�
�
�
�
�
�
�
�
�
Add this page to your favorite Social Bookmarking websites
Clover: Confidence
By Bill Clover
President
Panorama International
We all get stuck occasionally. Stuck in the past, stuck with excess inventory, stuck on markets and marketing concepts that don't work anymore.
It may sound like a blinding flash of the obvious, but our industry is dependent on confidence, which has deeply eroded in the past few years. Buyers need to venture forth with confidence; financiers need to be confident in the market for product they are financing, and developers and the entire supporting cast have to be assured that both market and finance are in place in order to commit their balance sheet and reputation on a venture.
Confidence! This is one word we see over and over again. Why would a superheated market for expensive product disappear when the market becomes less expensive? There are a number of quick answers to that question. A deeper look shows that the market is still there. However, a lack of consumer confidence is standing between an interest in buying and a commitment to buy.
In a similar fashion, everyone agrees that financing becomes a reality only when the financier is confident that the market is proven--and what self respecting opportunist can go forward in confidence without proof that a market exists.
So we live in a vicious cycle with the key word being confidence, which intermingles with every element.
How then can we as professionals in the industry create that aura and reality of confidence sufficient to bring back a real market and to have that market supported with financing--and still be truthful? Advertizing and hype does not get us there; it can only spread the good word.
The answer is simplicity, truth, creativity and differentiating the product:
Simplicity: The world still needs a resort that will offer what is actually desired--not a developer's vision of what it wants, or a fantasy of what a PR person would like to see. A simple product in a clear cut presentation, but supported by amenities that are actually used, and activities that are compelling, all wrapped in an economic package that is irresistible. Just keep it simple and build what a consumer wants--not what the competition says they want.
Truth: Our new world demands the truth. Gone are the days when marketing people promising enormous capital gains can generate volume sales. Now developers determine what buyers want, and deliver precisely that, for a price and under terms and conditions that are fair for all parties. The "plus value" from capital gain will certainly occur, but it will happen from good value, as well as growth in future pricing.
Creativity: The goal is the perfect resort--the most attractive residential package--that attracts consumers. The overall presentation allows everyone to be a winner--the host country, the people in that country, the guest in hotels, the residents using the property in retirement or for second home use, the financier, and the developer and his supporting cast.
Differentiation: Everyone is seemingly chasing the same market. We have become an industry of sheep, following the latest trends and doing what everyone else is doing. Differentiation means being bold enough to venture forth with new ideas, new concepts and new methodology. But first you have to prove to yourself and your financial team that the differentiation will better the offering and increase your market demand.
How do we start on this new world? With market proof--which can only be built with a product people want to buy. Today's demand is for value, regardless of price range.
This does not mean that we as developers need to lose money to sell our product. It does mean that that we have to deliver superior quality for a reasonable price, terms and conditions. And it means the design of the product has to reflect actual market demand and absorption.
Bill Clover is president of Panorama International (www.panoramaintl.com), a 40-year old consultancy specializing in tourist and residential development
( 0 Votes )
Add this page to your favorite Social Bookmarking websites
