Coming Together

Credit: Heather Brand

Jeff Benton Homes of Huntsville, Ala., enjoyed the bestsales month in its 22-year history in May 2008, when it sold 28 houses for $8.3 million, despite the market being off 23.5 percent. In June, it sold another 25. Jeff Benton, the builder’s 50-year-old founder and owner, is feeling more confident these days that his company can repeat last year’s success, when it was one of the few top-200 builders nationally that increased their revenue and closings.

Benton attributes those gains to fertile market conditions and the fact that public production builders in his area came and went. Also, Huntsville’s unemployment is kept low by a defense industry that’s expanding, thanks to the federal government’s military base realignment and closure program, which is expected to relocate 4,700 jobs to the area’s Redstone Arsenal and create as many as 11,000 new jobs by 2011.

But because of the operational and marketing improvements it has been making in recent years, Jeff Benton Homes was eminently prepared to exploit that growth. “It was a matter of timing and a culmination of everything we have been working toward,” says Wendy Lee, who joined the company as a model-home decorator in 1998 and is now vice president of marketing and sales.

Quality Is Job No. 1

With 10 active communities, Jeff Benton Homes grew last year even though Huntsville’s housing market did not. The 1,939 permits issued by the county in 2008 were the lowest since 2004, says Lynn Kilgore, executive director of the Huntsville/Madison County HBA.

In a market that Kilgore describes as still having “a small-town feel to it,” Jeff Benton Homes is established as a high-quality production builder. Its reputation stems partly from the integrity of its warranty program, which Benton takes very seriously. Lee recalls that when she interviewed for a job at the company, she asked about its warranty policy, a headache for the previous builder she worked for. Benton told her that the warranties included his cell phone number as the emergency contact. “I thought he was either crazy,” she remembers, “or wasn’t afraid about hearing from angry owners.”

Benton doesn’t include his phone number on warranty contracts anymore, explaining that he has built his production department “around eliminating those things that people would call us about on warranty.” No home is closed until it has “zero” problems on its checklist.

The builder’s two product lines average 3,100 square feet and sell for $98 per square foot. “That’s down 10 percent, both on the size and price, from a year ago,” says Benton. The builder has also introduced smaller house plans, in the 2,000-square-foot range, selling for around $210,000. Smaller houses could account for up to two-fifths of his company’s sales this year.

In 2008, 11 percent of the average selling price of Benton’s homes came from options and upgrades. In September, the company will open a new Design Studio, which at around 3,000 square feet will be double the size of its existing design center. The added space, says Lee, will present the builder with more opportunities to bring in customers for education and events.

Staying Aggressive

The Design Studio will be part of a new 13,000-square-foot headquarters, which can be seen as a symbol of the process improvements Jeff Benton Homes has made.

Last year it installed new software “so we can handle more volume.” And its management team “has finally come together,” says Lee, so that each manager can focus on running his or her department efficiently. “We’re dedicated to squeezing out every dollar we can, and we’re looking to make every aspect of our operations leaner,” says Benton. But scrimping on marketing or sales isn’t an option, he asserts.

Credit: Jeff White

Customer awareness of Jeff Benton Homes comes mainly from word of mouth and billboard advertising. A partnership with local schools allows the builder to send promotional flyers home with students, and 19 billboards reinforce its name. “Our branding effort finally took root last year,” says Lee. This fall the builder will relaunch a revamped website that will be interactive and easier to update. Customers visiting the company’s subdivisions are getting better service, too, thanks to a decision last year to get its sales manager into the field more to work with the salespeople.

Staying Put

Benton hopes his company this year will be “a little bit ahead” of its performance in 2008. With four years’ supply of land, he’s ready for when business picks up. But Benton isn’t interested in expanding to another market until he “maximizes” opportunities in Huntsville. “People know me here as a real person in town,” he says. “I don’t need the distraction of another market.”