| In all the marketing activities developed by operators | | | | proceeds from the sale, |
| of Australian Retirement Village and Aged Care | | | | - The services of a professional organiser/ stylist |
| facilities, regardless of the location or style of the | | | | who is experienced with mature age vendors, to not |
| facility or the financial capacity of the targeted | | | | only declutter and tidy the home prior to sale, but |
| residents, the concerns of the market segment with | | | | with the inclusion of vouchers for furniture and plant |
| the highest potential ROI appear to be consistently | | | | hire, ensure the vendor's property is presented in the |
| ignored, or inadequately addressed. | | | | most marketable condition and appearance, |
| This is the segment, reportedly growing in size and | | | | - Referral to proven experts in the disposal of |
| level of frustration, who have logically accepted the | | | | personal effects via garage sales, ebay, newspaper |
| time is right for them to move into a Retirement | | | | ads or charities, |
| Village or Aged Care facility, but are reluctant to do | | | | - The services of a specialist relocation expert |
| so for a combination of financial and logistical reasons. | | | | removalist for the mature aged, to provide |
| Financially, they can't sell their current home for the | | | | reassurance and take care of all of the logistics of |
| price they believe it is worth, or the "change over" | | | | the move such as utilities and change of address |
| price to facilitate the investment in their retirement | | | | activities, |
| accommodation of choice, will require too high a | | | | - A genuine reduction on the selling fees negotiated |
| percentage of their current home equity. Logistically, | | | | with a choice of prominent Real Estate franchises, |
| the prospect of having to get organised and prepare | | | | - A genuine reduction on the fees charged by a |
| the family home for sale, and then relocate the | | | | choice of property conveyancers, |
| belongings acquired over their lifetime to less spacious | | | | - Vouchers for contractors to take care of painting |
| accommodation, makes procrastination an acceptable | | | | and garden maintenance. |
| outcome. | | | | The contribution by the Retirement Village or Aged |
| No decision continues to be the right decision. | | | | Care operator to the cost of a Package such as this |
| So, instead of the current rush to discount pricing, | | | | will be a relatively small percentage of its perceived |
| even if ineffectively disguised such as within the | | | | value, probably in the range of 25 to 50 cents in the |
| recent ad headline "Prices have been modified to | | | | dollar. Every dollar of price discount, or DMF |
| meet market values", or reworking already confusing | | | | reduction, affects profitability at 100 cents in the |
| DMF options, what is being proposed here is the | | | | dollar, now or in the future. |
| creation of a "Relocation Package" directed | | | | The persuasive arguments against discount pricing are |
| specifically at those potential residents who are | | | | well documented, but in most market downturns the |
| mentally ready to make the move to retirement | | | | rush to drop prices, regardless of the long term |
| accommodation, but for whom the financial numbers | | | | brand damage at individual operator and industry |
| don't add up, or the logistical problems seem | | | | level, seems irresistible to many. |
| insurmountable. | | | | Therefore the question remains. Are Retirement |
| The Relocation Package I'm proposing, which requires | | | | Village and Aged Care operators wishing to attract |
| a provider-specific marketable name, would be | | | | new residents better served by applying a margin |
| included at no additional charge in the financial | | | | reduction via a discount headline, or by targeting the |
| settlement with the new resident, and may include | | | | specific impediments confronting, and delaying, your |
| any combination of the following:- | | | | prospects? |
| - An independent valuation of the current home to | | | | The effectiveness of the price discount is clearly |
| ensure the property goes to market at an achievable | | | | evident in industry sales statistics. Surely the time is |
| price, which also provides the peace of mind the | | | | right to commit to a trial of the Relocation Package. |
| vendors are seeking that they are maximising the | | | | |