Hi Folks
This post is in reference to a discussion that developed in this thread https://www.propertyinvesting.com/forum/topic.asp?TOPIC_ID=11893
What incentives would help to sway your buying decision, of course assuming your due diligence was all good.
We thought of domestic holiday, OS holiday, Plasma TV, car … what would you like?
Cheers
Leigh K[biggrin]I saw the other thread and I would love to receive a $5k holiday/gift when buying a property.
The issues I have are as follows;
1. Your paying for the gift anyway. Someone had to pay for it so its built into the purchase price of the property.
2. Are there any tax implications? My guess is that there would be. eg. Price of Property $250k, price of holiday $5k. Therefore the cost price for property is $245k. So you may have some capital gains implications. But I am just surmising. (is there such a word).
There may be some people interested in this deal. For some people on good incomes its certainly easier to buy a property than save for a holiday. So these people may be interested.
Leigh,
There are some new apartments being sold in redfern that have a $6k furniture package with them. If your place is fully furnished though, that kills off that notion. If it were not furnished, I reckon it would be good to give a voucher instead of furnishings.
If you wanted to be a bit more “novel”, you could think that if you wanted to spend 2k, well, it wouldn’t buy much furniture, so you could have 2k coucher at fish music, or some place. depends on what market you’re wanting to buy the unit- if it’s yuppies, they’d want the CD’s… if it’s older folks, they might want a voucher at a gardening centre (or they might want CD’s too).
Yack, yes, we know that prices can be inbuilt to “gimicks” so they are not “bonuses” at all… but if a number of units are being sold, and they are all the same, and they are at the same price, and one offers me 2k or 5k or 10k of stuff- for the same price as the others, then i am gonna buy that one over the other ones
And yeah, yack, according to dictionary.com, surmising is a word
kay henry
kay henry
Hi all,
My way of thinking is similar to Yack’s.
If we were looking to buy an IP with a “free” plasma TV or holiday built into it, I would negotiate like mad to reduce the price of the IP, and buy it without the gimick.
Just my boring thoughts,
Del
If everyone is selling at the same price – why not just sell at a lower price than offer a holiday or TV etc.
yack,
I really think it depends on who is buying in the market. It’s also a tool of marketing- and I would enjoy using that tool. All else things being equal (and that is the salient point), I would be happy to take the holiday. “Bonuses” can work- carsellers can add stuff onto a car and people buy it. It might not help, but it can’t harm.
kay henry
OK,
If I couldn’t negotiate the price any lower,[confused2] and I had to choose an IP with a TV as against a holiday etc, I’d opt for the plasma TV, as it’s something that will make my IP more rentable.
Regards,
Del
One would think that reducing the price would help but alas no it hasn’t made a diff. So maybe an incentive won’t work either but we are prepared to give it a whirl and if they end up not wanting the incentive then fine we will go back to reducing the price like we initially did but if the incentive ends up bringing us a buyer so be it.
Sad thing is it is an awesome location with a view straight over Rosehill racecourse rose gardens and views to Homebush stadium and even the Harbour Bridge.
So Kay, where would you like to go for a holiday?[laugh4]
Cheers
Leigh K[biggrin]Hi LeighK,
How long you been trying to sell the apartment?? Maybe you just need to give it a little more time and then you wont need to use any incentives.
I think its worth a shot but in all honesty I dont think it would attract me per se. If i wanted to buy the apartment I’d buy coz I wanted to not coz it came with a holiday or TV.
Pepper
hehe Leigh, and just to think you were gonna sell it to me before *without* any incentives. Well, now, of course, I am gonna wait. You’ll say “I’ll throw in a holiday…” and I’ll say “and then…?” and you’ll say “shopping voucher?” and I’ll say “AND THEN??” and you’ll say “plasma TV?” hehe…
I can wait, Leigh, I’m patient
kay henry
Leigh,
We alway throw in plenty of extras when selling a place.
All the properties we sell feature taps, towel racks & glass in the windows. We also provide door handles as appropriate and all our rooms come with four walls.
If the purchaser wants something special, like a Plasma TV, we give them the address of the local Good Guys.
And if they want a holiday, we make them aware that they’re buying a new property, it’s just like going on holidays for the first few weeks.
If you can’t sell a place by reducing the price, you clearly haven’t reduced it far enough
Something you can think about is renting furnishings & plants to improve the appeal – however balance this against the cost of doing so.
Cheers,
Aceyducey
In theory, there is no difference between theory and practice. But, in practice, there is.– Jan L.A. van de Snepscheut
Sorry LeighK,
Don’t mean to sound negative but I have to agree with Aceyducy on this note and maybe you may need to reduce the price a bit more!!
