AMENITY FEES, P.2

Close the loop on price increases during the budget cycle by analyzing whether the increases netted anticipated profit. If expectations fall short, you may need to go back to your old pricing.

Communicate your rationale for each pricing determination to shareholders. Explain why the price was set and the anticipated revenue.

Balance quality of life with amenity pricing. Recently, our board imposed stricter conditions on party room renters, including fees for additional security for large parties. While we think this will lower shareholder exasperation by reining in loud, out-of-control parties, we are also aware that we may lose revenue because of the higher price point. However, if the choice is between the contribution of $3,000 of revenue to a $1 million budget and peace and quiet, I recommend that peace and quiet should rule.

From the December 2011 issue of Habitat magazine. For print-magazine articles back to 2002, join our Archive >>