Adrian Newman’s latest ‘e-Wealth Daily’ article in ‘Weekend Success Bulletin’ is titled “Make Sure The Price Is Right And The Right Customers Should Follow”. [Adrian Newman’s Article]

Adrian Newman’s latest ‘e-Wealth Daily’ article:

Make Sure The Price Is Right And The Right Customers Should Follow

I was at my local watering hole this St. Patrick’s Day, chatting with my friend over a couple of green beers and a plate of soda bread.

The topic turned to real estate. He is looking to move and has recently been house-hunting. The problem is, he’s getting absolutely nowhere, because the market in his area is loaded with underpriced properties that are priced to ignite a bidding war.

Here’s an example of one of his experiences:

He saw a home he and his wife liked and decided to make an offer. Their offer was about two percent less than the asking price for the home, yet they were prepared to pay slightly above the asking price if it came to that.

Their offer, the only offer, was presented to the owners, who were, as their real estate agent put it, insulted. When asked what price they were looking for, my friend was told that they wanted 20% above what their asking price was.

Obviously my friend said “no thanks” and that house is still sitting on the market.

This kind of activity is commonplace in a hot real estate market. A house is underpriced to generate interest to get multiple bids. Because of the competition, the bidders will raise their bids in hopes to be the winning bid on the property.

The risk to the seller is that you only get one bid and, while you don’t have to accept the offer, you’ve pretty much backed yourself into a corner if you need to sell, because you now know there’s limited interest in your home, even at such a low price.

So the key to success for any sale is to know the market, know the competition, and be fair in your pricing.

If you deal in an industry like real estate or any other type of business that involves some sort of bidding process, you have to make sure that you are pricing your product or service in the same general area the consumer you want to buy it is looking in.

It’s okay to under-price to get interest. However, look at your potential customer in different tiers and try not to move your price to include more than one tier.

For example, let’s say you’re trying to sell a house and you ideally want $300,000 for it. However, you want to under-price it so you can get multiple bids. Do some research and determine the kind of potential customer you want. Ideally, you’d find someone who is looking for a home in the $290,000 to $325,000 range. Using this, you could probably price the home at $285,000 and get some interest from those parties. However, dropping down to $220,000 is going to get you a whole different kind of buyer, all of them virtually guaranteed not to want to pay $300,000 for your home.

So, remember to find that target market and set your price to attract the clientele that you want. It makes no sense for a fine-dining restaurant to advertise $2 cheeseburgers just to get interest up, right? They’ll be getting lots of interest, but when they realize that the only thing on the menu customers can afford is the cheeseburger, they also realize that they’re not really doing their business a favor.

So make sure the price is right and the right customers should follow.

Sincerely,
Adrian Newman
Founder, e-Wealth Daily
http://www.ewealthdaily.com

About e-Wealth Daily

The e-Wealth Daily Bulletin brings you daily tips, advice and breaking news related to home businesses, small businesses and internet marketing. Our team of experts gives you the information you need to take your business pursuits to the most profitable level. Founded by Adrian Newman in 2003, the e-Wealth Daily Bulletin andwww.ewealthdaily.com are a division of Lombardi Publishing with online newsletters reaching over 100,000 subscribers each month.

* IMNewsWatch would like to thank e-Wealth Daily for granting permission to reprint this article.

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