Top 6 Lead Generation Sources

Becky Simi is a CloudVO Partner and draws from her years of sales experience to author this white paper which discusses the most effective lead generation sources for operators.  As Managing Partner for on-demand office provider Pacific Workplaces, Becky has a leadership role in developing best sales practices while she oversees operations for their San Francisco/Peninsula region.  She also implements ongoing training webinars to keep associates informed of the latest sales trends specific to the shared workspace industry.

The perspectives in this report are meant to provide operators with resources they may not have already explored when it comes to generating leads for their business.  Topics like how to optimize your own marketing efforts are discussed, as well as the strategic benefit of partnering with reputable value-added resellers and network promoters.   We should also mention that the best lead sources offered in this white paper are not necessarily an exhaustive list of effective methods.  It reflects the experiences of Pacific Workplaces Principals in a part of the world that may not be fully representative of all others, although the world is becoming an increasingly small place; we hope our experiences may be valuable to many.

lead-generation-image

 

CloudVO offers this white paper as a resource to CloudVO partners and friends in the industry.  If you are a CloudVO partner, feel free to call Becky for more discussion, anytime.

For more information specific to workspace providers, check out our LinkedIn Workplace-as-a-Service™ discussion group and join the conversation.


Top 6 lead generation sources

By Becky Simi, Managing Partner at Pacific Workplaces, & the Pac team

In this article I will share the lead generation sources that we found worth our time and effort, as seen from my involvement with Pacific Workplaces, overseeing three business centers and one coworking place in the San Francisco Bay Area. I will share how some of these lead generation sources have changed over time. So in no particular order, here are our top 6 lead generation sources:
1. Your own website and local marketing efforts.
Your own Website and local marketing efforts should always be your #1 source of lead generation. Make sure you follow Google guidelines for optimal organic ranking of your website, via careful selection of URLs for your key pages, meaningful meta titles, good and relevant content, blog, etc. Index your site with Google and make sure you are listed with Google Places. Consult the GWA library for help on SEO and SEM topics.

If your website is not listed organically on the first page of Google for relevant search terms like “office space in [cityname]”, “[cityname] virtual office”, “coworking in [cityname]”, consider retaining the services of a reputable SEO specialist. It may cost you anywhere between $500 to $2,000 per month, but if you own a single location outside of a large city, you may just pay a few hours of expertise from an SEO consultant once and achieve good results. You can also educate yourself by reading the helpful Google literature on the subject. Also make sure your website is listed on the GWA directory, which works as a helpful backlink for SEO purposes too. No need to spend a fortune in SEO support if you can achieve top 3 organic ranking on your own!

If not done yet, we highly recommend to quickly upgrade your website with its own e-commerce capabilities, so that you can sell day passes, meeting room bookings, or virtual offices online. Some of the platforms dedicated to our industry are designed to easily integrate e-commerce capabilities with your own website.

At Pacific Workplaces, we use the WUN Systems’ HappyDesk platform and are able to make many sales online that way, often outside of business hours. We’ll typically sell a couple of Virtual Office plans in each location each month, and multiple meeting room bookings each week from walk-in clients who transact and pay with their credit card online. Adding that kind of e-commerce capability is inexpensive. It’s easy. And, it works!

2. Use Social Media, Yelp in particular, and other networking venues.
How to optimize social media presence is outside the scope of this article but social media should also be an important lead generation source. It’s all about creating powerful online word-of-mouth. Refer to the GWA library on how to do this effectively but let me emphasize that proper listing on Yelp is important. You may also consider advertising on Yelp. We have done this with great results, at a cost roughly similar to Pay Per Click on Google. What’s important to keep in mind here is that an increasingly large number of users search directly on Yelp and bypass Google.

Five to 10 years ago, local networking efforts, such as attending local chamber of commerce events, or hosting events designed to attract traditional brokers in our centers, were critical. We found that “virtual networking” is now much more effective and we spend more time focusing on generating activities on Yelp (via check-in, reviews, and outright conversations) and with other social media than with traditional networking. You cannot do it all: something has to give.

