What is our strategy?
We need to find the delt disconnect or gap in the market. We believe this exists because current developers over price their developments while offering only limited or no interior design for their apartments and homes and are just concrete boxes. This is prominent with entry level and affordable housing but you could also include higher end luxury home markets. Purchasers normally have just enough for a mortgage with no remaining cash on hand for any extra interior design or internal renovation work. However, if they were able to have a mortgage and included the interior designed component they would be able to pay down the extra debt over time (subject to their mortgage approval) and herein is the delta or gap in the market which developers are not providing but represents an opportunity for others to fill. This is a very specific niche market, an upper middle market within the lower working class market existing in the lower entry level affordable housing market - a very specific boutique market.
Real profit margins can be made by adding design to the box. Purchasers don’t know what they want until you build it.
“People don’t know what they want until you show it to them. That’s why I never rely on marketing research. Our task is to read things that are not yet on the page”
Steve Jobs
The question we need to also ask is why would purchasers buy from us?
The answer to this basic question is because we create value for them: we need to create value for buyers. To achieve this we need to appeal to their emotions - we do this through creativity, design and beauty.
Emotions are generated from the heart and sometimes by-pass the logical pragmatic mind leading to decisions made by the heart. This defies the logic of value appealing more to emotions of the heart - and emotions of the heart can surpass inherent logic or bypass it altogether. It then becomes an emotional purchase. Our emotions can sometimes run away from us and become emotions of the heart.
In terms of investment we could be making more revenue but this isn’t just about the money although equally important and integral. Part of our philosophy is about simplicity, creativity, beauty and design to become more independent and prosperous ~ this defines our culture and corporate values. It also creates more value for purchasers.
Renaissance Merchant Capital
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