The Seven Strategies
7 Strategies for Cultivating New Buyers
Turn renters into buyers by zeroing in on what they want in a new home, starting with the price tag.
Sidestep Skyrocketing Land Costs
Older, established enclaves and outer-ring suburbs offer affordable land in locations that appeal to new buyers.
Boost Curb Appeal Without Breaking the Bank
Properly scaled elevations with simple detailing, regardless of style, turn buyers' heads at any price point. ...
Experiment with Building Science
High-performance techniques conserve time and money while cutting down on owners' energy bills.
Deliver Smaller Floor Plans that Live Large
Scale, proportion, open plans, and flexible spaces make a smaller house look and feel like its million-dollar neighbor.
Focus on Dramatic, Low-Cost Interior Elements
Thoughtful details such as frosted doors, dimmable lighting, high ceilings, and built-ins create a luxury look for less.
Limit Design Choices for Cost-Effective Purchasing
When it comes to helping buyers with interior product selection, less can be more.
Don't Let Labor Shortages Affect Your Bottom Line
Hiring, training, and retaining talented employees and subs should be job No. 1 for builders trying to manage costs.
In many hot markets, a lack of qualified workers has led to a labor shortage that is driving up construction costs, notes human resources expert Martin Freedland. Hiring, training, and retaining talented employees and subs should be job No. 1 for builders trying to manage costs. Well-trained, loyal team members save money by their longevity and by providing their own ideas about cost efficiencies. Manufacturers are a good source for low-cost or even free training sessions. KB Home works with its suppliers to offer training for subs on how to install new green products and technologies, says Tom DiPrima, KB Home’s executive vice president for Southern California. During construction of its recently completed Double ZeroHouse, KB offered its HVAC partner on-site instruction for installing the home’s PowerPipe heat exchanger that recovers energy from waste hot water.
“The supplier actually installed it with them, then took it back out and said ‘Now you install it,’” DiPrima recalls. After the training, the HVAC company changed its projected installation time for PowerPipe from 20 to two man hours, reducing the cost from close to $1,000 to just $100 or $200, he says.
Building strong relationships with subs can go a long way in keeping costs down too, says purchasing expert Tony Callahan. For example, Garbett Homes’ subs like the fact that the company runs a tight ship on scheduling. It was one of the first builders in the region to employ the non-market-driven evenflow system for construction management, which has helped it obtain better pricing and faster construction times. “A trade is a lot more likely to work through the weekend for a builder that gives him volume,” Callahan says.
In terms of in-house staff, many firms that lost executive-level talent during the recession are looking to hire again. But attracting star employees takes more than just competitive compensation.
“I do hear time and time again, ‘It is not just about the money,’” says human resources consultant Veronica Ramirez. “Employees say they want to work for a builder with clear leadership, a strategic direction, financial stability, growth potential, and a culture that they are proud to represent.”
