The Demand Solutions Blog

Evaluating comps when pricing

Posted by Donald Davidoff on Mar 19, 2013 10:44:00 AM

Understanding your competitive set when pricing is obviously important. If you’re constantly at low exposure, you can push pricing and ignore whatever comps are doing. But if your exposure ever goes up, you’ll want to make sure that you’re not priced out of the market such that you can’t reduce exposure.

In my experience, I’ve seen two “camps” on how to approach this problem. The first tries to build the comparison from the ground up. We audit our community against the comp on a variety of things—age, community amenities, unit size, unit type amenities (balconies, fireplaces, kitchen and bath finishes, etc.), and record these in (usually a large) spread sheet. $15 for a balcony, $3 for crown molding, $10 for a fireplace, ….  A lot of work, and a lot of alleged precision.

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Topics: Revenue Management, apartment, apartment operations, apartment pricing, competitor shopping