Thanks Beagle, very well put. Pricing low leading to revenue damage and brand damage from being seen as "cheap' in the market will do them no good. Let's hope Brent gets this dealt to quick smart.
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Thanks Beagle, very well put. Pricing low leading to revenue damage and brand damage from being seen as "cheap' in the market will do them no good. Let's hope Brent gets this dealt to quick smart.
Maybe now is the true inflection point with new leader/management and new focus (hopefully) on sale prices and costs :eek2:
i thought this was the best run company ever going over the thread?
Ok that's a fair point and not something I actually thought about before I posted . Although I'd say average occupancy length is more important to DMF than say a 5 to 10 percent increase in price.
Dont get me wrong, the best for shareholders is to be charging a market price. I am just trying to point out rest homes arent your typical property development business.
Even allowing for the so-called ‘mix’ impacts this chart from half year preso didn’t seem quite right at the time .....and maybe confirms what we are talking about
Not sure if you have the time or inclination Winner but it would be interesting to do a chart comparing those selling prices above with the mid point for the relevant period (Sept 2020 for the most recent half year) of the national average market price of houses to track what percentage of the national average price the various types units have been selling for and see what the deterioration in percentage has been.
e.g. Sept 2020 roughly mid point of 1H F21 year national average price was $685K whereas in February 2021 it was $780K so a ~ 14% increase in just 5 months.
I think in the current environment there needs to be firstly an annual pricing change for OCA units effective immediately of circa 23% to account for the movement in the national average price year on year to February 2021 and then quarterly changes from here to ensure they are keeping pace with the market. Their marketing needs to focus more on the benefits of village life and a LOT less on their pricing, (its expensive to live in N.Z. no matter what housing solution you choose including renting, that's just how it is). The standard of care should be forefront in their marketing, lifestyle aspects, camaraderie and companionship with other residents, fixed fees for life, you can bring your pet...all that sort of thing...not price.