STRATEGIC PRICE STRATEGIES OF REAL ESTATE UNITS
The strategy of price policy is an art, especially in the Real Estate industry, just adjusting a few thousand dong / m2, the investor can earn an unintended profit of up to thousands of billion. There are many pricing strategies, but overall, there are four most frequently used in this industry: Penetration Strategy, Price Skimming, Premium Pricing (Premium Pricing). ) and Psychology.
1 / Psychological pricing strategy
There are many projects on the market that offer no logic, often selling emotions to customers rather than planning, location, utilities, etc. must draw a perfect picture on the right brain of the customer in terms of space, rich boundaries … the decision to buy depends on the left brain, this time the price / m2 how much is no longer is the important factor.
Projects are psychologically priced:
– Centenial (250-300 million / m2), strongly striving into the psychology “Heritage carries the mission to connect people with the past and retain memorable memories for future generations” with this price is not comparable. location, planning, utilities along with the adjacent Vinhome Bason project with the price (100 million VND / m2), and with this psychological pricing strategy salespeople will never mention the price when consulting its customers;
– Spirit of Sai Gon (Roumor 450 million), hit hard on national pride with the symbol of two dragons in the Ben Thanh Quadrangle overlooking the city. It is also quite respectable to investors in the Covid wave that offers this superhuman price …
Target: Super-rich KD Guests – Special Guests Group Keeping Property or Cleaning
Optimal sale / marketing: VIP party – blowing emotions into every noble party under sparkling candles.
Segment: Super luxurious
2 / Penetration strategy
This pricing strategy will start from a lower price than the market to explore – encouraging buyers to mainly expand market share and then start increasing prices, which is most suitable for megacities with The amount of units sold was large. Determining from the beginning will make romour low and suitable with the market then based on the number of reservations, interest and market reaction. With this strategy, the investor must have a marketing campaign, aiming at the right customer insights and attaching to the brand that has been successful before – this price strategy is no more successful than VINHOME, particularly the urban centers. peri-urban: Ocean Park, Grandpark … this price strategy is widely used in most of the current BDS Group in the country such as Novaland, Hung Thinh, Dat Xanh, Himlam ….
Target: The group of customers investing / leasing / staying
Optimal marketing plan: Strong communication on social media …
Segment: Suitable for Medium-Fair-Sang segments
3 / Premium Strategy
Premium pricing is a pricing strategy that is higher than the competition, meaning that in the same area, the pricing will be equal to the Highest price in the same region + + Premium, this pricing strategy is usually suitable for foreign investors such as Capitaland, Kepple Land, Son Kim Land … the typical example of this type of valuation is the Palm City project next to Green Land’s Gem Riverside, at the time the two projects were open for sale. Palm = Gem + premium price.
Objectives: Office customers + investment group
Optimal marketing plan: strongly strike on the CDT brand
4 / Skimming Strategy
Skimping price is the strategy of applying the highest price that buyers can accept when they have just appeared on the market to get the highest profit, which can be understood quickly as skipping all the top-boxers. before. In order to come up with a price-skimming strategy, the Investor must ensure the psychology for customers “expensive products are genuine”, less money can not inhale aromatic oil besides having to create a “scarce” mentality. . For the apartments on the market must ensure all 3 elements: Building quality + good location + class area, to meet these factors on the market not many investors do this.
Riverpark Premier is one of the examples of a dizzying price strategy, within just a few hours when 99% of sold apartments were sold for sale with 2016 prices at about VND 6-20 billion. Not small at the time.
Goal: customer group enjoying life + upstream
Optimal marketing plan: Focus on insight and scarcity and focus on the target segment
The use of any pricing strategy is risky for investors, selling too quickly or selling too slowly is also an issue, and the scrambling price strategy for social projects cannot be applied. nor can it apply the penetration price for luxury projects. If you say no exaggeration, the selling price of the product is no different from getting married to a daughter, if the girl is set too high, the girl will be dull and set too low. ”godfather”.