Consumer Input Results in Revised Pricing and Fast Presales
In 2014, Love & Company conducted a strategic opportunities analysis in which we evaluated all facets of the community relative to its competitors, including independent living residences, amenities, pricing, contracts, health care and more. Based on this analysis, Broadmead initiated a master planning process with the goal of significantly reinventing the community’s health care, fitness and wellness, and independent living offerings. Once the initial expansion plans were completed, Love & Company was engaged to conduct consumer research to validate that the project would sell in Broadmead’s market.
To answer the question of whether the project would sell, Love & Company conducted community research events during which we presented the conceptual plans and pricing to nearly 150 wait list members, lead base members and age- and income-qualified prospects. While all groups responded favorably to the plans, they felt the price points were quite high.
Love & Company and Broadmead then worked with the architect to adjust the sizes of the new residences so that the new plans still met the needs and expectations of current prospects while reducing entrance fees by an average of nearly $50,000 and monthly service fees by an average of nearly $500.
When the 52 new residences were ready to begin taking 10% deposits in early 2018, Broadmead’s sales team sold 92% of them in only four months, dramatically reducing the project’s presales timeline.
The consumer research helped ensure the project was appropriately priced and positioned for success. The new residences and several new amenity areas are scheduled to be completed in 2020.