In this guide 8 sections
Start from your monthly cost, not from the centre down the road. Divide total fixed cost by the seats you can realistically fill, add a margin, then test the price against the market. Quote without tax, because GST is added on the invoice. Revisit the figure each quarter as occupancy moves.
Add up the real monthly cost first
Open last month’s bank statement and list every fixed outflow for the centre. Rent comes first. Then staff, power, internet, housekeeping, pantry supplies, software and the monthly share of the fit-out you paid for up front.
Most first-time operators forget the last item. A fit-out paid in year one is still a cost in year four, and it belongs in the price.
Keep the list on one sheet. Pricing is arithmetic before it is strategy.
- Rent and maintenance charges
- Front desk, housekeeping and community staff
- Power, internet bandwidth and air conditioning
- Fit-out cost spread over the years you expect to use it
- Software, insurance and licences
Turn cost into a price per seat
Here is an invented example, so use your own numbers. A centre with 100 seats spends 8 lakh rupees a month in all. If 70 seats are paid for, the break-even is about 11,430 rupees a seat. At 85 paid seats it falls to about 9,410.
The gap between those two figures is the whole business. A price that works only at 85 seats is a bet on occupancy you do not yet have.
Price for the occupancy you reached in your slowest recent month, then treat anything above it as profit.
Count room and day-pass income separately
Meeting rooms, day passes and virtual office plans are real income, but they are lumpy. Do not use them to lower your seat price on day one. Treat them as a cushion, and let the first quarter show how much they are worth.
Decide how many room hours a plan includes before you sell it. A plan with generous hours and a low fee quietly moves your heaviest users to the cheapest price. Hours beyond the plan should be billed at a rate you set on purpose.
Check the number against the market
Now look outward. Visit two or three centres near you, ask for their rate card and note what each plan includes. Compare like with like: a dedicated desk with a locker is not a hot desk.
If your break-even sits above the going rate, the answer is rarely to cut the price. Look at cost, at seat density, or at a different customer, such as small teams who need a private cabin.
Quote without tax and write the GST line down
Coworking charges are commonly reported to carry 18 per cent GST, billed as a rental of non-residential property. Sources differ on details such as bundled services, so confirm the treatment with your chartered accountant before you print a rate card.
Show prices before tax and say so. A member comparing 10,000 and 11,800 rupees should know which figure includes GST. Keep the plan, the tax line and the deposit on separate lines of the invoice.
Put the advice to work.
Use a test copy or fictional example to turn the discussion into something your team can check.
Add up the real monthly cost first
Which observation would change the proposed scope?
For “Add up the real monthly cost first”, observe someone completing the task with a representative example. Record where they stop, ask another person or re-enter information, then choose the smallest change whose result the team can verify.
Background reading: GOV.UK: researching user needs
Break-even per seat sheet
A sheet with the monthly cost list on top, a row for seats you can sell, and a table that shows break-even per seat at five occupancy levels. A last block holds room, day-pass and virtual office income, kept apart from seat income.
Open a blank worksheet to printQuestions owners ask
Should I match the cheapest centre nearby?
Not without checking your own costs. If the cheapest price sits below your break-even at realistic occupancy, you will lose money on every seat you fill.
Is a deposit part of the price?
No. A deposit is held against damage or dues and shown on its own line. Ask your accountant how it should be treated for GST in your case.
How often should I revise prices?
Review them each quarter against occupancy and costs. Raise rates at renewal, with notice, instead of mid-term.
Do meeting rooms need their own price?
Yes. Set an hourly rate per room, an included allowance per plan and a rate for hours beyond it.
Sources
- EY: GST on managed workspace services (November 2024) — verified 8 Nov 2026
- TaxBuddy: GST on co-working spaces and shared offices — verified 8 Nov 2026