PD House to press ahead with franchise plan

Home-builder PD House believes purchasing power in Bangkok and nearby provinces will drop in 2012 while it will recover upcountry.

The firm said the top-five companies will have to adjust themselves to cope with declining market trend.

PD said that within two years it will promote the PD franchise and prepare to launch a new brand "AQ Home" for houses priced below Bt2.5 million. It also added that the modern-style houses with flood protection would be hot in 2012. It has launched "high floor elevated houses" to lure customers and expects total sales of up to 300 million in the first quarter of 2012. The new strategy is to attract small home-builders to join the PD franchise to build a strong business network before the Asean Economic Community (AEC) in 2015, company CEO Sitiporn Suwannasut said.

From 2012 onwards, PD House's strategy to recruit franchisees will not be confined only to general investors but also small home-builder companies who want to upgrade their own businesses to meet the standards that buyers expect because PD House is now well known among customers.

Small home-builders can compete with their rivals but the entrepreneurs should adjust the work process and service to meet the standards specified by PD House and also decorate their offices in the same style. A special offer for those joining the PD House franchise is a 25-per-cent deduction in franchise fee from Bt500,000 to Bt375,000. Currently, 2-3 entrepreneurs are negotiating. Apart from upgrading the entrepreneur standards, joining the franchise will also build a strong business network for the AEC in 2015.

Currently, PD House has 26 offices all over the country. PD plans to open 10 more offices this year so there will be 36 offices altogether, with emphasis on offices upcountry like Chiang Rai, Nakhon Ratchasima, Nakhon Si Thammarat etc. The sales target for 2015 is Bt1.4 billion.

PD House will launch a brand new franchise "AQ HOME" for houses priced under Bt2.5 million in order to expand upcountry. The pilot project will be at its Nakhon Pathom office soon with expected sales of up to Bt90 million in the first year.

Though the houses will be designed in keeping with modern trends, the design will prevent damage from floods. The company has designed two new models - F-211, F212 - with elevated first floors about 120-150 centimetres from the ground. This will meet the need of a large number of buyers. During the promotion period, the special price is Bt3.5 million and Bt5.3 million.