3. List with Web Brokers active in your area.
Web brokers market your location and services on the web, locally and globally, under their brand.

Only when a lead is identified do they inform you, and at the same time release your full information to the lead. Once the prospect is referred to you, it is up to you to close the sale. You keep ownership of the end-user.

Web brokers typically receive a 10% commission for the length of the contract up to 12 months (including renewals). It does not cost anything to list with a web broker, and a 10% commission is very reasonable even though they do a minimal amount of work. If the web broker is active in your area and you don’t list with them, the leads will go to your competitors. Web brokers represented close to 25% of our leads 10 years ago. Nowadays they represent less than 2%. So we are not dependent on Web brokers but we continue to list with the two or three that are active in our area: Instant Offices, SOS (Search Office Space), and OfficeList. Web brokers tend to focus on Full-Time offices. Day Passes, Meeting Rooms bookings, or Virtual Offices, are rarely marketed by web brokers because a 10% commission is not sufficient to make value-adding marketing efforts worthwhile, given the lower revenue these services generate.

4. List with Reputable Value Added Resellers.
Value Added Resellers resell and augment your services, locally and globally, under their brand. For example, they will resell your local mail services but add to it their own layers of service, such as live phone answering, live chat support, concierge services, and corporate account services. They also typically have stronger fraud screening and CMRAcompliance capabilities than we and other independent operators have, an important consideration with Virtual Offices.

The Value Added Reseller is your client. He/she pays your bill. The end-user of your services is the Reseller’s client.

Resellers can greatly expand your market reach and e-commerce capabilities and are in a better position to reach out-of-the-area individual users and corporate accounts that you would be unlikely to reach on your own.

They take care of the revenue collection and will pay you a discounted price, typically 25% (although we have seen a range of 10% to 50%). Value Added Resellers worth considering include DavinciVirtual and CloudVO.com. CloudVO (a sister company to Pacific Workplaces) in turn populates your information on their e-commerce sites

CloudVirtualOffice.com, CloudMeetingRooms.com, and CloudTouchdown websites. MeetingRooms.com is also a Value Added Reseller particularly active in Europe and worth considering. Unlike the others, who are listing only independent operators so far, MeetingRooms.com lists Regus meeting rooms as well.

Finally, we will mention Breather, as an interesting breed of Value Added Reseller. They provide access to the end-users to a network of meeting rooms that all share the same design characteristics, including Breather’s own furniture (and almost always a couch!). Their conference rooms have the same feel everywhere but are hosted in shared office space. Breather rents the room from the operators, typically furnish it and book it to the end-users who remain Breather’s clients. It’s an attractive, but also expensive, business model and we will be interested to see how it evolves over time.

Liquidspace also shares common characteristics with Value Added Resellers but we categorized them as “Marketplace providers”.

5. List with Reputable Network Promoters.
Network Promoters promote large networks of locations under both your brand and their brand. Examples include CloudVO.com that promotes their CloudTouchdown network for touchdown at day offices and coworking spaces anywhere in the network on a subscription basis, and Copass that is developing a similar formula focused on coworking spaces globally.

Preferred Office Network is to my knowledge the strongest network in the US that focuses on selling Full-Time Offices via a meaningful corporate account capability offering larger corporations with multi-location needs. Preferred Office Network is a credible alternative to Regus for many corporate managers.

The main benefit of Network Promoters is that they evangelize a network with defined characteristics (for example Amenity-rich professional business centers for Preferred Office Network) while providing a single point of contact and a single point of billing, a critical feature for corporate accounts that have multi-location needs. They will invoice the client and pay you the discounted price agreed upon in advance, typically 10% for full-time offices (but on-going, unlike in the web broker model) and 25% for day office or meeting room usage. They share similar characteristics with Value Added Resellers in that they are the operator’s clients and pay you for the usage of your services made by end-users.

We see interesting start-ups emerging here and there going after this kind of concept, GetCroissant for example in New York City is a Network Promoter in the coworking arena.

6. List with Marketplace providers that achieve scale.
Marketplace providers also share common characteristics with ValueAdded Resellers but their mission is to evangelize the entire on-demand office space industry, not just a sub-segment of it, and to list venues on their platform where a comprehensive set of workspaces can be booked or purchased online (meeting rooms, coworking seats, even full-time offices).

The main difference with Network Promoters or Value Added Resellers is that their mission is comprehensive with respect to the industry, listing coffee shops alongside business centers, coworking places, hotels and any places with on-demand or even free conference rooms. In contrast, Network Promoters segregate the industry by promoting a particular site of locations that share common characteristics (e.g. professional, private rooms, staffed, in high-quality business buildings, etc.).

The marketplace that has achieved the most meaningful scale to-date, and the only one Pacific Workplaces lists with today, is Liquidspace. The discount/commission they retain varies according to whether a user is new or is a repeat customer. In our experience the weighted average discount/commission of the marketplace turns out to be in the 30-35% range, which is acceptable given the additional marketing reach they provide us and how effective the platform has been.


About CloudVO ™

CloudVO is the umbrella brand of Cloud Officing Corp, headquartered in San Francisco, California. CloudVO’s mission is to provide comprehensive virtual office, coworking and meeting room solutions to professionals under a Workplace-as-a-Service™ model. CloudVO operates the  CloudMeetingRooms.com  and  CloudVirtualOffice.com  e-commerce sites and grants preferential access to day offices, coworking space, and professional meeting rooms at close to 600 locations worldwide for distributed workers on a subscription or a pay-per-use basis.

What Workspace Providers Should Know About Phone Answering

Live phone answering is still good business for providers in the shared workspace industry as seen on our recent webinar “Phone Answering Best Practices and Outsourcing.” To ensure their answering services are top notch, providers can outsource to CloudAnswering, but whether they outsource or not, there are operational factors every provider should implement to ensure the best customer service to members.

Remove Phone Answering From the Front Desk
We’ve all come to expect phone answering for any business to take place at the front desk, but for a shared workspace provider this is a mistake.  Call volume is a drain on time and resources, and your front desk staff’s priority should be to ensure the needs of members and guests are taken care of real-time. How can this be done if she is also responsible for processing incoming calls?  If a member has a pressing need while front desk staff is answering phones for dozens of businesses, the reality is customer service quality will suffer.

livephoneanswering

So what can be done?  Operators should centralize call answering to a specific back office area other than the front lobby.  Centralization is important specifically for operators with five or more locations since there is enough call volume to justify the investment. This could mean converting under-utilized space in the back of one of your centers for the purposes of phone answering, or even turning an empty office into your call center for the entire portfolio. For operators with less than five locations, centralization does not make sense due to lack of critical mass, and outsourcing would be the best option. The takeaway here is whatever needs to be done in order to remove call answering from the front desk should be high on the priority list.

Re-deployment of Front Desk Responsibilities
Once your front desk staff no longer has to deal with answering calls, their focus should be on providing exceptional customer service to members and guests.  Your front desk staff can now oversee everything from managing busy meeting rooms, to troubleshooting IT issues, even responding to sales inquiries and providing tours of the space if necessary.

Planning networking events, mixers and social activities which curate the community is also a better way to make use of front desk time.  Establishing a community in your workplace is essential to the success of a provider’s business.  None of the essential elevated tasks above would be possible if phone answering operations aren’t relocated.

In this era of Google Voice and text messaging, many question whether live call answering is still relevant, but while technology has made a difference on the way people communicate, it can’t always replace a human voice answering incoming calls.  There is a segment of our member base such as attorneys, consultants, and sales reps where the human touch is critical and that is not well served by an automated voice mail.

For more resources specific to workspace providers, check out our LinkedIn Workplace-as-a-Service™ discussion group and join the conversation.


About CloudVO ™

CloudVO is the umbrella brand of Cloud Officing Corp, headquartered in San Francisco, California. CloudVO’s mission is to provide comprehensive virtual office, coworking and meeting room solutions to professionals under a Workplace-as-a-Service™ model. CloudVO operates the CloudMeetingRooms.com and CloudVirtualOffice.com e-commerce sites and grants preferential access to day offices, coworking space, and professional meeting rooms at close to 500 locations worldwide for distributed workers on a subscription or a pay-per-use basis.

