HOW THEY SELL

[james kelly]

How do you suppose that they sell newspapers or magazines or tv news spots?

[Fletcher]

For print media they have independent organizations that conduct ongoing random telephone polls. From that information they determine what people read & the magazines or newspapers shelf life i.e. how long it sits around on a coffee table getting a chance to be re-read by someone else who might come along.

From that they statistically extrapolate readership numbers & demorgraphics according to age groups, cities v's rural, level of wealth etc etc.

That information is passed onto firms that sell advertising space who match your 'reach' requirements against your available spend i.e. value for money.

The same thing basically happens in tv. News programs always attract the greatest audience (often with the highest rating) so command the highest price per advertising spot. Sport programs also tend to command high dollars per 30 second slot of advertising.

More popular channels with the right viewing demorgraphics tend to cost more per slot. That's why tv stations & magazines are so consumed by ratings & the right mix of programming to attract advertising revenue.

If you want to sell a product then often the standard media outlets gives you the required exposure with a chance of recouping your expenses. If you want to disseminate information or give something away free then an internet web site is pretty good value for money.

[graham]

Hey Fletcher , where HAVE you been ? I thought that maybe you might have finally given up on this long and winding journey that seems to have no end to it.

I remember when they used to sell newspapers on a street corner , yelling "PAPER get yer paper here".

Graham

[Fletcher]

In Fiji following a couple of 12 tonne diggers around. I love it :) Created myself a fabulous cliff top house site over looking a turquoise lagoon & prepared about 1 km of beach front for subdivision. Now that's the sort of holiday I enjoy ;)

Oh yeah, got a spot of fishing done on the lagoon, had a sea food banquet of crays on another day or two, read 3 novels plus spent some Bessler free time with my family.

Why did I come back again ??? ;)

[graham]

In Fiji following a couple of 12 tonne diggers around.

OK Fletcher, not being from down under you will have to translate this for me. I read it as "following 2 heavy duty excavating machines around".

But I'm probably wrong, right?

Graham

[Michael]

Ah Fletcher, you rich boys...;).

Can I come and be your slave?

[Fletcher]

No, you're right Graham, backhoes, excavators, diggers, all the same thing.

Rich is a relative term Michael. My wife still has to go out to work every day.

While there is no reward without risk there is usually the small matter of earning income to service loans that's usually not talked about but can keep you cash poor until pay day. In property development that day can be a long way off as first you have to create the infrastructure which doesn't come cheap. Doing things in stages can help but your profit doesn't materialize until the last sections are sold which could be years away.

That means a frugal lifestyle & nose down. Luckily we probably have some scotish ancestry in there somewhere & besides I live in T-shirts, shorts & flip flops whenever I can, which is all the time, so no expensive suits, rolex's or cars under 15 years old. Who am I kidding, that's the way I like it. Still, I always seem to have a spare bed & a case of beer in the fridge if anyone comes to visit ;)

[rlortie]

Fletcher,

You do bring back some memories. In the 1970's I was a speculative or "spec" home builder.

To Prove a point about using some one elses money, I built and sold a house with $1.00 out of pocket. The dollar went to the developer to legally tie up a building lot. With a set of home drawn plans, estimate sheet and credibility, I received a construction loan. Once the excavating and foundation were installed, I made my first draw on the loan. This paid for the lot and all materials and labor for the foundation.

The the structure was built and another draw made at time building was considered enclosed. Plumbing,electrical and finish followed with a final draw at completion.

I sold the house at a fair profit, plus my wages, paid off the construction loan and walk away with money in pocket.

The first time you try this is the hardest, after a few it becomes easy! That is providing their is a demand for housing and mortgage rates are withing reason.

Ralph

[Fletcher]

The first time you try this is the hardest, after a few it becomes easy! That is providing their is a demand for housing and mortgage rates are withing reason.

In this case I'm developing 200 acres, probably in about 4 stages. I'll probably lease off a resort site as part of the package when I'm ready.

To future proof the investment & mitigate the risk as much as possible we put as much of our own equity into it as we can, which some might philosophically disagree with. Although you lose the opportunity cost of your money earning interest in the bank you are also not subjected to the vagaries that potentially wildly fluctuating interest rates might have on your draw down, to the same degree.

In this instance I am quite happy proceeding a bit more slowly if it means I don't need any equity partners. I like to have some fun doing these sorts of things & not have to answer to anyone else.

After the first time it gets easier ? It's a question of scale & your equity input to hedge things imo, as you've probably discovered :)

[Michael]

Still, I always seem to have a spare bed & a case of beer in the fridge if anyone comes to visit ;)

My room and board then, what do you wish of me master?

[Fletcher]

*grin* let me build the house first, unless you want to pitch a tent ?

It would be useful if you could operate a digger, bulldozer or steer a boat while I scavenge around the reef ;)