I realised one common thing recently. Developers are giving more freebies and special deals these days. Okay, maybe not all developers but the numbers have certainly increased. For some, the value of the freebies are up to RM50,000. On one hand, these developers are saying that their margins are lower but here, they are giving out such freebies? Ironic right. Personally, I do not really like developers who sell much more expensively and then say they give 5 airconds etc. Come on, for anyone who has airconds installed in their homes, how much is 5 airconds anyway. Some would give renovation packages. I hate to say this, but the reason I renovate is not because I want my home to be exactly like the one on my left, the one on my right and the one opposite me!
I hope some of these developers would be able to see the big picture. The reason I buy your offering is because the location happened to be suitable, the quality is acceptable and the concept really do look good. I have never heard of any buyer who said their main reason for buying is because they get free aircons, free renovation packages or even potential chance to win a car. Haha. Seriously, if I needed a new car, I will buy a new car. In other words, the quality of your home matters tremendously. Instead of using a slightly cheaper material after you have offered all the rebates etc, why not use better materials, maintain your price and tell them to really understand the difference between a cheaper materials versus the ones that you are using? I think this works better.
There are also developers who are forever telling people that their prices are lower. Yet, their qualities are also lower. Come on, these days, do you still want to be labelled as ‘that kind of developer’? Every time you launch a new property you have to use price as your key differentiation. Buyers who may have blacklisted you may then give you another chance and as usual, regretted it later on. Fact is, land cost, materials cost, labour costs are almost similar. In other words, it just do not make sense that one developer can sell much cheaper even though it is in the same area as the more established one. UNLESS, they do less…..
Do it well, sell it well. There’s really no need for so much of free stuffs.
written on 4 Oct 2014
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