The Demand Solutions Blog

5 Highlights of Donald Davidoff’s Multifamily Matters Interview

Posted by Donald Davidoff on Jul 9, 2018 2:00:00 PM

You probably already know that D2’s CEO, Donald Davidoff, revolutionized the multi-housing industry seventeen years ago when he led the team that built the first automated pricing and revenue system.  But he certainly wasn’t content to rest on his laurels. Donald, an engineer by training, has continued to transform the industry with a holistic viewpoint tied together by a common thread: data.

Multifamily Matters, a national weekly radio show dedicated to interviewing the best in the industry, was eager to have Donald on as a guest so he could share his unique perspective. After all, as host Paul Marks pointed out, not only was Donald prescient about the multifamily industry’s need for analytics, he has continued to be a “legendary thought leader” for Pricing and Revenue Management (PRM).

Here are some highlights from Donald’s hour-long interview, followed by a link to the full conversation with Paul Marks and Donald’s former client, Brian Hilton. Hilton is the current head of PRM at Simpson Housing, which was the second multifamily operator in the industry to implement PRM software. 

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Topics: Artificial Intelligence, pricing and revenue management, Pricing

6 Indicators that it's Time for a Pricing Health Checkup

Posted by Jessica Mills on Sep 26, 2017 3:00:00 PM

Modern pricing strategies and revenue management systems have had a tremendous impact on the performance of multifamily owners and operators. While systems like LRO and Yieldstar are quite robust and continuously improved, they are not infallible on their own. In fact, the flexibility they give operators to implement a range of strategies means that users need to review and modify settings as market conditions and strategies change.

Forward-thinking and high-performing property management companies realize that, as with any system, a routine assessment or checkup is a powerful tool. Inevitably when you look at your pricing and revenue management system in depth, you find areas of meaningful improvement.

Here are six indicators that the time has come for a pricing health checkup:

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Topics: Pricing

Lessons Learned: Conducting a Pricing Review

Posted by Jessica Mills on Jul 21, 2017 3:00:00 PM

Weekly or bi-weekly pricing review calls are a great forum to learn more information on why a property is or isn’t leasing. But sometimes when helping teams the answer isn’t as simple as just “the price”. You may be surprised what may arise as part of these regular communications. Here are three lessons learned from leading these pricing review calls: 

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Topics: Pricing

3 Qualities Successful PRMs Share

Posted by Jessica Mills on Jun 23, 2017 12:00:00 AM

A revenue management system is a large company investment. We expect site teams to comply with this pricing and train them on what information they should be entering in our systems. However, you may hear that teams aren’t showing up to pricing calls or have failed to mention the road construction deterring prospects from visiting their property. If this sounds familiar, you do have a problem. But it may not be your sales team...have you hired the right person as your Pricing and Revenue Manager?

The most successful PRMs share certain qualities that give them the ability to effectively run revenue management systems, but also manage the relationships involved. Here are the top three qualities that ideal PRMs share:

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Topics: Pricing, Revenue Management, pricing and revenue management

3 Pricing Must-Haves for Softening Markets

Posted by Jessica Mills on Apr 13, 2017 2:00:00 PM

When is the best time to think about how to price your assets in a softening market? Before the market softens. Having a strategy in place before things go south is crucial so no one is tempted to make emotion-driven decisions when the heat is on. What you do in a soft market sets the bar for what you will do in a larger downturn. If drastic decreases or discounts show up at the first sign of nervousness, what will we do when we really are in a position of negative growth?

Here’s 3 big tips for pricing in a soft market:

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Topics: Pricing, pricing and revenue management

Dollar vs. Percentage Discounts, Which to Use With Multifamily?

Posted by Donald Davidoff on Jan 4, 2016 11:00:00 AM

The Harvard Business Review’s daily stat email recently sent an interesting statistic related to pricing psychology. Specifically, they reported:

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Topics: Pricing

Channel Pricing Conflict and Customer Service

Posted by Donald Davidoff on Jun 17, 2013 10:45:00 PM

So this past week was an interesting one for travel. I was attending the Folk Alliance International’s conference in Toronto through Sunday. Nothing to do with multi-family housing—just an organization I’m Treasurer of and a chance listen to a lot of incredible music while getting very little sleep.

I was supposed to fly home Sunday evening, change out clothes and fly the next morning to the NAA Student Housing conference to be on a student housing pricing panel (probably a good topic for a future blog), then on to Rainmaker’s LRO User conference in Palos Verdes, CA. Side note: Bruce and Tammy sure know how to pick resorts—the Terrenea is just a fabulous resort with view of the Pacific Ocean and Catalina that are just spectacular.

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Topics: Pricing, Revenue Management, property management, apartment operations

JC Penney Proves It’s Hard to Change Pricing Psychology

Posted by Donald Davidoff on Apr 9, 2013 10:41:00 AM

Don’t know how many of you follow retail, but JC Penney just pulled the plug on one of the biggest experiments in pricing history—acknowledging it to be a colossal failure. In short, Ron Johnson, the architect of a move from constant couponing to simple “fair” pricing is out. And expect coupons to be back in.

I was skeptical when he was hired and announced his plans less than 2 years ago on two grounds:  1) Walmart kind of owns the “every day low price” model (plus it’s not clear that “everyday fair pricing” has an authentic ring to it anyway) and 2) more often than not, I find people like to feel they’re getting a deal. In other words, discounting sends a psychological signal that is more powerful than “simple” pricing.

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Topics: Pricing, apartment, LRO, apartment pricing, Yieldstar, pricing and revenue management

Pricing and Dispositions: When 12-1 does not equal 11+0

Posted by Donald Davidoff on Jan 15, 2013 6:00:00 PM

The deal world. Gotta love it. Smart people doing deals worth tens of millions. Even hundreds of millions of dollars. Surely with that much money at stake, processes are wired tightly and there’s really no room for pricing shenanigans, right? Of course if you believe that, you probably thought sub-prime mortgages were a great investment back in 2007 as well.

Here’s something that I’ve wondered about for the 15 or so years I’ve been doing pricing and revenue management in multi-family housing. Two different deal scenarios:

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Topics: Pricing, Revenue Management, property management, apartment operations

The Magic of Zero

Posted by Donald Davidoff on Jan 1, 2013 9:30:00 PM

Hopefully you’ve already heard of the work of Dan Ariely. If you haven’t, click on this link to his website as every modern-day pricer and/or marketer should become familiar with his studies. Dan has PhDs in cognitive psychology and business administration. He’s currently the James B. Duke Professor of Psychology and Behavioral Economics and teaches at Duke University. He did a lot of his early work at MIT, may alma mater, which only makes him that much dearer to my marketing heart.

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Topics: Pricing, Revenue Management, apartment, property management