Moore,
Thank you for the comments and criticisms. I would like to answer each of them. Please see below (I haven't worked out how the quoting mechanism works here so please bear with me):
"I just watched your virtual tour and I think you did a great job. Everything in the apartment looks brand new."
Thank you. It is. Top to bottom. Even the walls.
"Your target market is "Americans / Europeans / Australians" and as an American I'm going to assume that I represent the largest sector of your target market."
Well, I wouldn't say largest. In the 6 months I was living there I noticed a larger amount of the other two. I am guessing it will be about evenly distributed between the three.
"I love MDP and have gone there probably 20 times over the past 4 years, always for 2-3 days."
I hadn't considered that. I expected that most people will be travelling so far that they wouldn't stay for such a short time. But if they are doing more of a tour of the country, then they may spend less time there. I will revise that.
"Would I spend US$1400 just for basic accommodation for a week's vacation in MDP? Not a chance in hell."
Well, it certainly isn't basic accommodation. The amenities offered are much more than you can find in any hotel in the city, especially for someone who can't speak Spanish and comes during peak season. The price is less than the Sheraton and provides more.
"MDP, as a side-trip from BA, is possibly a very distant 4th place behind Iguazu, the Glaciers, and Bariloche. MDP, like most of the other side-trip destinations, is a place where Americans might spend a couple of days but not a week+."
The more I think about it, the more I agree with you. I am abolishing the minimum stay.
"I just returned from MDP on Friday and stayed at the Hotel Dos Reyes as usual. Excluding a few exceptional hotels in Capital such as the Hilton and the Alvear, Hotel Dos Reyes is probably the nicest hotel I've seen in Argentina. As you probably know, its located about 2 blocks from your apartment in the center, and I paid 150 Pesos = US$50/ night for my 3-day stay there (25% of your rate)"
Actually, that is 50% of my rate. Did you notice that the rate is different in the off season ($99 per night not in the Summer) As I am sure you know, the price during the official Summer months is much higher. Actually it is double the price for Dos Reyes. That is still half the price of what I am asking however. In my dealings with the Dos Reyes, they didn't have a lot of help for non-Spanish speakers. And certainly not an on call concierge to help you with anything you want any time.
"The only major benefit I see of having an apartment there is having a separate living room where you can hang out, watch TV, read, etc. "
The privacy issue is there too.
"Basically some more space. From what I see, the living room of your apartment is tiny."
It's not as small as it looks, it's just hard to get the right angles in the photos. It isn't huge, but it's certainly a nice place to relax away from the bedroom.
"As for the small kitchen, it looks very nice but most nice hotel rooms have the same mini-refrigerator as your apartment, which meets most, if not all, of our kitchen needs."
The kitchen wouldn't be of as much use to someone staying 3 days as it would if you were staying a week or more. The main reason I even kept it is for resale.
"The entire apartment looks very small – IMO it is effectively a decent single hotel room with a tiny living room on the side."
That's almost right. It's like a double hotel room with a living room and kitchen.
"You write "we can sleep up to 5 people" on your main page, which may be true for Argentines. Americans, however, only put 1 or 2 people in a single hotel room, but never 5."
This would be for families or stag groups. 5 is pushing it, I think I will change that to 4. But it is feasible. Both sofas open up for sleeping, and they are custom and very comfortable.
"Also written on the top of your page is "The price of EVERYTHING is about 30% of the prices in North America or Europe". As an American I'm thinking – then why is your hotel / apartment about 100% more expensive than what Id pay in lets say, Kansas City, for a similar room at an apartment / hotel that I know and trust, with no minimum stay? Applying the 30% , Id expect your apt / hotel to cost US$20 to US$30 per night. US$200, that must be an error?"
Good point. Perhaps writing "Everything else"? Just kidding, but you can't really compare Kansas City to Mar del Plata. The rest of the page is there to show people the difference and to justify the price.
"I see that you aim to compete with the Sheraton. I've been to the Sheraton here in Capital and stayed at the Sheraton Iguazu once. That was the only time I remember paying US$ rates here since there are not so many hotel options at the Iguazu Falls."
Let me recommend the "Hostel Inn Iguazu". You can get very nice rooms for very cheap. It's more of a resort than a hostel. They have some hostel rooms, but also many rooms with a large bed and private shower. The taxi ride from there to either side of the falls is really cheap. Plus it's next to an animal park with monkeys in the trees. Unless you mean inside the park where there is literally only 1 choice on each side.
"Besides, a familiar name like that is comforting to most Americans traveling abroad even if the price isn't so competitive."
That's true. Many, if not most, Americans are comforted by a big name like that.
"My advice is to cut your rates by at least 50%"
I am considering a slight price adjustment. However, I have already gotten a large response before I even put the page up.
"and, most importantly, to eliminate your 1 week minimum stay."
That's 100% for sure.
"I hope that I am wrong about this because if so, I will purchase several of those dirt-cheap apartments in MDP,"
I spent a few months trying to find one that was not overpriced and had a good location. All the real estate agencies there mostly do exclusive places, so it's a lot of leg work to find the right place.
"renovate them for almost nothing"
This bit was what I thought. But man, things just kept adding up. I suppose that the hardest part is that it's not be. As. I mean any good stuff you want either needs to be custom made or sent down from be. As. The labor is cheap, but siesta is a killer, and then construction hours during summer are crazy. It took 3 times as long as planned and more than double the cost.
"At those rates, you probably recover the purchase price of the apartment in just one year!"
Based on standard hospitality occupancy percentages, it's actually a few years, including the renovation costs (which were more than the apartment cost to begin with)
"In American business (and most other successful economies) you generally make money by selling decent quality at a lower price but having much higher volume."
That's one model, but other is about filling niches. My other business is selling absinthe online. When your market is the whole world, you don't need to be the cheapest, you just need to have something that people desire that isn't widely available elsewhere.
I really appreciate your taking the time to help me out here. I would really like for you to stay there and give it a test run and then tell me what you really think. Please let me know if that interests you. I have a few reservations, but let me know when / if you would like to give it a go and I would love to set you up.