We suggest you use the following formula to calculate your rate:
1. Determine the average hourly rate for workers in your city
2. Multiply the average hourly rate by 2.5
For example: If the average hourly rate for jobs in your city is $10 per hour. You should be charging at least $25 per hour for your services ($10 × 2.5). In this scenario, $25 should be the lowest amount you charge for your services in your city. From this base rate you can increase how much you charge per hour based on what you can offer your hosts as compared to other host offerings in your city.
If you’re wondering why you should 2.5 times the average hourly rate in my city, here’s the explanation:
There are certain costs of doing business that become instrumental in determining your rate. You might need to pay for a taxi or bus fare to get to your meeting point. Perhaps you’ll be buying a cup of coffee when you meet. Unless your guests agree, they are not required to pick up additional cost associated with your meeting, so you should be at a minimum be earning the average hourly rate in your city multiplied by 2.5 to make sure any additional cost associated with your meeting will be covered.
Don’t sell yourself short
When you set your hourly rate, the last thing you should be doing is setting a low price because you believe more people will book your because you offer the lowest price. In fact, if you set a lower price to entice hosts, your likely to get less bookings. Travellers that use ChumAround are not booking a host because it’s the lowest hourly rate. They are booking hosts because they want a new way to experience a city. They want to hang out with someone that shares common interest; someone that enjoys doing the same types of activities. It’s important to understand that people are paying you for the value of your service, not the perceived value of your time.
Is what you will show and do with people unique? Perhaps you know how to bypass long lines at local landmarks or theme parks. Maybe you know the best places to take amazing photos in your city. Maybe you speak multiple languages or a language that few other people around you know. When you write your description, make sure you include any and all unique things you can offer your guests. The more unique your offering, then the higher hourly rate you will be able to charge.
Is what you provide in high demand? Maybe you can get free entrance to some local nightlife venues or theme parks. Maybe you’re a model, celebrity, sports star, or professional athlete. Maybe you simply offer the best host service and highest ratings in your city. If you’re a host that can give people access to things that are in high demand then you are providing a premium service to anyone booking you and you should be charging a much higher rate than the average local host.
In summary, make sure the hourly rate you choose reflects exactly what you’d like to earn for every hour your chumming around with your guests. If you believe you can offer people an opportunity to activities or see things that are very unique as compared to other hosts in your city, then make sure you add the details to your description and charge an hourly rate that reflects the value of your service.