Survival tricks for small developers

Yes,it is difficult to compete with high profile ‘brand’ names. A developer derives numerous advantages from his brand name and brand image. He is automatically clubbed amongst the most reputable professionals in the field,wields considerable clout with financiers,and can attach higher rates to his projects. However,the brand name does not come from nowhere – a reputed developer’s projects sell well on the basis of reliable construction,imaginative design,provision of desirable amenities,good project locations and honesty in dealings.

In the light of this,a smaller developer should concentrate on making his project sell rather than on building an ‘image’. In the real estate line,an image is often based on how well one’s projects sell. To begin with,that should be the primary focus. Initially,this may mean offering lower rates on first projects rather than losing customers. It may mean agreeing to payment terms that are more oriented to the customer’s convenience than those of the builder.

While established developers have an advantage with selling their projects,a smaller,new developer can beat the odds even if his project shares the same locality with that of a major name. He might have to offer a degree of service that most other builders would not even consider rendering. This might mean cutting down on the time it usually takes to complete legal formalities,answering inquiries promptly,etc.

He should also develop the personal touch in attending to serious enquiries. Rather than delegating this aspect of a potential transaction to underlings,he should make personal telephone calls,use his personal email ID to answer mail or take time off to explain some of the technicalities of the property market to prospective customers. Buyers respond very favorably to such personal attention by a developer.

There is no sure-fire,catchall modus operandi as far as success on the real estate market is concerned. It might work that way some of the time,but not always. Special situations call for special measures. In every critical marketing situation,the solution lies in ‘lateral thinking’ – taking a chance with uniquely different approaches.

Tried-and-tested formulas of promotion and sale do not always work. Effective real estate consultants turn around the fortunes of ailing projects and developers by virtue of creative and innovative ideas. Once the concept of ‘thinking out of the box’ is understood,effective ideas to tackle most market contingencies come automatically. l

The writer is Chairman & Country Head,Jones Lang LaSalle Meghraj