Pricing the product
A Bryant Homes case study

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Page 2: Objectives

Bryant Homes 4 Image 2Business specialists like to talk about the 4 Ps of the marketing mix - product, place, promotion and price. In examining how Bryant goes about pricing its houses, it is helpful to consider first the other 3 Ps. Bryant is able to price its products in the premium range because it offers some of the very best new homes (product), in attractive and sought after locations (place) and, of course, its promotional literature reflects this upmarket image.

Bryant builds and sells high quality homes. In 1997, for example, the company completed around 4,000 homes with an average sales price of £125,000. Bryant positions itself at the quality end of the market, offering individual homes built in the best locations. Bryant Homes has traditionally built homes to a lower density than its competitors in order to create a more relaxed feel to each development. Bryant is able to sell its homes at premium prices because of the competitive edge it has been able to secure through its products. This competitive edge is based on:

  • prime locations
  • highly individual products
  • prime specifications
  • attractive layouts.

Prime locations - Bryant takes as much care over where homes are built as it does over how homes are built. This means creating select developments in prime locations, taking into account schools, easy access to shops, local amenities and good links to the communications network.

Highly individual products – Every home is as individual as its owner. Bryant Homes realised the importance of flexible living areas after regular consultations with potential customers and current designs take this into account. Externally, Bryant varies brick with stone and render, uses a wide range of roof materials, differing roof heights and plot positions to create homes of distinctive character. The latest homes make wide use of guest en suite, family rooms, garden rooms and have well fitted kitchens and bedrooms. In fact, all three-bedroom homes now have en suite facilities and some four bedroom homes have access to a bathroom from every bedroom.

Bryant Homes 4 Image 6Prime specifications - In 1995, Bryant decided to gain a clear and ongoing advantage over rivals by building more elaborately planned and designed houses with additional features. Bryant’s prime specifications have enabled the company to achieve a superior sales performance relative to the competition. Attractive site layouts - Bryant gives every residence as much privacy and individual space as possible. Clusters of homes are situated on ‘meandering’ avenues rather than straight roads. Bryant takes great care to preserve mature trees and hedgerows to produce a pleasant living environment with an ‘established’ feel.

A key objective of Bryant Homes, therefore, is to guard its status as a high quality provider of housing. The result of this success is that the organisation is able to command higher than average gross margins on sales.

New homes

There are all sorts of reasons why customers buy new homes from Bryant, only a few of which are listed below:

  • everything is brand new - no decorating is required
  • no renovation or refurbishment is required
  • the customer can personalise their new home by choosing kitchen tiles etc.
  • everything about the homes is completed to a high specification
  • homes are energy efficient – high insulation standards mean that heating bills can be 50% lower than comparable sized homes built in the 1930s
  • better security is provided through double glazing, modern locks and smoke alarms which are ready fitted
  • the home carries a ten year warranty
  • all the appliances in the home are guaranteed
  • modern developments are safer for young children with winding roads and traffic calming devices
  • new homes reflect today’s lifestyles - en suites, downstairs cloakrooms, guest suites etc.
  • there are many styles of homes to choose from. Market research in 1995 showed that generally purchasers liked the light and airy feel of new homes and saw them as hassle free, cheap and easy to run.

Bryant Homes | Pricing the product