Perception is reality.
I once heard that the popular Peloton bikes were once half the price than they are now. At that price point, they had a really difficult time selling. After a re-brand and price increase they have now become the most popular at-home exercise brand on the market today.
How does RAISING the price actually help?
For starters, it invokes a quality that otherwise may not be assumed. Giving the product the gravitas- whether that’s a high price or shiny accoutrements- will help give it value. Something the consumer can see/touch/feel or at the very least, perceive.
There have been multiple times in my career that I’ve heard the question “why is this so cheap?” to which I’ve always smiled and taken pride in the notion that I was able to offer my customers a product for a value. I didn’t take into consideration that in essence, trying to sell something at a discount suggests the product has a deficiency. The customer then spent most of the showing trying to figure out what the issue was and why it was priced the way it was. Often times they’d point out insignificant things and start to pick the place apart- “ahh, this is why it’s so cheap…”
Keeping rents at the higher end of the market’s value will help you avoid having to advertise and sell something that people may see as a “discount product”. I’ve found that most people are happy paying market value for a product that’s worth it’s value. Several times I have adjusted pricing UPWARDS in efforts to drive traffic- and it’s worked.
Perception of value is real when speaking of apartment rentals. It’s up to the agent to be the sales person and communicate to the renter why the unit is priced the way it is and not try to explain why it’s “so cheap”.
Let’s take another look at your Brookline or Boston apartment together and be sure you’re getting the most out of it. Contact me, Adam Mundt, Broker//Owner at Kingston Real Estate & Management anytime for a consultation or a walk through! I can be reached any time on my mobile at 617-308-6338 or by email at firstname.lastname@example.org.