby. Now I would say that if you have a pretty standard run of the mill property, like let’s say a one bedroom condo, condo downtown, you probably don’t need to do this because there’s not going to be anything not unique or different about it compared to the other one bedroom condos. But when you have a vacation home that’s got its own aesthetic. It’s got different amenities, different combination of amenities and other properties nearby that I really do recommend doing this for a new property that you’re starting out with. That being said, once you’ve got things dialled in, and you’ve been able to really fine tune exactly how to get the property booked up to the occupancy rates that you’re aiming for, at the price points that you’re aiming for, and generating the amount of revenue that you want to be in other words, that the property is fully optimised. I think that these tools these pricing automation tools are a really great way to automate the ongoing maintenance of that. So again, just to be clear here, I’m not saying that these tools are really great for optimising your pricing. They can be a little bit better because they’re constantly working 24/7, getting that last little 1%. But if you’re at 80%, they’re not going to jump you up to 100. In my experience, you have to get to about 95%. That’s where you’re going to want to put the software in place. So you can automate it. And it’s going to do a really good job of skeet squeaking that extra called percentage out of the listing, because it can constantly make fluctuations, whereas you’re probably only going to be adjusting your prices realistically, maybe once a week. And so, pricing automation software is great for that, because where you then don’t have to go in and constantly monitor things and manage it and constantly making updates, the software can take care of all that for you. And so if you look at the market, there are really three main different software companies out there that do essentially this, and those will be price labs, wheelhouse and beyond pricing. Now I’ve looked into all three of them. And I don’t have anything too much against wheelhouse or beyond. But my personal favourite is price labs. And I can share a few reasons why. Guys just want to take a quick break here to say that for those of you watching, who want to build cashflow, and long term wealth by purchasing Airbnb and short term rental properties, there’s a link in the description right down below for a free training that will walk you through my exact strategy for investing successfully in Airbnb. Now, if you’re not ready to actually buy properties, and you want to get started managing other people’s properties on Airbnb the same way I got started and build a full time income managing other people’s properties. There’s actually another free training link in the description down below as well, there’ll be a really great fit for you. So whether you want to invest in short term rental properties and actually build amazing cash flow and long term wealth by acquiring the assets, buying the properties themselves, or you’re looking to earn a full time income managing other people’s properties on Airbnb, we’ve got some awesome trainings that are linked in the description down below, it’ll definitely help you out. When you sign up for the trainings, we’re also going to send you a few other tools and resources completely for free just to help you get started. Again, the links to sign up are in the description down below. And both trainings and all the tools are completely free. So make sure to register for the trainings, links in the description down below. The number one reason for me is that like I said, in order to have that software really work and do its best possible thing for you, you need to be able to give it the right inputs. Price labs, from what I’ve seen allows you to give the best form of inputs to their software. So it ends up creating a really, really good robust strategy that’s going to actually maximise your pricing. Now, I do think that if you’re less experienced with pricing, and you’re trying to kind of figure things out, then there isn’t attractiveness to something like wheelhouse or beyond pricing, it’s not going to do as good of a job in my experience of actually optimising the prices of your unit. But it is going to be a little bit less technical, and therefore more user friendly, there’s just less settings to tweak. Whereas for me, I personally like the control of being able to tweak different settings. And I really also like the way that their software for price Labs is actually set up out of the box. And all the adjustments, they allow you to make a really intuitive once you actually understand pricing. So I think for that reason alone, it really does, you know, beat out the other competitors in the market. So that’s personally my number one reason for why like price labs, additionally to that I just really liked the metrics that it gives you. There’s all kinds of cool things. And we’ll pop something up on the screen here that you can see with price labs that allow you to see exactly how you’re pacing relative to your competitors, you can see what amenities you should add based on the ones that are most popular and the most demand. But with the least supply. There’s all kinds of different cool tools in the backend of price labs that allow you to just improve the performance of your property overall and track it relative to competitors. So I find that that visibility gives me almost a superpower when it comes to pricing my property, because I can make sure that I’m beating my competitors every single step of the way. Now the other thing that I really, really like is the market dashboard, the market dashboard allows me to look at, you know a number of properties nearby to mine and see all kinds of different metrics on them. It’s kind of like a crossover between a pricing software and the data that you get from a site like air DNA. And I don’t see it as a flat out replacement for air DNA. And I’ll go over a few reasons why in a different video maybe. But I do think it’s a really great complement to having that data. It just gives you more data to make better decisions on your property. When it comes to adding amenities, different pricing strategies, you might want to use all kinds of fun stuff. And so I personally chose to go with price labs after reviewing the different options because I liked the customizability of it. I like the visibility and I like the data. And ultimately, that’s personally why I’m choosing a data pricing software is I want to make sure that I can optimise my pricing. I want to make sure I can customise it the way that I want. I want to make sure I actually understand what’s going on there. I don’t want to leave it just up to the software to do its thing. Because when I understand it, it means that I can give inputs that are going to augment the performance of it. And I personally really really love having the extra data so I can make better decisions in the future on what properties to buy watermain To add all kinds of stuff like that, there’s going to be a link in the description down below for you to check out price labs as well. I think you’re gonna get some some money off if you sign up with the link there. So full disclosure, I am being compensated affiliate with price labs, but I wouldn’t be recommending it if I weren’t using it myself as well. But absolutely do your own due diligence when picking the software’s check them out. Like I said, the main ones out there beyond wheelhouse and price labs. And I think if you sign up for the link in description down below, you’ll get something like $10 off of your your first month, which also another benefit of price Labs is that they price based on a flat monthly rate, it’s not a percentage of your revenue. So it ends up being really really affordable. I think it’s something like 10 or $20 a month per property. So it basically pays for itself very, very easily. So again, let me know your comments if you have different experiences if there’s a different pricing software that you like, let me know why I’m eager to hear about it. If you liked this video, hit the thumbs up hit the like button. Make sure you subscribe to the channel if you’re not already. I hope you enjoyed this video. Hope you got lots of value from it. I hope it helped you in your decision making process and in your hosting process overall. With all that said, Have a great rest of your day and I’ll see you in the next video.