As with most things which have “thrown in”s in the picture it always creates an air of supsicion!! Kinda like the steak knives on one of them infommercials!!
Pepper
Maybe, Pepper… but I think of it this way… I am going to check out some newish apartments- each have very little point of differentiation in terms of size, location, views, and no differentiation in price. So I am going to go and see Leigh’s first. Then check out others, but if they are really all the same, and price can be negotiated to the same level, I’ll buy Leigh’s.
Leigh, there will always be people telling others are unprofessional, amateurs, whatever… because people do different things than they do [baaa]but I am saying there are people like me in the market- who would be happy to buy with incentives. Marketing is all about points of differentiation. I think novel approaches are part of being “creative”. You can do what 99.9% of others are doing, or differentiate- and I reckon it would work.
It’s like saying “why don’t workplaces offer extra per year than a bonus?” But many people want the bonus at the end of the year- it has an emotional feel to it (plus a wage rise during the year, of course)
kay henry
Guess you must be a youngie Kay
and like many of todays Y Gen, marketing stats indicate that advertisers are finding that many of the marketing gimmicks aren’t working on this new breed so there having to resort to other more down-2-earth approaches of selling their wares!! Not saying they dont use any snazzy ploys, just that the old “steak knife” throw in just aint cuttin it as good baby!!Pepper
Well thanks for the humourous commentary Duece, hadn’t thought about including the glass … maybe that might just work.
In any case there is a definate minimum price we will accept not based on profit based on costs. So merely reducing the price is not always the solution. If I reduce it too much then they can’t have the glass!!!
It is as Kay says a case of there being 10 or so units available in the one building and the only differentiators are balconies (which we have) a carspace (don’t have) the front back or side of the building (we are front) and the level, they all fully furnished already. All priced similarly and I am sure negotiable similar amounts. So what is left, a carrot.
Fortunately we are not under pressure to sell but in order to maximise the velocity of our money I want to sell to do other deals.
Beside this thread isn’t just about me … oh yes it is .. nah seriously I just thought it would be interesting to see what could motivate you to buy.
Cheers
Leigh K[biggrin]<<<the velocity of our money>>>
Does the recent seminar have anything to do with this sale? You probably would have got more velocity if you had decided to sell 12 months ago when Steve and Dave started. Not now that they have decided to let the world know.
Oh well – there are always followers.
How big is the balcony, Leigh?
I’m asking this because although I love a balcony, some people might prefer to close in the balcony and use it as an extra small living area, such as a study, or a sunroom, or guestroom, or something. SO perhaps if you could get a council permit or something that allows the buyer to close in the balcony with windows, and this permit came with the deal, it wouldn’t cost you that much, and could attract more buyers.
Celivia
An ad with a headline like free holiday or free car may not persuade people to buy but it certainly makes the ad stand out. I think you can be sure that more people will read that ad than otherwise – the last time I saw that up here the local property writer jumped on the idea and gave it a whole column as well – purely because of the QLD holiday they were throwing in.
So in this regard it may well be worth considering…
All the best,
Simon Macks
Mortgage Broker
http://www.mortgagehunter.com.au
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Pepper “baby”
I’m late X-gen- 37, so I’m probably still of the steak knife generation I dunno about what’s been done for marketing RE… but I know that free things work for retail giants like Harvey Norman (buy a fridge and we’ll give you a toaster) and for other merchants (buty a stereo and we’ll give you a cabinet, DVD, whatever).Marketing and freebies has never much been done for property. the “free flights” to market IP’s- the two-tiered marketing ones… well, the pressure was on to buy the IP because the flight had been given. But I think if a vendor could show there’s no “catch” involved, then plenty of people would be interested.
Ya know, I always think… property is such an expensive item, that it wouldn’t kill those who could afford it, to chuck in a holiday with it.
And it’s like Amex giving out freebies or anyone else doing it- sheesh, it’s been done for years. Vive la difference, Leigh!
kay henry
Geez Louise Kay, you that old?? hehehe
Nah really whats the diff?? X, Y your only as old as you feel right??…Ahh dozen matta!! [biggrin]I agree free stuff works for a 1500 dollar fridge or DVD player, but not so sure it’ll offload the 200k unit!! If you make it a 2-for-1 deal I might reconsider!! [biggrin] Oh well guess no harm in tryin!!
Will keep fingers crossed for you Leigh!! [biggrin]
Pepper
and like many of todays Y Gen, marketing stats indicate that advertisers are finding that many of the marketing gimmicks aren’t working on this new breed so there having to resort to other more down-2-earth approaches of selling their wares!! Not saying they dont use any snazzy ploys, just that the old “steak knife” throw in just aint cuttin it as good baby!!
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