During a class on pricing at the COP30 home hosting course in Belém – offered by Raízes in partnership with Diaspora.Black and aimed at 50 residents of the city – I came across an intense and revealing discussion. In the midst of spreadsheets, calculations and profit margin definitions, the question that still echoes emerged: what is a fair price?
In recent weeks, the issue has made international headlines. Real estate speculation and abusive accommodation prices for the event have even generated a diplomatic crisis. Foreign delegations have warned that the prices charged could make COP30 empty, compromising the participation of civil society organizations and developing countries. As the GloboNews report showed , this is a real and urgent concern. It’s also worth reading the Capital Reset/UOL article, which goes deeper into the debate.
It was in this context that I proposed to the students a more ethical and strategic approach to pricing their properties. After all, we are talking about real people, with dreams and bills to pay, but also about a global event that mobilizes urgent environmental and social causes.
Pricing is more than calculating
Whenever I teach a class on pricing, my first concern is to clarify the basic concepts: fixed costs, variable costs, break-even point, profit margin. It’s essential to teach how to identify these values within each type of business and cross-reference them with well-done market research. But it’s also essential to remember that pricing isn’t just an exercise in numbers, it’s also a question of values.
The price we put on our work says a lot about how we see it. When someone doesn’t value their own effort, they tend to reduce margins or ignore important costs, which can lead to a financially unviable business.
Is the sky the limit? Or common sense?
During the course, we noticed an alarming trend: exorbitant prices for simple properties, with owners wanting to earn in twelve days what they might not earn in five years. I understand the opportunity, because it really is a unique event, but is it worth putting everything at risk?
I left the class with several questions on my mind. How should we include investments in furnishings, structure and improvements that will last beyond COP30 in the price calculation? Should we dilute these costs over time or pass them on in full to the event guests? And should monthly costs – such as electricity, water, internet – be divided by 12 days or by the whole month?
There are no single answers to these questions. But I believe that conscious pricing should take into account:
- Real cost + long-term strategy: investments in sheets and towels, for example, should be spread over more than one rental.
- Transparency in bills: expenses such as internet, energy and water can be divided up in proportion to the days you stay.
- Market research with a critical eye: look at the prices charged, yes, but also at the profile of the public and their ability to pay.
- A fair price is different from a low price: quality, comfort and experience can justify a premium price, as long as it is backed up by ethics, empathy and clear communication.
Collective learning
Pricing, for me, is a living process. With every class, every mentoring session, I learn together with the entrepreneurs. COP30 brought a new layer to this debate: the challenge of balancing opportunity, justice and sustainability.
It is possible to earn with dignity. It is possible to undertake with purpose. And it is possible to be part of an event like COP30 without falling into the trap of profit at any cost.
If you’re a host or hostess in Belém, here’s an invitation: rethink your prices. And more than that, think about the impact your choice can have – not just on your pocket, but on the image of the city, the success of the event and the legacy it can leave.
Photo: Barbara Ataide
