Sales Comparison Approach : Sales Difference Approach

Complete a market segmentation of no more than 1,400 words for your buyers. Be sure to include the following:

II. Explore the supply and demand conditions for your firm’s product. a) Evaluate trends in demand over time, and explain their impact on the industry and the firm. You should consider including annual sales figures for the product your firm sells. b) Analyze information and data related to the demand and supply for your firm’s product(s) to support your recommendation for the firm’s actions. Remember to

The real estate division was estimated to have a fair value of $13,890,000. This was determined by totaling the number of lots expected to sell within the next four years and multiplying it by the price per lot of $180,000. After determining total lot sales, a 20% discount rate was applied as suggested by current market conditions. Given the unique nature of the real estate development, it is not believed that there are any comparable developments to find a market multiple.

After identifying the sales targets, the strategies, tactics and actions to achieve them can be worked on. Gluck (2014), mentions that to identify underlying strategies and increase sales, a business can break into a new market segment by adapting an existing product or boosting the average sale per customer by using add-on sales or upselling premium features. When developing the sales strategies, the market segment, customers' motivations and expectations, and the capacity to meet customers' expectations should be considered.

This case involves an investigation of the factors that affect the sale price of Oceanside condominium units. It represents an extension of an analysis of the same data by Herman Kelting (1979). Although condo sale prices have increased dramatically over the past 20 years, the relationship between these factors and sale price remain about the same. Consequently, the data provide valuable insight into today’s condominium sales market.

This case investigates the factors that are affecting the sale price of Oceanside condominium units. The relationship between these factors and sale price has remained the same despite condo sale prices increasing drastically over the past 20 years.

When trying to determine the correct price, a number of factors must be considered: the market and its segments, the size of each segment, the ability to reach each segment, what distribution channels to target, whether to vary price by segment, the usefulness of promotional offerings, and whether the goal is to skim or penetrate each market.

Carefully evaluate the pros and cons of the segment markets and determine the market where the product has definite advantages over other

Government policies and subsides have a sizable impact on property price, and demand. The government can temporarily boost demand with tax credits, deduction and subsidies. From the customers point of view

2. There are many ways to differentiate the product or service and many buyers perceive these differences as having value

A difficult characteristic to understand about the housing market is how a price is given for a particular house. That price will be designated to that particular house alone. All houses have various pricing, so I can’t always assume that one will cost more or less than any other. The pricing for houses vary based on their characteristics. Each characteristic must be analyzed to determine its contribution or detraction toward the price. I have taken some of these characteristics and modeled the relationship between them and the price of real estate for a specific area.

Our first method is being able to gauge our market/group of individuals on what type of

v Establish criteria, weighting’s, metrics to identify top 30% of opportunities to focus sales effort. Operations:

target markets with respects to that product. For this reason, in this report I picked

Data and alternatives 1. Describe data required in addition to the results of the demand and market study 2. Describe possible alternative sales and marketing programs b. Selection of sales programs and marketing strategy c. State reasons for selection of sales program 1. Detail the sales program 2. Presentation of the program (descriptively, using tables, graphs and maps as appropriate to show development throughout the life of the project) d. State reasons for selecting marketing strategy 1. Detail the marketing strategy 2. Presentation of marketing strategy 3. Product pricing 4. Promotional efforts during the pre-production and production stages 5. Organizational set-up of distribution and sales 6. Commissions or discounts on sales 7. After-sales facilities and services e. Estimate of sales revenue 1. Estimate annual sales revenues based on the sales program and marketing strategy f. Estimate of sales and distribution costs 1. Estimate of sales costs 2. Estimate of distribution costs