Short Term Rental Riches 283. 5 Reasons Your Automated Pricing Tool is Failing
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Apr 15, 2025 Automated pricing tools might not be as effective as you think. Discover five major reasons they can fail, from inaccurate data to the pitfalls of one-size-fits-all pricing. Unique properties and rural locations often throw off automated strategies. Learn how top listings risk being underpriced without manual adjustments. Hidden fees can also distort your pricing across platforms. Get insights on maximizing your rental income and stay ahead with smarter pricing strategies.
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Data Scraping Flaw
- Dynamic pricing tools scrape data, assuming blocked calendars mean bookings.
- This isn't always true, as calendars can be blocked for various reasons like maintenance or owner stays, leading to inaccurate pricing.
Tailor Pricing to Platforms
- Don't use a one-size-fits-all pricing strategy across platforms.
- Adjust prices based on performance; you might charge more on Airbnb than VRBO due to better visibility.
Data Limitations in Rural Areas
- Pricing tools struggle with limited data in rural areas or for unique properties.
- They broaden search radius or property types, making data less accurate.