QUOTE(prody @ Oct 21 2014, 03:41 PM)
Let me show you the correct math with an example.
Mr X is buying a house.
2007: The house costs 500,000. Advertising cost is 2%. Mr X pays 10,000 to the developer to advertise the house.
2014: The same house now costs 1,000,000. Advertising cost 6%. Mr X pays 60,000 to the developer to advertise the house.
Mr X is paying 6 times more for the developer to advertise the house that Mr X buys.
Businesses don't calculate like that. Selling price is based on supply and demand. If the market price in Mont Kiara is RM1m, it will be RM1m. Whether they spend the 6% or not, they will still sell you RM1m. Because the market price is like that. You cannot ask the developer "hey boss, please don't advertise and you pass back the cost saving of RM60,000 to me, and lower the price to RM940k". If you think you can, next time you buy a Toyota or Iphone, you can try to ask them too
Things don't work that way. Just like fashion, cars, even McD KFC insurance etc. They have to increase the advertisement budget to stay in business. If their competitors are advertising, the one who don't spend on advertisement will be eliminated in business. That is the cruel world of business
Nowadays, developers have to spend on nice show village, big nice roads and entrance, elaborated landscaping along the main road, engage celebrities, models during their launch etc. Show village alone already cost them tens of millions.