Happy Holidays From
Gringo Furntiure
Click Photo to see our holiday dance!
Will be off on vacation from December 24 and back January 2nd 2009.Happy New Years to Everyone
December 23, 2008
December 4, 2008
Developer Furniture Packs
Each day we get numerous calls and emails from customers who have recently bought into a new development and are looking for alternatives to the furniture packs that their developer is offering. I am probably going to get some back lash for writing this BLOG....but in the end, it won't be from the people that matter the most to us....so here is goes
There are 2 reasons why people do not want to use the developer furniture packs; cost and choice.
Choice allows us to show our personality and creativity.
Many of the furniture packs offered look more like hotel room furniture. The only personalization you can make is in the fabrics. Most furniture packs have little personality and possess none of the Mexican charm we all pictured when we first decided to buy into Mexico. People do not want to have the same style as the Smith's down the street, nor do they want their dream home to reflect another persons’ tastes. You want people to walk into your Mexican dream home and see your personality, not the developer’s....heck, isn't this YOUR home. Would you ever consider a furniture pack for your residences in Canada or the States?
Cost has never been more important....we are all looking to save.
While the furniture packs are often beautiful and of good quality, the costs can sometimes seem...well....outrageous. I remember the first time I saw what a furniture pack cost...my jaw dropped. I have seen 2 bedroom furniture packs cost as much as $45,000. That is a steep price for a convenience.
Now for the stomach turning part....Most of These Homes Are Bought To Be Rentals! My gosh, spending that kind of cash on something that is just an investment? Pick up any real estate guru's latest, greatest book on real estate investing and the overwhelming message is "Don't Over Spend". Have you ever seen "Flip That House" and watched someone put too much money into a house and loose all kinds of cash because they got all caught up in unnecessary finishes? Why on earth do you need to spend that kind of cash to furnish a rental unit????? Think about it, it is nuts!
Developers will tell you that you MUST purchase their furniture packs to gain access to the rental programs. I understand this thinking because standards need to be met for rental purposes, however, I also know these developers are making money from these sales under the guise of these rental program standards. I hear everyday how the developer is "REALLY PUSHING" the furniture packs......stop and think for a second....why would anyone push something they were not being compensated for?
Furniture Packs also give developers and their chosen property management company the ability to control the rentals in the complex, thus, earning more income.....to the tune of 50% for each booking! Frankly, I think renting on your own or going to an outside rental company is far better....but that is another BLOG for another time.
The sad thing to me is that fear will often cause people to buy into the furniture packs and people will spend far beyond what is necessary. They believe that if they do not comply they will not be accepted into the rental programs. I guarantee, if the management company has more bookings than units they will not care if you bought the furniture pack or not, they just want to fill rooms and make their 50% commissions. In all my years I have never heard of a property management company turning down a customer because they did not have a standard furniture pack. As long as you have good mattresses, quality furniture and the right amount of furniture your place is 100% rentable. I rent both my houses www.casamerlot.com and www.casachablis.com and nobody told me what to buy or how to decorate. Each of my places boast a 75% occupancy rate (2008)...and I do it on my own....but again, that is another BLOG for another time.
I am not sure how our society got to this point.... of causing people to buy on fear. Marketers have done a wonderful job creating fear, especially in Mexico where people feel vulnerable.
Did you know that there is a standard that developers go by for pricing furniture packs? They price the furniture packs on the cost of the unit. So, for instance, if you paid $400,000 for a 2-bedroom unit you will likely see a furniture pack for that unit price at $40,000. This is typically calculated at 10% of the cost of the unit. Gringo Furniture can do 2 bedroom units for as low as $5,000 to a maximum of $18,000....quite a gap eh!?
Gringo Furniture would love to work with developers but we have had a hard time....mostly because we can't afford it. We can't afford the commissions requested to sell our furniture into developments without raising our prices. And, if we raise our prices we become less accessible to the people that matter most to us....people like us who ultimately are people like you. We hope one day a developer see us for the value we bring to their customers instead of the value we bring to them.
