Post by shati106 on Nov 2, 2024 6:31:02 GMT
If you don't know the prices and needs of a specific region, scaling and expansion can turn a promising business into a loss-making one. Alexander Vedernikov, product manager at Profitbase, explains what to do if a developer has no experience in a new region, how to determine the pricing bar, and how to build a break-even model for selling lots.
How to avoid pricing mistakes in a new market?
When entering a new market, it is impossible not to make mistakes. And these mistakes are not so much connected, for example, with the wrong selection of materials for the climate, but with the inability to build pricing for the capabilities and needs of the market. This leads to lost profits due to a lack of understanding of the needs of the target audience, loss of customer share and the washing out of the premises fund.
Let's figure out how a developer should structure pricing in a new region: from studying the USP to the method of regulating lot prices.
Step 1: Conduct an initial market analysis
When setting your initial prices, consider the social media marketing service market itself: to study it, it is often enough to look at supply and demand. One way to do this is to become a mystery shopper for local players.
For completeness of the results, it is also necessary to analyze Rosreestr for unique trade offers and their sales rates. The uniqueness of the offer will depend on the number and demand for selling characteristics.
Monitor the dynamics of demand. A large market is not necessarily promising. A region with rapidly growing demand may be more attractive to a developer than one where the market is larger but demand is falling. It is much easier to attract new buyers than to take them away from competitors.
To get the full result, you will have to analyze Rosreestr for unique selling propositions (USP) and the sales rates of lots with USP. The uniqueness of the offer will depend on the number and demand for selling characteristics, which are not so difficult to determine.
Step 2: Analyze popular item groups
Conduct an analysis of transactions for popular and expensive groups of lots in a new region and find out why these lots are in demand and at what price they were purchased.
Based on the analysis, a model of selling characteristics within the region will be formed: number of rooms, layout, view from the windows, number of floors, etc.
So, in Vladivostok, a three-room apartment with a sea view on the 17th floor costs 11.9 million. A similar apartment, but on the 6th floor, will cost a million less. Simply because the sea is not so clearly visible.
There are also one-room apartments: one with a view of the green area, and the other - of the sea. One floor, the same footage, but the prices already differ by 300 thousand, the "sea" apartment will be more expensive.
How to avoid pricing mistakes in a new market?
When entering a new market, it is impossible not to make mistakes. And these mistakes are not so much connected, for example, with the wrong selection of materials for the climate, but with the inability to build pricing for the capabilities and needs of the market. This leads to lost profits due to a lack of understanding of the needs of the target audience, loss of customer share and the washing out of the premises fund.
Let's figure out how a developer should structure pricing in a new region: from studying the USP to the method of regulating lot prices.
Step 1: Conduct an initial market analysis
When setting your initial prices, consider the social media marketing service market itself: to study it, it is often enough to look at supply and demand. One way to do this is to become a mystery shopper for local players.
For completeness of the results, it is also necessary to analyze Rosreestr for unique trade offers and their sales rates. The uniqueness of the offer will depend on the number and demand for selling characteristics.
Monitor the dynamics of demand. A large market is not necessarily promising. A region with rapidly growing demand may be more attractive to a developer than one where the market is larger but demand is falling. It is much easier to attract new buyers than to take them away from competitors.
To get the full result, you will have to analyze Rosreestr for unique selling propositions (USP) and the sales rates of lots with USP. The uniqueness of the offer will depend on the number and demand for selling characteristics, which are not so difficult to determine.
Step 2: Analyze popular item groups
Conduct an analysis of transactions for popular and expensive groups of lots in a new region and find out why these lots are in demand and at what price they were purchased.
Based on the analysis, a model of selling characteristics within the region will be formed: number of rooms, layout, view from the windows, number of floors, etc.
So, in Vladivostok, a three-room apartment with a sea view on the 17th floor costs 11.9 million. A similar apartment, but on the 6th floor, will cost a million less. Simply because the sea is not so clearly visible.
There are also one-room apartments: one with a view of the green area, and the other - of the sea. One floor, the same footage, but the prices already differ by 300 thousand, the "sea" apartment will be more expensive.