Jill Friday - Pricing Like a Seven-Year-Old (LA 1856)
Transcript:
Steven Jack Butala:
Steve and Jill here.
Jill DeWit:
Hello.
Steven Jack Butala:
Welcome to the Land Academy Show, entertaining land investment talk. I'm Steven Jack Butala.
Jill DeWit:
And I am Jill DeWit, broadcasting from the valley of the loyal sports fans. We have the Brewers, we have the Packers, and we have the Bucks. You think I'm kidding?
Steven Jack Butala:
No, we're not kidding.
Jill DeWit:
We have, in the days that we have been here, seen some amazing, awesome, loyal, crazy fans, in a good way crazy.
Steven Jack Butala:
And some real estate too.
Jill DeWit:
Oh yeah, that too.
Steven Jack Butala:
Some great real estate.
Jill DeWit:
Do you think they picked the green because everything else is so green?
Steven Jack Butala:
Yeah.
Jill DeWit:
Okay.
Steven Jack Butala:
I do.
Jill DeWit:
Okay.
Steven Jack Butala:
Jill's from Southern California where everything's brown.
Jill DeWit:
Yeah.
Steven Jack Butala:
So she's getting a good taste of Fall green and some colors changing.
Jill DeWit:
These are what trees are supposed to look like.
Steven Jack Butala:
Yeah. This is what nature looks like Jill.
Jill DeWit:
I didn't know that.
Steven Jack Butala:
Not in a desert.
Jill DeWit:
Sorry. That painted wall with the cow on it, isn't that the same thing?
Steven Jack Butala:
Today's still Friday. She's going to talk about pricing like a seven year old.
Before we get into it, let's take a question posted by one of our members on the landinvestors.com online community. It's free. And I want to tell you about a time back in the day when it was impossible to find land that didn't have a post office address, like 123 Main Street. People don't assign properties an address until they want to do something with them. So all you have is an assessor's parcel number and a state and the county that it's in. Well, it was very hard to find property. We solved it. We wrote, we commissioned parcelfact.com. So where you can just type in the state, the county, the APN, right when you're on the phone with the seller and find out a lot about the property. Enough to know anyway, really quickly whether or not you want the deal to continue or stop right there.
Jill DeWit:
Exactly.
Steven Jack Butala:
Check it out. parcelfact.com. We're proud of it.
Jill DeWit:
Cool. All right, back to the question.
Mark wrote, "My partner and I are looking at mailer pricing. We are using concierge data to scrub and send the mailer. We're using many counties next to each other to get enough properties to do the mailer. The prices per acre very considerably on the different counties. Any thoughts on how to price?"
Steven Jack Butala:
Absolutely. At the end of concierge data, you'll get the entire mailer file back in Excel. Just like we teach, it's nothing out of the ordinary at all. Just like we teach in chapters three and four of the of Land Academy 3.0. And you have to assign a pricing scenario, usually a percentage of resale, 25%, 30% or whatever number you choose. And it can vary widely from county to county, state to state and certainly zip code to zip code.
So, what we do is we enable a concept called testing for reason, which is not my concept at all, it's actually an accounting concept where you test for reasons. So what we do, just like on the Thursday call, you have to ask yourself this question, "If this mailer came back priced just like this, would I buy it?" That's testing for reason. And if so, at 25%, if you're saying, "Heck yes, I would absolutely buy it." At 30%, "Yeah I still would buy it." At 40%, "I'm not so sure." Then maybe 30%, so I should price the mailer. And I go over this in great detail all the time on a Thursday, we have a weekly Thursday webinar call where everybody in the whole group gets together, throws a bunch of deals at Jill and I and we say, "Yeah, you should absolutely do this deal," or "Well wait a minute."
Jill DeWit:
And here's why,
