5 ms·

Not sure how they make a lot of money on this. At $15/hr, and and average of 10 hours of booking, that's $150/day. 20 days a year (you can only book on weekda

Not sure how they make a lot of money on this. At $15/hr, and and average of 10 hours of booking, that's $150/day. 20 days a year (you can only book on weekdays), that's a total of $3k a month per space. In NYC, I've got to figure at least $1500 a month, probably higher. Furniture and app development is a relatively fixed cost (maintenance), cleaning after every appointment can add up if you've got a lot discontinuous, small appointments. Doesn't seem like there is a lot of margin - or margin for error if you don't fill the rooms. You've got a large fixed cost that's paid up-front on one side and no guarantee of selling that space - so the business has a lot of risk. Interesting but challenging.

cjlm 13y ago
FWIW, it's $25 an hour in New York. Still challenging I but also perhaps not limited to 10 hours a day.
- inthewoods 13y ago
  Ah, yes, it was showing me Montreal - so $25 x 10 hrs x 20 days = $2500/month - better. In fact, my suggestion was going to be to double their rates! If I was them, I would be encouraging/exploring more hours per guest - so charge $30 for one hour and then drop it in blocks of 2 or 4 hours. I still don't like taking on the inventory risk. I think they limit it to 10-12 hours per day in their schedule (as they limit the days to during the week). I'm just making an assumption about their occupancy rate - could be higher or lower.
  - chockablock 13y ago
    > I still don't like taking on the inventory risk. In the article they mention that the spaces are often small underused spaces in commercial buildings, and that they try to make revenue-sharing deals with landlords, rather than paying fixed rents.
    - inthewoods 13y ago
      Thanks for pointing that out - that makes it a lot more interesting. Basically they then become a marketing arm for temp space for the landlords - a much better business imho.
  - sunir 13y ago
    You are off by a factor due to an error in your math $25/h x 10h/d x 20d/mo = $5000/mo
    - inthewoods 13y ago
      Oops - you're right - shouldn't do math before coffee!
    - breatherjulien 13y ago
      This.

cjlm 13y ago

FWIW, it's $25 an hour in New York. Still challenging I but also perhaps not limited to 10 hours a day.

inthewoods 13y ago
Ah, yes, it was showing me Montreal - so $25 x 10 hrs x 20 days = $2500/month - better. In fact, my suggestion was going to be to double their rates! If I was them, I would be encouraging/exploring more hours per guest - so charge $30 for one hour and then drop it in blocks of 2 or 4 hours. I still don't like taking on the inventory risk. I think they limit it to 10-12 hours per day in their schedule (as they limit the days to during the week). I'm just making an assumption about their occupancy rate - could be higher or lower.
- chockablock 13y ago
  > I still don't like taking on the inventory risk. In the article they mention that the spaces are often small underused spaces in commercial buildings, and that they try to make revenue-sharing deals with landlords, rather than paying fixed rents.
  - inthewoods 13y ago
    Thanks for pointing that out - that makes it a lot more interesting. Basically they then become a marketing arm for temp space for the landlords - a much better business imho.
- sunir 13y ago
  You are off by a factor due to an error in your math $25/h x 10h/d x 20d/mo = $5000/mo
  - inthewoods 13y ago
    Oops - you're right - shouldn't do math before coffee!
  - breatherjulien 13y ago
    This.