Monday, December 5, 2011

Packages and pricing strategies

When home shoppers and home buyers have the chance to see all of a new home's options, the sheer number of choices can get overwhelming. Using Home Personalizer(tm), new home builders can present each room and all the options within those rooms in a detailed, option by option interactive experience but the the result could be staggering to serious shoppers. On the other hand, this comprehensive options layout can easily range into the hundreds of detailed options in the kitchen.

Now new home builders can help home shoppers and buyers deal with that overload by packaging several items together and making that new package a single option product. This isn't completely a new idea as many new home builders will offer one or more appliance packages that include all the separate appliances in the kitchen. Each one of several appliance packages may have a different set of components. For instance, one package might have a cook top and a separate oven but a different package will have a range with its own oven.
Home Personalizer(tm) supports those appliance packages but it doesn't stop there because Home Personalizer(tm) lets the home builder aggregate any number of features into a package. For instance, a professional range may be offered along with its matching cookware, pop up downdraft vent and rear splash. This kind of package makes selecting the entire cooking package easy for the home buyer. Everything that compliments the range is included in the package with a single click.

When it comes to pricing, it is up to the builder on how to handle the details of this range and accessories option product. One strategy is to offer the entire package at a single price. The buyer can inspect all the details about every accessory in the package and also read narratives that explain the benefits of each item in this package for the discriminating chef. The entire package is offered as a single product.

However, another package strategy is to price the accessories and the range separately and still offer the entire option product as a single product at a single price. This could be advantageous for both the home builder and the home buyer because the price of the items can be considered along with their benefits. It increases the transparency and that could make some buyers more comfortable about selecting that option product. Again, although the prices are shown separately, the buyer gets the advantage of choosing a list of items with a single click.

Still another strategy is to allow the buyer to not purchase some items in the package. For instance, the popup downdraft vent may not be needed if an over the range hood is a part of the kitchen design. In that case, the downdraft vent would have its own price and also have "No thanks" option which deletes the downdraft from the package and also removes its price from the full package price. This is a kind of hybrid package that allows for options within it.

Notice that this range and accessories package is just one example of a package in Home Personalizer(tm). Other examples could include many more components that don't need to be in the same product category which is appliances in this case. For instance, the appliances, plumbing, cabinets, counters and floors could all be brought together into a single package. Now new home shoppers and buyers can select an entire kitchen package from a list of kitchen packages. The builder would design each package with a particular design style or life style or price point in mind.

Again, presenting an entire roomful of features into a single option product makes home shopping easier but still retains all the flexibility of item by item option selection. And because all of this is on the public web, home shoppers can have the chance to explore Home Personalizer(tm) packages anytime and anywhere and not be limited to a design studio or other types of options marketing constraints.

In summary, Home Personalizer(tm) packages gives the new home builder and new home shopper the opportunity to get together about the details in a new home in a way that is comfortable and productive for both parties.

No comments: