5 Strategies to Boost Seniors Housing Revenue in 2023

Senior housing is a growing industry, with more and more seniors looking for housing options that cater to their unique needs. As a result, there are many different pricing strategies that owners and managers of senior housing can use to ensure they are not leaving occupancy or revenue on the table.

Here are some of the most popular pricing strategies used in senior housing:

1. Tiered Pricing

Tiered pricing is a common pricing strategy used in senior housing. It involves offering different pricing tiers based on the level of care and services provided. This allows seniors to choose a pricing tier that fits their budget and needs.

This strategy is great for senior housing properties that offer a range of services and care levels, as it allows seniors to customize their experience. However, it can be difficult to implement as it requires a clear understanding of what services each tier should include.

2. All-Inclusive Pricing

All-inclusive pricing is a pricing strategy that bundles all services and amenities into one price. This allows seniors to know exactly what they will be paying each month and what services they will be receiving.

This strategy is great for senior housing properties that offer a wide range of services and amenities, as it simplifies the pricing process for seniors. However, it can be difficult to implement as it may not provide enough flexibility for seniors who only need certain services.

3. Promotional Pricing

Promotional pricing is a strategy that offers discounts or other incentives to attract new residents. This can include things like reduced rent for the first month, waived application fees, or free amenities.

This strategy is great for senior housing properties that are looking to attract new residents quickly. However, it can be expensive to offer promotions over the long term.

4. Market Pricing

Market pricing is a strategy that sets prices based on the market rates of other properties in the same area. This is a common strategy used by many senior housing properties because it ensures that their prices are competitive in the market.

The downside to this strategy is that it may not always work in your favor. For example, if there are many new developments in your area, your prices may not be competitive enough to attract new residents.

5. Value-Based Pricing

Value-based pricing is a strategy that sets prices based on the value that the property provides to residents. This takes into account factors such as location, amenities, and the overall quality of the property.

This strategy is great for senior housing properties that offer unique amenities or are located in desirable areas. However, it can be difficult to implement as it requires a thorough understanding of what residents are willing to pay for.

In conclusion, there are many different pricing strategies that owners and managers of senior housing can use to ensure profitability while remaining competitive in the market. Each strategy has its advantages and disadvantages, and it is up to property owners and managers to decide which strategy works best for their specific property. By understanding the different pricing strategies available, senior housing property owners and managers can make informed decisions that will benefit their properties in the long term.

If you are looking for more insights on pricing, positioning and promoting your communities, please visit our website at https://www.talkfurther.com/pricingassistant

Alex Smith

SVP of Pricing Optimization