Webinar: Phone Answering Best Practices & Outsourcing

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Phone Answering Best Practices & Outsourcing

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In this free webinar, Laurent, Kassandra, and Kim share Best Practices for Phone Answering Services, as well as the economics of outsourcing with CloudVO™. The main areas of focus include:

  • Best practices for in-center phone answering
  • How to upsell phone answering services – What revenue?
  • Economics of phone answering – What is the cost? How much margin?
  • Online sales and Provisioning
  • Data from Pacific Workplaces & CloudVO™
Thank you!

When to Charge (or not) for Meeting Rooms?

Update: 2019 Meeting Room White Paper is now available.

One of the key elements of the value proposition of shared office spaces is to provide collaborative space and meeting rooms to their members. This blog post will explore what we believe are the best practices for workspace providers to monetize access to meeting space.

Do Not Charge for Informal Collaborative Space on a Pay-Per-Use Basis

One of the tenets of coworking is to build a closely knit community of professionals that often interact in unplanned ways to maximize serendipity. Although convenience and privacy are more central to the value proposition of serviced offices, community curation is critical to their success as well. Note that in this article, we are using the terms “Serviced Office” and “Business Center” interchangeably.

Semi-private informal meeting spaces in the coworking area and/or by the break room of a business center are very desirable amenities to encourage instantaneous meetings without encroaching on the privacy of other members doing concentrated work.

Trying to monetize this kind of informal space (e.g. comfy couch, chairs, stools, or even meeting tables in open space) on a pay-per-use basis would be an undesirable barrier to accomplishing community bonding goals, not to mention in some cases, life changing serendipitous moments. Access to that kind of space should be part of the privilege of membership. If the space is heavily used, then day pass and virtual office users may be barred access from it, or else be charged a premium for it, as they are only peripherally involved with the community.

However, in general we like to discourage access restrictions to this kind of space, even to visitors, as today’s virtual office or meeting room user may become tomorrow’s full time member. In our experience, few virtual office or “walk in” visitors turn out to be heavy users of that kind of informal collaborative space anyway.

Charge Everyone for Access to Formal Private Meeting Rooms

Some operators include several hours of access to private meeting rooms as part of the privilege of membership. This is especially true for private office users whose monthly rent or membership fees are considerably higher than the virtual office or coworking passes.

Five to ten years ago, it was a common practice for serviced office space operators to think that the primary function of the meeting room was to serve full time office clients. Many provided a generous package of free access to the meeting rooms, 16 hours per month and sometimes more.

That practice is disappearing, and most operators are monetizing their day offices and meeting rooms aggressively. They learned that the contribution of a healthy meeting room business can be very significant to their business model both financially and also in terms of filling the pipeline of future full time members.

CloudVO Meeting Room Utilization by Type of Users
CloudVO Meeting Room Utilization by Type of Users

We believe that the best practice for operators is to offer no more than 4 hours of free access to formal meeting rooms as part of a full time user package. Many provide no free hours at all but offer meaningful discounts to full time members as a privilege of membership (e.g. 10-25%). Regus provides full time clients with free access to meeting rooms that is a function of how much money the clients spend every month. This typically accounts for just 1 or 2 free hours of a medium size meeting room. Pacific Workplaces (based in Northern California, with 15 locations) offer 4 hours of free access to their standard full time office members, a 50% reduction from what they provided less than 5 years ago and a 75% reduction from 10 years ago.

This trend towards charging for usage of private meeting room while not charging for the usage of informal meeting space makes sense when realizing that the ‘utility’ associated with a formal professional meeting is typically significantly higher than the ‘utility’ associated with informal meeting space. Another way to say this is that there is so much invested in a formal meeting that gathers 5, 6 or more people, in terms of everyone’s opportunity cost to be in the meeting, that the cost of the actual meeting space becomes a small % of the collective investment made to attend the meeting.

Think of a sales pitch or a fund raising pitch to busy third parties that cannot afford to be encumbered by technology glitches or a beer bust breaking out in the middle of the meeting.

