In all the marketing activities developed by operators of Australian Retirement Village and Aged Care facilities, regardless of the location or style of the facility or the financial capacity of the targeted residents, the concerns of the market segment with the highest potential ROI appear to be consistently ignored, or inadequately addressed.Get the facts about-retirement apartments.
This is the segment, reportedly growing in size and level of frustration, who have logically accepted the time is right for them to move into a Retirement Village or Aged Care facility, but are reluctant to do so for a combination of financial and logistical reasons. Financially, they can’t sell their current home for the price they believe it is worth, or the “change over” price to facilitate the investment in their retirement accommodation of choice, will require too high a percentage of their current home equity. Logistically, the prospect of having to get organised and prepare the family home for sale, and then relocate the belongings acquired over their lifetime to less spacious accommodation, makes procrastination an acceptable outcome.
No decision continues to be the right decision. So, instead of the current rush to discount pricing, even if ineffectively disguised such as within the recent ad headline “Prices have been modified to meet market values”, or reworking already confusing DMF options, what is being proposed here is the creation of a “Relocation Package” directed specifically at those potential residents who are mentally ready to make the move to retirement accommodation, but for whom the financial numbers don’t add up, or the logistical problems seem insurmountable. The Relocation Package I’m proposing, which requires a provider-specific marketable name, would be included at no additional charge in the financial settlement with the new resident, and may include any combination of the following:-
-An independent valuation of the current home to ensure the property goes to market at an achievable price, which also provides the peace of mind the vendors are seeking that they are maximising the proceeds from the sale,
-The services of a professional organiser/ stylist who is experienced with mature age vendors, to not only declutter and tidy the home prior to sale, but with the inclusion of vouchers for furniture and plant hire, ensure the vendor’s property is presented in the most marketable condition and appearance,
-Referral to proven experts in the disposal of personal effects via garage sales, ebay, newspaper ads or charities,
-The services of a specialist relocation expert/removalist for the mature aged, to provide reassurance and take care of all of the logistics of the move such as utilities and change of address activities,
-A genuine reduction on the selling fees negotiated with a choice of prominent Real Estate franchises,
-A genuine reduction on the fees charged by a choice of property conveyancers,
-Vouchers for contractors to take care of painting and garden maintenance.
The contribution by the Retirement Village or Aged Care operator to the cost of a Package such as this will be a relatively small percentage of its perceived value, probably in the range of 25 to 50 cents in the dollar. Every dollar of price discount, or DMF reduction, affects profitability at 100 cents in the dollar, now or in the future. The persuasive arguments against discount pricing are well documented, but in most market downturns the rush to drop prices, regardless of the long term brand damage at individual operator and industry level, seems irresistible to many.