The challenge of strategizing, planning and launching a new property development is more complex today than ever before. There are 4 fundamental principles in the Divergent Principles that need to work together and in alignment to help new property projects scale to achieve market success during good and challenging times. The 4 dynamic elements of the Divergent Principles are “Actionable Insights”, “Winning Strategy”, “Strategic Pricing” and “Effective Execution”.
In the first part of our 2-part article series, we covered the first 2 principles – “Actionable Insights” and “Winning Strategy”. In this last part of this article series, we will explore the last 2 principles which are “Principle no. 3 – Strategic Pricing” and “Principle no. 4 – Effective Execution”.
Principle no. 3
Strategic pricing can enhance your revenue streams
Now that you have developed a differentiating strategy that sets you apart from the competition and looked into your unique value proposition that resonates with your target market, the next step is understand the demand for your product and conduct market research to identify the price range your target market is willing to pay for your product.
Analyse the costs involved in producing and delivering your product and work closely with your supply chain to pursue value engineering, design optimization or perhaps look at new technology in terms of design, materials and application to ensure that you can develop and build the project at the target cost and still earn a healthy profit margin.
Finally, set the price based on your unique value proposition, demand and cost structure. To secure a strong revenue stream for your development, you must set the right strategic price to attract your target market who will have a compelling ability to buy into your development to create irresistible market buzz.
When you identify what your buyers currently want and rethink how you can uniquely provide that value at a strategic price that is receptive to your market, it can open up a new market, create new demand and enhance your revenue streams.
Principle No. 4
Effective execution is the key to success
While most developers begin and end with a focus on tactical executions, make sure you don’t fall into the same trap. The road to having maximum brand impact with minimal marketing spend requires that your “Execution” principle be aligned with your strategic plans.
Without creating a strong connection between the two, you run the risk of wasting time, effort and money on projects that will never lead to the desired business results. Especially during challenging times, it is vital to keep the marriage between strategy and execution tightly in sync. This approach is essential for your new developments to stand out in a crowded marketplace against the backdrop of a fast-changing property landscape.
Conclusion
Are you planning a new property project? Make sure that you cover the 4 key areas outlined above to unlock the full potential of your land and property developments, regardless of market conditions.
About Ng Ching Yee (CY Ng)
CY Ng, an award-winning marketer, with over 25 years of distinguished experience in property marketing, has honed her expertise in strategic marketing, product marketing and demand generation, specializing in strategy and differentiation. This enables her to assist developers in maximizing sales and revenue growth, delivering customized solutions that are uniquely tailored to their specific needs and goals. CY Ng is the Founder & Chief Executive Officer of Divergent Strategy. Connect with CY on LinkedIn.
