Using revenue-management programs to optimize rental rates is not a new concept, but perhaps not enough attention has been paid to the experts who make it work in the real world.
The November issue of UNITS magazine will feature an article profiling the Laramar Group and how it uses a pricing manager whose daily duties are entirely devoted to managing Laramar’s revenue-management software. By using a pricing manager to incorporate feedback between Laramar’s property managers into the revenue-management program, they are able to maximize the value of their revenue management system.
According to the article, Laramar’s pricing manager includes the community managers on pricing decisions on a weekly basis, confirming the accuracy of the program’s generated data. This overrides any aspects of the program that the property managers think are out of line with competitors’ rates or not appropriate for the current market place. When they decide to override the program based on observations of the property managers, the appropriate pricing adjustments can be made within 30 minutes.
For the entire article, check out the November issue of UNITS magazine arriving to National Apartment Association members and UNITS subscribers in mid-November.
