| Re: Why offer Incentives?
Hi Jeff2007
You just said it: it's all about timing. In development you need cashflow. Selling or getting reservations as quickly as possible to be able to move onto the next phase of the project. That's why everywhere developers offer discounts.
It's also about the correct mix. Selling a number of units at discounted price today and leaving some to sell at higher price with the next release.
Believe me: as a developer I'd rather raise some cash through discounted sales instead of diluting the company capital over too many shareholders. At the end everyone wins, the clients who get the discount, the developers who get their sales and cash and the shareholders of the developers who get higher returns on investment.
Regards,
Prolan |