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Key to your pricing strategy and to the operation of your business is going to be benchmarking and forecasting a pricing data. There are various things that you want to keep track of. As part of the business, that’s going to help you make decisions when it comes to your pricing. And here are some of these kind of things. You’re going to be wanting to look at your competition. You want to be benchmarking the historic prices of properties that are similar to yours on these various platforms. And you ought be benchmarking those prices against what the supply and the demand was at that particular time. This is to help you build up a forecasting model. So, you know, we have a better idea of what you can charge for a particular property at a particular time based upon the amount of supply that’s in the market competition and the amount of demand in the market. Are you people looking to rent properties to supply in this case? Is the number of properties there are available that are equivalently competitive? So if you’ve got a two bed flat that’s primarily aimed at tourists in the central London. What other two bed flats in central London are available to be rented at the same time? Demand is the number of visitors for a given season or a given event or a given day or given week. Another thing you’re going to be wanting to look out for that’s going to help with your forecasting is news news events. You will be looking for news of upcoming events in the local area, be it infrastructure projects, be at carnivals, touristy kind of things. There might be business events or business news. You will be looking to see if there’s going to be any change to travelling. So they’re going to open a new station and they’re going to close one down. Is there any change to the business landscape in the local area? It’s going to have an impact on demand for the property. Is it going to be anything more national basis? Is there going to be tax relief added or removed? All of these things are gonna have an impact on the demand for your property, either up or down. And also the price that you’ll be able to get for the property. Let’s say you’re gonna be wanting to look at historic data. You want to benchmark. As much of the daily historic prices as you can get your hands on, the more data you’ve got. The more raw material you got to work with to help in your feature benchmarking, forecasting, you want to be collecting data on similar properties. So these are similar properties or in similar places, similar number of rooms, similar features, appealing to the similar customers. Ideally, you want three years worth of data. Again, the more data you can have, the better. The property market is very seasonal in nature. So you want to make sure that you have whole seasons captured, multiple whole seasons capture. So three years is a good limit. Time for. And you want to make sure that you adjust all of your pricing by inflation to give you a baseline. So if you’ve got three year old pricing information, that’s the price. Three years ago. So if you want to use that information to influence your decision making in the now, you need to adjust those prices by inflation. The inflation difference between three years ago and now in order to make those calculations correct. How are you going to do this? How are you going to collect this information and do your benchmarking, et cetera? Well, you want to start by a spreadsheet and just collecting your own data. Just grab it off of Zoopla. Grab it off of the platforms, whatever platforms you own and use. Get this information and start recording it manually only because it’s important that you get your head around these figures. You need to know these figures and you need to realise the importance of taking out these figures. So starting money is a good place to start. Once you get the ball rolling, you can purchase historical data. There’s, for example, there’s a company out there called Air DNA, which offers some of this kind of information. And there are other places you can purchase it from. But I would use that to add to the data that you’ve got rather than just purely going out there and purchasing it. And as I’ve said, just to emphasise the point, this is the this data is the lifeblood of your business. This is the information which will allow you to outcompete your competition, to optimise your pricing, to make the most money and make your business more successful. This is the key place where you’re going to win or lose. So you need this data. You need to have a process for collecting this data accurately and using this data to the best of your abilities.
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