Hence it makes sense for the operator to reflect that value in how he or she charges for the space, and to get a significant ROI on that meeting room space investment.

The space charged on a pay-per-use basis needs to be private, professional, with plenty of bandwidth, wireless access, and standard presentation equipment (flat screen with Apple TV or HDMI cable). That, along with the dedication of the meeting room space, is an expensive investment by the operator. The good news is, with the proper plan, that space should be the most profitable line of business for the operator as shown in the Expected Revenue Graph per meeting room size we explained in a a recent webinar on meeting room pricing.

Potential Revenue per Meeting Room Type - US Average
Potential Revenue per Room Type – US Average

Provide Meeting Room Choices

In that same webinar, we highlighted the importance of having several meeting rooms of different sizes in your inventory (1 or 2 day offices, 1 or 2 medium size rooms and one large room as a minimum). We touched on regional differences. We also explained how distributors, resellers, and other partners can quickly help develop a meeting room business with new, unique visitors, generating very high revenue per square foot and desirable traffic to also feed new memberships. Please refer to the webinar and to the associated White Paper on meeting room pricing and check our Resource Center with other similar goodies for operators.

Bundle Plans

Monetization of meeting room can come in several ways, including charging hourly rates, with or without discounts, deploying an e-commerce platform on your web site to enable real time booking of meeting rooms and charging user credit cards, leveraging partners like CloudMeetingRooms.com to expand your marketing reach, but also by providing well thought out bundles of meeting room hours.

Bundles should always be priced as a function of expected usage, in a statistical sense, based on data analysis of your pool of meeting room users. Hours should expire every month. If the operator follows these two principles well, the bundles can be priced at very attractive levels, and with minimum advertising, the meeting room revenue will increase quickly.

If you are starting your operation, use the CloudVO data as a meaningful starting point. For example, our experience of the average use of a 16-hour bundle (with no carry over of unused hours) is 3.9 hours/month when the bundle is an add-on to an existing package (e.g. Mail plan or Full time user); and 6.9 when it is a stand alone package. Price your bundles accordingly, not as if everyone were going to use all their hours. They don’t, and the light users typically more than pay for the occasional heavy user. Most people end up consuming fewer hours than they initially projected. This is particularly true if you package a 16-hour bundle with a 3-month minimum contract, which we recommend.

Upload your center information on our CloudVO portal, and we will automatically populate our e-commerce sites, CloudVirtualOffice.com and CloudMeetingRooms.com, with your offering. Join LinkedIn Workspace-as-a-Service ™ group for more data driven discussions on our industry.


About CloudVO ™
CloudVO is the umbrella brand of Cloud Officing Corp, headquartered in San Francisco, California. CloudVO’s mission is to provide comprehensive virtual office, coworking and meeting room solutions to professionals under a Workplace-as-a-Service ™ model. CloudVO operates the CloudMeetingRooms.com and CloudVirtualOffice.com e-commerce sites and grants preferential access to day offices, coworking space, and professional meeting rooms at close to 500 locations worldwide for distributed workers on a subscription or a pay-per-use basis.

Webinar: Optimizing Your Meeting Room Business

Update: 2019 Meeting Room White Paper is now available.

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Optimizing Your Meeting Room Business

 

In this free webinar, Laurent, Keith, and Karina share how U.S.-based shared office space operators:

 

  • Currently Price their Meeting Rooms throughout the U.S.
  • Compare with Regus on prices & utilization and with each other
  • Can maximize Meeting Room utilization
  • Can optimize Meeting Room revenue
  • Can develop their distribution channel
  • Can identify the ideal mix of meeting rooms in size and quantity for their space
  • Prioritize Meeting Room Space for Full Time Members, or not
  • Perceive how their community is impacted by outside visitors and what to do about it
  • How to leverage the power of the new CloudVO Portal

They use the recent and data-rich CloudVO Meeting Room Business Review White Paper as a starting point, with new data and additional perspectives.

Thank you!

What Revenue to Expect from Meeting Rooms?

Update: 2019 Meeting Room White Paper is now available.