Furniture packs have their purpose. They save time, they make the decisions for you and you get a showroom furnished home. It is up to you however if you want to pay for these conveniences or if you want to save upwards of $20,000 - $30,000....imagine what you could do with the $20,000 you saved.
So, how are we different...here comes the pitch....
Choice
Gringo Furniture has all the Mexican charm you could want and you can customize till your hearts content. We have typical rustic designs that can be transformed into hacienda quality with a special finishes. Our wicker furniture is warm and romantic and our new slip-cover sofas as so comfortable you will have a hard time picking yourself out of them to go to the beach. We allow you to create your personal styles and we love this part of our job!
Cost
Does Gringo Furniture sell furniture for free...NO! Do we make money from selling furniture...YES! But, our prices are a fraction of what the Furniture Packs sell for! We offer less services as far as set-up goes but you save literally $10's of thousands not paying for these services.
Why are we less expensive? We price our furniture in line to what it should be selling for. We do not bundle everything up and hide our prices. You see what each piece costs and you see each charge itemized.
Heart
We are motivated by a passion for what we do, a desire to do the right thing and to promote jobs in Mexico and Canada. I can honestly say, making money has never and will never be our number one priority, it is important, but it does supersede what is fair to our customers. We make mistakes, we are not perfect, but we try to rectify each mistake so that our customers walk away happy. Maybe that is the wrong business strategy, but it is a strategy that gets us (and I honestly mean "us" as all of us here love what we do) out of bed everyday excited to get to work.....and that my friends is priceless.
Each day we get numerous calls and emails from customers who have recently bought into a new development and are looking for alternatives to the furniture packs that their developer is offering. I am probably going to get some back lash for writing this BLOG....but in the end, it won't be from the people that matter the most to us....so here is goes
There are 2 reasons why people do not want to use the developer furniture packs; cost and choice.
Choice allows us to show our personality and creativity.
Many of the furniture packs offered look more like hotel room furniture. The only personalization you can make is in the fabrics. Most furniture packs have little personality and possess none of the Mexican charm we all pictured when we first decided to buy into Mexico. People do not want to have the same style as the Smith's down the street, nor do they want their dream home to reflect another persons’ tastes. You want people to walk into your Mexican dream home and see your personality, not the developer’s....heck, isn't this YOUR home. Would you ever consider a furniture pack for your residences in Canada or the States?
Cost has never been more important....we are all looking to save.
While the furniture packs are often beautiful and of good quality, the costs can sometimes seem...well....outrageous. I remember the first time I saw what a furniture pack cost...my jaw dropped. I have seen 2 bedroom furniture packs cost as much as $45,000. That is a steep price for a convenience.
Now for the stomach turning part....Most of These Homes Are Bought To Be Rentals! My gosh, spending that kind of cash on something that is just an investment? Pick up any real estate guru's latest, greatest book on real estate investing and the overwhelming message is "Don't Over Spend". Have you ever seen "Flip That House" and watched someone put too much money into a house and loose all kinds of cash because they got all caught up in unnecessary finishes? Why on earth do you need to spend that kind of cash to furnish a rental unit????? Think about it, it is nuts!
Developers will tell you that you MUST purchase their furniture packs to gain access to the rental programs. I understand this thinking because standards need to be met for rental purposes, however, I also know these developers are making money from these sales under the guise of these rental program standards. I hear everyday how the developer is "REALLY PUSHING" the furniture packs......stop and think for a second....why would anyone push something they were not being compensated for?
Furniture Packs also give developers and their chosen property management company the ability to control the rentals in the complex, thus, earning more income.....to the tune of 50% for each booking! Frankly, I think renting on your own or going to an outside rental company is far better....but that is another BLOG for another time.
