You're the marketing director for a desperate Phoenix homebuilder with tons of dead inventory sitting there now that your cancellation rate has soared to 50% and you're still finishing up the houses you can't stop.
So, here's your marketing budget per home - what do you offer to try to sucker someone into buying your mistake? Assume the original list price was $300,000.
A: $10 in McDonald's coupons for the realtor to buy some food - they haven't eaten in awhile
B: Free Botox injections for the realtor - you're going to start to see some really sad cases as realtors won't be able to keep up their injection schedules anymore. Housing may be falling but now so will realtor faces
C: $10,000 worth of free gas - since you're trying to sell a house 50 miles out of Phoenix in Maricopa, that homedebtor is gonna have to get there somehow, but won't be able to afford gas even with the no-down, no-doc you'll put him into
D: Sit at home and watch TV on us!! "We'll pay you a $100,000 salary for a year" incentive for the last sucker in
Anyone see the problem with these incentives? All they're really doing is spending the homedebtor's own money, while keeping the year over year comparisons and "comps" looking good in those NAR and government reports. And they allow the realtor to earn their commission on the full price, vs. the true discounted price. Shameful.
November 26, 2006
You'll see below a stupid homebuilder trying to sucker homedebtors into buying a debt bomb with a pizza. What should they be offering?
Posted by blogger at 11/26/2006