A Guide for Shared Office Space Providers (Part 2)

In a previous post, we shared some thoughts on how Shared Office Space operators can price their meeting rooms for hourly bookings. In this article we will explore another set of data released in CloudVO’s “Meeting Room Business Review” White Paper that quantifies revenue expectations per type of room.

The white paper explains why, from a practical perspective, a meeting room can be considered fully utilized if it is booked 100 to 120 hours per month. Using U.S. hourly averages for rooms advertised on CloudMeetingRooms.com, we estimated revenue potential that greatly exceeds alternative use of these rooms as Full-Time Offices.

This is certainly true at 100 hours of utilization as shown on this graph, even after factoring special incentives for your in-house clients, promotions, and wholesale discounts to resellers (which for simplicity we have assumed to be a weighted average of 35% for Day Offices and Small Rooms and 25% for Medium and Large size Rooms). But this is also true at less efficient utilization levels.

Average Monthly Revenue of Meeting Rooms at 100hrs Utilization

How long does it take for a new meeting room to ramp up to 100 hours? The answer will vary greatly depending upon what type of market you are in and your marketing strategy.

However, 50 hours of booking does not seem to be a stretched goal to reach within a reasonable amount of time. As a benchmark, less than 15% of the rooms in Pacific Workplaces 86-meeting room portfolio achieved less than 50 hours of booking per month in the first quarter of this year.

With that in mind, the revenue per square foot operators can generate from meeting room bookings is significant, particularly if you look at it on a per Square Foot basis.

The following size assumptions were used to generate the per Square Foot Revenue graph, which we felt sufficient to support the average seat capacity we found in our analysis for each category:

  • Day Offices: 125 sq. ft. (3 seats)
  • Small Rooms: 125 sq. ft. (4.3 seats)
  • Medium Sized Rooms: 220 sq. ft. (8.0 seats)
  • Large Rooms: 330 sq. ft. (13.4 seats)

Average Monthly Revenue of Meeting Rooms per square foot

Remember that these estimates are based on average hourly rates as published on CloudMeetingRooms.com throughout the U.S. and will hide significant regional variations. For example, New York City Day Offices are on average priced 21% higher than the national average and larger Meeting Rooms 38% higher.

Download the white paper for more data analysis, and join our LinkedIn discussion group for comments and discussions.

CloudVO ™ Analysis Team

How to Price Meeting Rooms?

Update: 2019 Meeting Room White Paper is now available.

A Guide for Shared Office Space Providers (Part 1)

Meeting Rooms Pricing White Paper
Download the entire meeting rooms Pricing White Paper

If you are a CloudVO partner and have ambition to develop a healthy meeting room business, your meeting rooms should be available for booking to people outside of your core members. Not only can outside visitors be a good revenue supplement for your business, but they may also enrich your community experience. Some of your meeting room users may later decide to take on a more permanent membership at your location.

Booking a meeting room in your location is a great way to respond to a user’s immediate need, but also for him/her to experience your location first hand.

So how should a Workspace-as-a-Service operator price its meeting rooms? We believe pricing meeting rooms should be a function of:

  1. A Realistic Approach to the Market
  2. The Competitive Environment
  3. Supply & Demand

A Realistic Approach to the Market

Sometimes we get emotional about our own space and we can easily convince ourselves that our space is unique and therefore deserves a considerable premium. Remember that the first time a user experiences a new meeting space is probably online, on your web site, a competitor’s web site, or on a reseller’s web site, where all meeting room pictures tend to look really good. So while you should not be shy about commanding a premium for unique amenities, don’t price yourself out of the market. Conversely, really low pricing may suggest a problem with the amenities for some prospects. A new coat of paint, a good wifi connection, or a new HD TV might be better solutions than giving the room away.

A good strategy we like to recommend is to price Day Offices and small meeting rooms aggressively, to lower the barriers to entry into your space, while keeping healthy margins on medium size and larger meeting rooms. This is because the users of small rooms are often also users of larger rooms when they need to get a team together or make a presentation to a larger group.

Day Office bookings represent roughly ¼ of all of the meeting room bookings, so slightly tighter margins on 25% of the business, to seed and feed healthier margins on the rest, seems to be a winning recipe.

