This article pertains to SpareFoot users on the OneTime pricing model. To learn how this works for RentPercent users, How are SpareFoot fees calculated? (RentPercent Pricing).
Your SpareFoot fee for a Move-In is based on your Bid and the price of the unit the customer reserved. If your facility is manual (non-integrated), you will be charged an additional fee each month if your Move-In Rate (MIR) is less than 50%.
Calculate your SpareFoot fee for a move-in
Your Bid
In order to calculate your SpareFoot fee for a reservation, you’ll first need to know your facility's bid. Your minimum bid is set when you sign up for SpareFoot and you have the option to update your bid modifier in order to increase your ranking in our search results. If you do not know your current bid, click Bidding from the navigation menu in MySpareFoot.
You’ll see your current Bid in the Your Current Rankings section of the page.
📖 If you’d like more information about bidding, check out our article: All About Bidding.
Calculate your move-in fee
Once you know your Bid, you can calculate your OneTime SpareFoot fee for a move-in by multiplying the price of the unit by your Bid.
For example:
Unit price ($100) X Bid (2) = SpareFoot fee ($200)
Minimum Move-In Rate Fee
If your facility is manual (non-integrated), you will be charged an additional fee each month if your Move-In Rate (MIR) is less than 50%. The fee represents the additional move-in fees we would have collected if your MIR had been the average we see on the SpareFoot network of 50%. For example, if you receive 10 reservations through SpareFoot but only 3 tenants move in, you’ll be charged for those 3 tenants, plus an additional 2 tenants, to bring the move-in rate to 50%.
Please note: This fee also applies to any facilities on the OneTime pricing model with Hybrid Billing.
Why does SpareFoot charge this fee?
Non-integrated facilities tend to see a lower Move-In Rate than those that are integrated. This is often because non-integrated listings require users to update unit availability, price, and promotions manually. This can result in out of date or inaccurate information and lead to a poor customer experience. From customer surveys, we know inaccurate listing details and unit availability is a top reason for not moving in. Software integrations update unit availability and price every hour ensuring accuracy and up-to-date listing information which results in a better customer experience and a higher Move-In Rate.
Integrated facilities do not pay the Minimum Move-In Rate Fee. If you use a Facility Management Software that integrates with SpareFoot and are interested in integrating your account, please reach out to our support team at support@sparefoot.com.
How will I know how much I’m being charged?
During the open statement period each month (the 1st - the 10th), you will see an estimate of the Minimum Move-In Rate Fee for that statement period based on your current reconciliation.
Once the statement closes, we will calculate the final Minimum Move-In Rate Fee based on your reconciliation. If your MIR is 50% or higher, you won’t be charged the Minimum Move-In Rate Fee and will only be charged for the reservations you reported as moving in.
You will see a line item on your monthly billing receipt and in your Statement Archive for previous months if you were charged a Minimum Move-In Rate Fee for that month.
📖 To learn more about reconciling your statement, check out our article: How do I reconcile my statement? (OneTime pricing).
How is the fee calculated?
The fee is calculated using the following equation:
(Minimum MIR - Your MIR) * Total number of reservations you received * (Total unit price of reservations that did not move in * your Bid)/Number of reservations that did not move in = Minimum Move-In Rate Fee
Example:
A SpareFoot client receives 4 reservations in July. When they reconcile for those reservations during the open statement period in August, they report that 1 of the reservations moved in and the rest did not. This means their Move-In Rate is 25% MIR. Their Bid for those reservations is 2.
Their reconciliation is as follows:
|
Unit price |
Move in status |
|
$100 |
Moved In |
|
$100 |
Did not move in |
|
$100 |
Did not move in |
|
$100 |
Did not move in |
Their Minimum Move-In Rate Fee is calculated using the Minimum Move-In Rate Fee equation:
|
(Minimum MIR - actual MIR) |
X | Total number of reservations received | X |
(Total unit price of reservations that did not move in X Bid) |
/ |
Number of reservations that did not move in |
= |
Minimum Move-In Rate Fee |
| .50 - .25 | X | 4 | X |
(100 + 100 + 100 X 2) |
/ | 3 | = | $200 |