Wanda Jinhua City Real Estate Projects, Pricing Strategy Research

Real estate is a special commodity, and its pricing is one of the hottest topics in the academic field and corporate practice. Market economy requires enterprises to respond to prices in an agile, scientific and quick way. Thus, it is of critical importance for enterprises to establish a scientifically effective pricing strategy. Based on the considerations mentioned above, a systematic study of real estate pricing strategy is presented in this paper using the example of"Wanda the City of beauty"(the First Version), a real estate developed by Wanda Group Chengdu Project Company.First, the background and practical indication of real estate pricing are introduced: Second, pricing theories and methods was presented. Third, detailed analysis of the market environment of the project,"Wanda the City of beauty"(the First Version), is conducted, as it is the foundation and perquisite of project pricing, with an emphasis on the SWOT analysis. Regarding pricing strategy, competitive pricing, a popular pricing strategy adopted by real estate industry, is analyzed. Then a real estate pricing model based on customer value theory designed. Data analysis and further discussion of the models are made, and the optimum price and the maximum expected revenue of the real estate developer are arrived at. Meanwhile, a comparison is made between the competing pricing and the model. Finally, it is concluded that the pricing strategy based on customer value theory is better than that based on competing pricing.Finally, recommendations and suggestions are made to"Wanda the city of beauty"project, regarding the implementation of the pricing strategy based on customer value theory, involving reinforcing the project cost management, cultivating customer oriented value among staff members, making fully use of modern management methods and marketing strategies, as well as training high level sales force.This paper aims to design a pricing method of real estate project, which would satisfy the market needs at the same time accommodate the market competition. It is an application of pricing technique to real estate pricing practice, thus demonstrating the match between theory and practice..