Chapter 47: You Can Earn Money If You Know How to Spend
"Don't be nervous, just tell me what you think." Lin Ruoyan soothed softly.
This was the boss's own request. Could he really just do whatever he wanted? Anyway, he'd made up his mind. He'd waited this long, so he might as well just let out all those crazy ideas he'd had in the past, the things his boss would never dare let him do. Just to satisfy his urge to talk.
Years of sales experience and an honest and steady appearance gave Lu Gan a natural sense of credibility. While all those crazy ideas were swirling through his mind, he remained serious and said, "Since we're selling a luxury home, the initial investment is absolutely essential. The money we spend now will be earned back hundreds or even thousands of times in the future."
Someone Lin Ruoyan had previously asked had made a similar claim, but it was just a literal gimmick, and the rest of the conversation was about saving money. Even the expert who sold a hundred houses a month was just offering discounts and promotions. After all, what boss wants to spend more? The key is to spend less and get more done.
“To make an item worthy of the price set for it, it needs an environment to set it off. For example, if you were selling diamond rings by placing a few on ordinary rags of paper at a street stall, how much would you think they were worth? They could really be mistaken for fake glass items. But if you were to place them on the first floor of a luxury shopping mall, surrounded by shops selling gold, silver, and jewelry, and put a carved wooden box with velvet lining inside, and turn on the spotlights, it would shine brightly. There would be only one such diamond ring in the entire shelf, and it would be marked with the most expensive price in the store. Even if it was a fake, it could be sold at a high price.” Lu Gan was still very restrained when he said this, but he could also see that the boss was not satisfied with such a simple analogy.
Lin Ruoyan went straight to the point: "So, how much do you plan to spend on marketing? My company sells luxury homes. The production cycle is long, the price is high, and they are not aimed at the general public, so the customer base is naturally small."
Lu Gan smiled slightly, thinking he knew the key points, and asked back: "Then may I ask, Boss, how much do you plan to sell this house for? How much per square meter?"
"Just now, a candidate said that the self-proclaimed luxury homes on the market are priced at a maximum of 30,000 yuan per square meter. But..." Lin Ruoyan was actually very dissatisfied with this figure, even though the candidate said that as long as he was allowed to market it, he could sell it at 40,000 yuan per square meter.
But in the real world of Beijing, even homes outside the Sixth Ring Road cost over 40,000 yuan. She felt it would be a huge loss to sell the house too cheaply. She might not even see the day the pre-sale permit was issued, so a sales plan had to be finalized in advance to avoid a loss after she was gone. To do that, she needed a marketing director who would not only invest upfront but also insist on selling the house at a premium.
"Fifty to sixty thousand per square meter when it opens." Lin Ruoyan made the request as conservatively as possible.
Upon hearing this, Lu Gan wondered if his boss was going crazy too. Had some candidate already set a trap, waiting for someone to jump in? The only properties on the market that sold for 30,000 yuan apiece were large villas with land and land. This project clearly didn't have the credentials to build a large villa, yet they were charging such a high price – were they trying to steal the money? Fine, then he'd join in the madness. After all, it was just to satisfy his own desire, and he wasn't the one selling it.
He accepted the offer without blinking. "Okay, based on the plot ratio of that land, we roughly estimate there's 100,000 square meters of sales area, which should mean at least 5 billion in sales. I plan to spend 100 million on marketing expenses, and that doesn't include the sales staff's commissions."
Lin Ruoyan's eyes lit up when she heard this. All the previous candidates had said the highest initial costs were only 10 or 20 million. After all, everyone would compare it to the 80 million yuan spent on buying the land. Could the marketing costs even be higher than the land price? Was this just asking a god to sell the house?
Only after Lu Gan finished speaking did he realize that sales alone shouldn't be the only factor. The inflated sales figures, even if they were proposed by the boss, seemed a bit unreasonable. Marketing costs were more expensive than buying land. Who could believe that?
But he'd already blown all the bullshit, so what if he was just setting a trap for the future marketing director? He couldn't possibly achieve 5 billion in sales for a 100,000 square meter project. But faking it wasn't hard; it just took some talking now, heh heh!
When people feel hopeless and think that these things are happening to their imaginary enemies, they will become particularly relaxed and full of creativity.
Lu Gan was just like that, turning the grievances and resentments that had weighed on his heart for years into ideas for spending money. So what if he just mentioned 100 million? He could just come up with an idea off the top of his head.
Without waiting for Mr. Lin to ask, he spoke freely, "Actually, one hundred million may not be enough."
Isn't it just making it up? Just add a zero to the reasonable data.
"First, we need to find a place to build a sales office. We can't use the project's own land. That place is already smoky and remote, and the surrounding environment is dirty and messy, which will easily lower customer expectations. So we must find a beautiful environment and convenient transportation to build a new sales office. Even if we are not selling villas, we must give people the impression that they are villa quality. The budget for renting land and building a temporary structure starts at 30 million. If we invest in real materials for renovation and have several different apartment types, the cost will be at least 10 or 20 million. That's 50 million."
Lin Ruoyan was ecstatic in her heart, but she tried to keep a tense expression on her face. After all, she couldn't let the candidate see that she was deliberately catering to his preferences.
Seeing that the boss remained calm, Lu Gan thought that what he said was not exaggerated enough, so he continued to add: "We can't save on publicity costs. Since the customer base is not ordinary people on the street, the publicity method cannot be overwhelming TV commercials or those small paper advertisements. They are too low-level and vulgar.
Those who can afford luxury homes drive private cars and fly business class or higher on planes and trains. Therefore, advertising should be printed in niche newspapers and magazines typically reserved for first-class passengers. Alternatively, advertisements can be featured in color pages at the end of auction brochures, and related souvenirs can be displayed at high-end gatherings and charity events. Furthermore, advertising should be done by renting long-term booths near luxury stores in luxury car dealerships and high-end shopping malls. In short, advertising should be focused on attracting people within wealthy circles, especially those who rarely visit.
Lin Ruoyan nodded. The venue rental and advertising fees were not low, and the long-term rental of the mall booth alone was a stable expense. Why hadn't she thought of this before? Lu Gan was a talent!
"There are also thresholds that must be set manually. A dedicated phone line, like the one with the number 8, is available 24 hours a day. Regardless of whether the property is occupied or not, reservations must be made a week in advance. Only one group of clients is allowed per time slot, and the number of accompanying personnel must be greater than the number of clients, fully demonstrating the client's status. Furthermore, capital verification is required before viewing the property, so not just anyone can enter the model unit. This is the only way to screen out the truly sincere clients."
The gifts and printed materials given to visitors must be extremely high-quality, costing thousands of yuan each, and must be exceptionally detailed to match the status of the recipient. These aren't the eggs, rice, flour, and oil you'd find at a typical sales office. These materials cost millions. Then there are the PR costs and celebrity endorsements. All of these tactics require significant investment.
Lu Gan didn't even blink, and just spoke casually, and spent 100 million easily.
One hundred million was spent so easily? Lin Ruoyan was surprised and believed it, her heart surging when she heard it.
Continue read on readnovelmtl.com
