How to apply distribution strategy and pricing strategy to real estate?

Distribution channels refer to all enterprises and individuals that acquire the ownership of certain goods and services or help transfer their ownership when they move from producers to consumers. It mainly includes merchant middlemen, agent middlemen, and producers and consumers at the beginning and end of the channel. Under the condition of commodity economy, products must move in the form of value through exchange, so that products can be transferred from one owner to another until they reach consumers. This is called business flow. At the same time, with business flow, there is also the spatial movement of product entities, which is called logistics. The combination of business flow and logistics makes products reach consumers from producers, which is the distribution channel or distribution way.

pricing strategy is a key component of marketing mix. Price is usually an important factor affecting the success or failure of a transaction, and it is also the most difficult factor to determine in the marketing mix. The goal of enterprise pricing is to promote sales and gain profits. This requires enterprises to consider not only the cost compensation, but also the consumer's ability to accept the price, so that the pricing strategy has the characteristics of two-way decision-making between buyers and sellers. In addition, the price is the most flexible factor in the marketing mix, which can make a sensitive response to the market.

1. Pricing strategy

Generally speaking, the total market supply and demand and competitors' prices are only reference, while cost and consumers are the fundamental factors that determine the pricing strategy. After in-depth analysis, we can find that cost+competition and consumer+competition are two basic strategies for real estate pricing.

the decision-making process of cost+competitive pricing strategy is roughly as follows: calculating the total project cost → detecting the price of competitors → adding the expected profit (with different proportions according to different objectives) → obtaining the price of this building.

the decision-making process of consumer+competitive pricing strategy is: what are the properties and prices provided by competitors → investigate the development of properties differentiated from competitors in this lot, and what kind of properties consumers will be willing to accept at what price after adjusting various price variables → what kind of properties to develop, how to develop and achieve strategic goals → the final specific price of this property.

Obviously, at present, most developers choose the cost+competitive pricing strategy, because it is the simplest and easiest, because it can "know clearly how much profit they can make", and because most developers only consider the price when the house is built and ready for sale. But from the above comparison, we can see that this is a typical "product-oriented" strategy, which is not in line with the market development trend, because it contains two risks: first, the risk of unsalable products with excessive pricing. In the buyer's market, consumers are the main body of the market, but this pricing model excludes consumers from the price system. The reality is that only when consumers think that they can get relative or even excessive value by paying the price can the transaction become a reality. Once there are designs and buildings that can't effectively meet the needs and desires of consumers, the price set by the cost+profit method can only be a "virtual price", which can't get consumers' response, so the products are unsalable, so the expected profit when setting the price. Secondly, it is the risk that it is difficult to win ultra-high profits if the price is too low. At present, the real estate market is a market that has developed rapidly since it started, and the gap between consumption levels is getting bigger and bigger. Therefore, we can often rely on new planning concepts, new architectural design, new apartment design, innovative community environment creation, new building materials, and new technology application to establish a completely different image from popular products in the market, and bring special added value to consumers, and enterprises can easily win super-high profits, but this pricing model takes products as the center and costs as the starting point.

the biggest advantage of the consumer+competitive pricing strategy is that it takes consumers' potential psychological acceptance of the price as the starting point and competitors as the reference, so no matter planning, design, building, apartment layout, supporting and marketing are based on the principle of meeting consumers' needs, and always pay attention to distinguishing or following competitors, so various measures, means and processes to achieve development goals (high profits or quick withdrawal of funds) are always in a controllable state, which can achieve development efficiency.

However, this pricing strategy requires developers to have an open mind centered on the market and consumers, and to realize that price is a systematic strategy that is interrelated with products, markets, sales, image and publicity. It requires a lot of professional research in the early stage and a large number of management talents with both professional and market knowledge. Therefore, among domestic developers at present, Only the big developers in Vanke, Shenzhen Jintian, China Merchants, OCT, Beijing Zhonghongtian, Guangzhou Jinye, Shanghai Huachen and other big markets can do it, but in turn, starting from the market and starting from consumers are the main reasons for their repeated success.

second, price strategy

price strategy is a key link in real estate marketing that is related to the success or failure of the project. Even if everyone is pricing in the mode of cost+competition or consumer+competition, different development goals will be made by different people and different styles of developers. We can simply divide it into three categories: silver should be sold at the price of gold, gold should only be sold at the price of silver, and gold must be sold at a "real price" whether it is gold, silver or silver.

"Selling gold for silver" is of course the dream of most developers, because it can maximize profits, and it is the nature of businessmen to pursue profits. In the current immature but extremely rapid market environment, while the demand gap at the consumer level is widening and there is not much real "gold", it is not difficult to achieve this, but it is not completely impossible.

To achieve this, we must first make "silver has some qualities of gold", that is, we need to endow the real estate with some high-level and high-quality elements, such as innovative planning and design, innovative huxing, innovative materials application, innovative scientific and technological achievements application, etc. Although these inputs do not require the price of "gold", they make the real estate have the inherent advantages of leading competitors, and thus have the "golden quality". Secondly, we must make "silver look like gold". This requires superb building image and store packaging skills, and must make the building look more noble and elegant than competitors in terms of external image, communication image and store image. Finally, consumers must be convinced that the real estate has the value equivalent to "gold", which requires large-scale, high-standard, high-level news hype, integration and promotion to convince consumers.

the benefits of selling silver at the price of gold are self-evident-you only need to complete 5-6% of the sale to get a good profit, and once it is sold to 9%, it really makes a lot of money. However, in today's increasingly competitive market environment, this strategy is more and more difficult and the risk coefficient is higher and higher. It is only suitable for enterprises with particularly strong internal management and control ability and full of innovative spirit and ability.

In recent years, a few developers have found that "profit maximization" brings about the reduction of financing cost and the improvement of capital efficiency. Sometimes they treat "gold" lightly, but the gains they get are often unexpected. So some people took the initiative to choose to "sell gold as silver." Because of "value for money", it is not difficult to achieve 1% sales as long as there are correct communication strategies to make the target consumers realize that this is a piece of gold. There are not a few such examples. This strategy is especially suitable for enterprises that need to withdraw funds quickly or have a strong demand for market share for special strategic goals. After all, it is difficult to make a decision of "having money but not earning".

Although the vast majority of developers hope to earn the highest profit, in reality, most developers choose a relatively down-to-earth strategy: "Gold is gold, silver and silver", which is worth the money. After all, this is a prudent strategy with little risk and no small profit. However, this "caught in the middle" strategy also has its disadvantages: the sales cycle is long, so the risk of control failure in the sales process is not small; A low price is not only dull, but also not conducive to establishing a company image. It is difficult to gather popularity and quickly complete sales. Once sales encounter resistance, the market will be unacceptable because of price increase, and price reduction will damage the company's brand and fall into embarrassment.

Of course, the most powerful strategy is to make the real estate "look like gold" through packaging, but only sell the price of silver, "squeeze out the water in the price as much as possible", so that the price can return to value as much as possible, so that developers can make profits and consumers are willing to accept it. This requires full, professional and powerful planning.