Percentile Distribution

Percentile Distribution

Percentile - A value on a scale of 100 that indicates the percent of a distribution. It is a way of expressing where an observation falls in a range of other observations.
In PriceLabs, percentiles are used frequently to understand your how a property is priced relative to the market. In simple terms, if in a market the 75th percentile price is $250, then that means 75% of the properties in the market are priced below $250, and 25% are priced above $250.

In Pricelabs percentiles are essentially used to show the prices with respect to number of properties distributed in a certain area. 

This can be better understood in the overview table given in Listing Neighborhood Data panel.

From the above table we can observe the below - 
  1. On average, 25% of the 2BRs listings are priced below $122"
  2. 50% of 2BRs listings are priced below "$139" 
  3. 75% of 2BRs listings are priced below "$165"
  4. 90% of 2BRS listings are priced below "$186"

 How can you select which percentile is best for your listings?

We prefer using these percentiles with respect to the quality  of your listing (amenities)

  1. 25th Percentile - If your properties has less amenities or reviews, you can price your property according to the 25th percentile price displayed in the Neighborhood data tab. 
  2. 50th Percentile - If your properties has average amenities and you want to play it safe, always trust the median (average) price going on in the market. This is where most of the listings in your area would be priced at. You can use this price to increase your chances of bookings, as guests is your area are majorly booking at around this price.
  3. 75th Percentile - If your properties are at a higher end and you want to price accordingly, or you might be getting a higher demand there's no risk in pricing your listing according to the 75th percentile price. (You can go above the bar if your listing is doing really well)

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