Tuesday, February 11, 2014

Is Price Per SQFT Coming Back?


I drove by this sign last week while riding from Pinellas to Hillsborough. The big debate was going through my head.."Do I call this company and tell them to up their prices..or...Do I call them and remind them price per sqft ended in the 80's"

I figured I would just write to everyone and get some opinions.

For those of you who don't know price per square foot, I will give you a little back story.

During the good old Reagan years when interest rates were 18+% builders had several different home models, these models came with limited choices and could be figured out by the sqft price instead of calculating in all the different trades and selections. This was great for buyers that would pick A,B, or C.

In today's world with all the different choices, price per sqft doesn't work. Prospects will still try to ask about the sqft price and good contractors quickly explain.."It doesn't quite work that way..."

My local market, Tampa Bay Area you cant build for $90/sqft and make a living. Not possible, if I had to figure out per sqft on my last couple of deals, the median would be around $144.

Please tell me what I should do in this situation? I dont want these guy bringing this back to my market..

4 comments:

  1. First, don't laugh so hard. You could break something. Second, get it out of your mind and focus on your business. Third, if you are a praying man, ask God to restore a sound mind to that poor soul.

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    1. Pete-This put a laugh on my face, Great suggestions. I will pray for them.

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  2. There is a National Builder charging $70 and up depending on the home... Pisses me off really because people think all of us should build for that rate and quite honestly I have NO idea how in the world they do it!!!

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  3. In Edmonton Alberta We still have these price per square foot out there. Most of the time it is to just get the people in the door. Once there in the door it becomes plus the bath room plus the kitchen so on and so force. For us It is a way to distinguish the price shoppers and the quality shoppers. I check out there cheapest products and point them out to my sale people. Then we say we would never give you (our customer) this poor quality like some builders or industry standard. At that point we talk about after purchase service.

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