The sad thing to me is that fear will often cause people to buy into the furniture packs and people will spend far beyond what is necessary. They believe that if they do not comply they will not be accepted into the rental programs. I guarantee, if the management company has more bookings than units they will not care if you bought the furniture pack or not, they just want to fill rooms and make their 50% commissions. In all my years I have never heard of a property management company turning down a customer because they did not have a standard furniture pack. As long as you have good mattresses, quality furniture and the right amount of furniture your place is 100% rentable. I rent both my houses www.casamerlot.com and www.casachablis.com and nobody told me what to buy or how to decorate. Each of my places boast a 75% occupancy rate (2008)...and I do it on my own....but again, that is another BLOG for another time.
I am not sure how our society got to this point.... of causing people to buy on fear. Marketers have done a wonderful job creating fear, especially in Mexico where people feel vulnerable.
Did you know that there is a standard that developers go by for pricing furniture packs? They price the furniture packs on the cost of the unit. So, for instance, if you paid $400,000 for a 2-bedroom unit you will likely see a furniture pack for that unit price at $40,000. This is typically calculated at 10% of the cost of the unit. Gringo Furniture can do 2 bedroom units for as low as $5,000 to a maximum of $18,000....quite a gap eh!?
Gringo Furniture would love to work with developers but we have had a hard time....mostly because we can't afford it. We can't afford the commissions requested to sell our furniture into developments without raising our prices. And, if we raise our prices we become less accessible to the people that matter most to us....people like us who ultimately are people like you. We hope one day a developer see us for the value we bring to their customers instead of the value we bring to them.
Furniture packs have their purpose. They save time, they make the decisions for you and you get a showroom furnished home. It is up to you however if you want to pay for these conveniences or if you want to save upwards of $20,000 - $30,000....imagine what you could do with the $20,000 you saved.
So, how are we different...here comes the pitch....
Choice
Gringo Furniture has all the Mexican charm you could want and you can customize till your hearts content. We have typical rustic designs that can be transformed into hacienda quality with a special finishes. Our wicker furniture is warm and romantic and our new slip-cover sofas as so comfortable you will have a hard time picking yourself out of them to go to the beach. We allow you to create your personal styles and we love this part of our job!
Cost
Does Gringo Furniture sell furniture for free...NO! Do we make money from selling furniture...YES! But, our prices are a fraction of what the Furniture Packs sell for! We offer less services as far as set-up goes but you save literally $10's of thousands not paying for these services.
Why are we less expensive? We price our furniture in line to what it should be selling for. We do not bundle everything up and hide our prices. You see what each piece costs and you see each charge itemized.
Heart
We are motivated by a passion for what we do, a desire to do the right thing and to promote jobs in Mexico and Canada. I can honestly say, making money has never and will never be our number one priority, it is important, but it does supersede what is fair to our customers. We make mistakes, we are not perfect, but we try to rectify each mistake so that our customers walk away happy. Maybe that is the wrong business strategy, but it is a strategy that gets us (and I honestly mean "us" as all of us here love what we do) out of bed everyday excited to get to work.....and that my friends is priceless.
December 3, 2008
Interesting Article
I have not had a moment to even clean my house in the past 3 weeks, business is booming....which defies what the news is reporting everyday! We are thankful everyday to continue keeping all our suppliers and employees busy.
I promise to continue my story from Merida, but in the mean time I came across this very interesting article about investment in Mexico. Strangely it is reported from the Middle East. It is worth a read if you already own in Mexico or are thinking of buying.
http://www.bi-me.com/main.php?id=28335&t=1&c=35&cg=4&mset=1011
I have not had a moment to even clean my house in the past 3 weeks, business is booming....which defies what the news is reporting everyday! We are thankful everyday to continue keeping all our suppliers and employees busy.
I promise to continue my story from Merida, but in the mean time I came across this very interesting article about investment in Mexico. Strangely it is reported from the Middle East. It is worth a read if you already own in Mexico or are thinking of buying.
http://www.bi-me.com/main.php?id=28335&t=1&c=35&cg=4&mset=1011
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