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How do you really figure out how to price your venue? There are so many different things to think about. There’s size, capacity, and location. And then there are things like accessibility, what you can offer in terms of food and drink, and really, that’s just scratching the surface. Plus, it’s hard to even see what your competitors are charging for venue hire because most places don’t put that information on their website. It’s often only available on request.
That’s where our pricing tool comes in handy. The Venue Hire Pricing Tool pulls data from 25k venue prices in areas near your venue. As a result, you’ll get to see what you should be pricing your venue at. It also uses over 1 million data points to help you come up with a price that’s just right which means maximum booking revenue. Perhaps one of the best features is that it allows you to see what the competitive price would be. This is the price that would be slightly less expensive than the average so it in theory would attract more bookings.
The tool is super helpful but you should also understand the things that can influence the price of a venue as well as the different ways you can price your venue. We’ve created a helpful list for you to make it easier.
How To Price Your Venue
Things that May Influence the Price of Your Venue
1. Size
Properties vary in size and that will definitely influence the price you can ask. If you can only offer a small private room, you won’t be able to price it as high as a venue that can offer the entire space.
2. Capacity
Capacity can greatly vary from venue to venue. Some venues can accommodate anywhere between 10-100 people. Make sure you note whether or not the capacity will change when seated or standing. Some organisers may be looking for a place to have a sit down dinner where others may be looking for a place to mingle, which will change their capacity needs.
3. Location
Venues located in central London will be able to charge more than those that are located somewhere in the countryside this is because more centrally located venues will be able to charge premium prices for hire.
4. Offerings
Does your venue have a kitchen? Is there a sound system? Is it set up for meetings? If you have more to offer, you can charge more. For instance, a venue that has a full kitchen and catering options can charge more than one that doesn’t.
Ways to Price Your Venue
Aside from the usual things like size and capacity there are other things to think if you’re wondering how to price your venue. You have to decide if you’re only offering space or if you can offer more, like food and drinks.
1. Hire Fee
If you’re only offering the space, you’ll be asking for a hire fee. Many venues will have this as an option if people aren’t sure if they want food or drink. This doesn’t necessarily mean it’s not possible to get food or drink there. This is usually a fixed price and is often paid by the hour or by the day. It doesn’t include extras so you need to let organisers know if they are allowed to bring outside vendors in who can cater events.
2. Minimum Spend
Lots of venues offer minimum spend options to organisers. This means that you’ll have an agreed upon amount of money that will have to be spent. It can be spent on food and drink and is therefore a good option in some circumstances. This is a preferred option for a lot of organisers because they won’t have to spend extra on food and drinks. But don’t worry, your venue will receive the difference if minimum spend hasn’t been met.
3. Dry Hire
If you’re a venue that’s essentially a blank slate, this is the route you’ll want to take. You’ll be able to charge for the space alone because you can’t offer anything else to the organiser. The organiser is then responsible for hiring everything else out themselves.
4. Daily Delegate Rate
Meeting spaces and corporate venues will want to create a daily delegate rate (DDR) because it will make it easier for corporate organisers. This is a complete meeting package that will be a fixed price per person. Venue hire, coffee, and basic equipment that may be needed during a conference like a screen or projector are included.
Don’t forget to use our Venue Hire Pricing Tool to help you figure out how to price your venue.