The Competitive Environment

Unless you are the only space in town, the pricing level of other providers in your area matters. So check what your competitors are charging.

We found the meeting room business to be very price sensitive for small rooms and Day Offices, but a lot less price sensitive for larger meeting rooms (6 seats or more). This is probably because when a client books a larger room, it typically involves a larger group, often with a higher “utility” level attached to it, to use an economist term.

In fact, the cost per user of a larger room is typically much lower than the cost per seat of a small room, which suggests a very rationale behavior by users when they are less price-sensitive for larger rooms.

Another way to say this is that if I make a sales pitch in front of a large group of potential clients, I want to make sure that I am in a place with great amenities, which may impress positively upon my audience, and maximize my chances of having a successful meeting.

On the other hand, if I have a one-on-one meeting, I can stay more easily in control, and there is less of a risk the meeting will flop, even if I take my visitor to a coffee shop. Thus I am likely to be more price-sensitive while shopping for a small meeting room than for a large room.

Benchmark your competitors by checking their website or going on websites like Liquidspace.com, DavinciMeetingRooms.com, and CloudMeetingRooms.com to see what others are charging in your market.

Our experience is that going too far out of the middle of the range can severely restrict your business, unless of course your center is in a trophy building that serves free French Champagne on tap!

The graphs below, recently released by CloudVO in a “Meeting Room Business Review” white paper for CloudVO partners, shows the nationwide average of CloudVO partners’ pricing of conference rooms by size. Download the white paper for more metrics and analysis.

Average Hourly Price by Meeting Room Size

Supply & Demand

Pricing should also reflect the popularity of your service offering and the dynamic of your center. If your meeting rooms are fully utilized, there is clearly no need to price them aggressively. Conversely, if you have a low utilization, which we define as 60 hours or less of paid conference room usage per month, you may want to consider more aggressive promotions or lowering your price level. Remember that 10 hours at $100 gets you a lot less revenue than 100 hours at $40!

The following graph shows an actual meeting room utilization chart at 86 Pacific Workplaces Rooms, broken down by quartile.

Pacific Workplaces Meeting Room Utilization

Download the white paper for more data analysis, and join our LinkedIn discussion group for comments and discussions.

CloudVO ™ Analysis Team

Meeting Room White Paper 2015

Update: 2019 Meeting Room White Paper is now available.

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Meeting Rooms Pricing White Paper

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This white paper explores the industry averages of meeting room sizes, prices, utilization, and expected monthly revenue. This micro-economic analysis of Day Office and Meeting Room pricing, utilization rates, and revenue was done by mining the CloudVO database of published prices and actual bookings, and by using data shared by Pacific Workplaces in a case study.

 

The Meeting Room business is a substantial source of revenue for shared office space operators, with expected revenue significantly higher than alternative use, such as full time offices or coworking space. This analysis aimed at giving a sense of the potential for revenue per type of room, and per square foot. It also shares statistics on observed retail hourly prices for different kinds of rooms.

GWA Webinar: Managing Your Channels

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Managing Your Channels

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This webinar will explore how to effectively manage the opportunities -and the threats- presented by new breed and old breed of Channel partners, including:

  • Market Place Providers
  • Resellers
  • Network Promoters
  • Web brokers

The landscape of channel partners has changed dramatically, reflective of the explosion of demand for on-demand offices, coworking, meeting rooms, virtual offices, and other forms of on-demand workspaces. This has resulted in expanding marketing opportunities for local Workspace-as-a-Service ™ operators to reach new types of users, such as mobile workers and corporate accounts, or simply to expand their reach in their local markets.

Laurent Dhollande
Webinar Presented by Laurent Dhollande

On the other hand, the issues of retaining control, and of creating one’s own competition, for example in local Search Engine Management, are real. As the service industry is still searching for standards, the business models of service providers seem to fluctuate widely. How can Workspace-as-a-Service ™ operators make sense of these choices? How can they quantify the value they get from channels? What kind of business models make sense (or not)? How do they retain control of the process? What kind of partners make sense to align with, given the operator unique situation, resources, and goals?

Thank you!