Comments on: Operations: Questioning assumptions (marketing, pricing, everything else)

By: Mark Juleen

Mark Juleen — Tue, 14 Apr 2009 02:50:57 +0000

Thanks for sharing my tweet. Lisa’s post was excellent, and it is right on for pricing. I like your description of “bundling” as I think this simplifies the idea. There is a better way to price our apartments, and all units don’t necessarily need to be the same. Thanks for the examples.

By: mfguide

mfguide — Tue, 14 Apr 2009 00:35:59 +0000

Lisa:
Thanks for stopping by and adding the note on seasonality; I completely overlooked it.

Your note on floorplan usability and psychology is spot on. I had an Indy property with a small 2nd BR that was just right for a toddler bed. By setting up a child focused mini-model, we were able to reassure prospects and leasing agents that it was a usable space. It worked so well we had 3 leases by the time I left town the following day.

By: Lisa Trosien

Lisa Trosien — Mon, 13 Apr 2009 23:55:03 +0000

Great post! I love that you used Mark’s Tweet and my remarks about negative amenity pricing to create this post.

You can also create pricing by seasonality. Who will pay more for a fireplace in ‘high July’ in the North? Not a lot of folks. But that pool view, which isn’t all that great in November, should have a premium in the Spring/Summer months. Yes, it takes more work, but it makes sense.

I’ve also found that many of the ‘objections’ to the floor plans and/or apartments that just ‘won’t sell’ are in the eyes of the salesperson. It’s no coincidence that many of our longest vacant units are the furthest away from the leasing office in our coldest and hottest months. Think about it.