I am a homebuilding marketing addict and I can't resist touring builder's model homes. As a homebuilding marketing executive for a number of years, a member of the NAHB, and now the president of my own company (we provide professional real estate services to the general public as well as sales and marketing services to homebuilders) I live and breathe residential marketing, and I love to see what builders are doing well.
When we take on a builder client, we spend time learning as much about them as we can so that we can do a great job on their behalf. Yesterday, when touring one of our new builder client's model homes, I stopped in to visit their competition and was dumbfounded at what I saw. Here we are, in one of the worst cycles that the homebuilding industry has had in years, and some homebuilders are still plodding along as they did back in the early ‘80s. With all of the training provided at our local HBA's and the NAHB, we should all be coached up to know that our buyers are expecting something more than 80's big hair and bows and yesterday's look to our homes and marketing efforts.
The first model I stopped at belonged to my client. It was stunning. Beautifully merchandised, the stage was set and as I toured each room, I easily envisioned myself living in that home. Great job. Mission accomplished. I seriously doubt that anyone would leave that model not sold on both the builder and product. (We aren't tooting our own horn here. We are providing this builder with creative services and had nothing to do with the merchandising.)
The first competitor's model was closed down with no sign of life and no note as to when someone would return, if ever. I have issues with closing a model down at any time, especially in this market. As a builder's on-site agent for many years, I sold from a model home and learned early on that you can't predict when someone is going to stop and inquire about your homes, so you need to be there. When things are slow, more than ever you need to be on-site and open for business in case that is the one day that a home shopper ventures in. I'm not saying that new home consultants need to work every day, but I am saying that the store needs to be open for business every day. Sales managers need to figure this out and plan accordingly. If the sales team can't figure it out for themselves, then as the builder, you need to figure it out for them. (Mr. Builder, Competitor 1, you could really use our help.)
The second competitor's model was open. I parked in the street because the salesman was parked in the driveway. On-site agents should never park in the driveway. Never. This really is very basic and spoke to the level of knowledge and understanding of the sales process that the on-site agent had. Major builders have spent a great deal of money trying to better understand the sales process and they do not permit their salespeople to park in the driveway, and you shouldn't either.
As I approached the front door, several simple marketing mistakes took the luster off of what should have been exciting, anticipatory moments as I (and ultimately the customers) prepared to enter a beautiful, new model show-home. The home appeared to have been seriously lived in for some time. How had these simple things that subtly destroyed their presentation and made the home feel old and neglected been overlooked?
Once inside, the home's presentation couldn't compare to the first model that I had visited. From creating literally hundreds of model merchandising budgets over the years, it was easy to spot where money had been improperly allocated in the merchandising budget and there were areas in the merchandising that needed immediate attention. Very basic stuff, including no fridge in the kitchen, just a gaping hole in the cabinetry. It appeared as though the builder ran out of money. If this was all the money the builder had to spend on staging his model, a different approach might have served him better. In addition, there was a faux pas in the merchandising so ridiculously funny and glaringly obvious that for me to mention it here might identify and possibly embarrass the builder, which I will not do. I can't believe that the builder doesn't recognize how silly and pretentious this looks to buyers. It was a huge turn-off and marketing blunder. Good grief!
I won't even go into the fact that the salesman had set himself up on the kitchen planning area with a huge printer, computer, and wads of papers. What an untidy mess that created even more distraction from the overall appearance and quality of the home.
Clearly some builders have deeper pockets and more money to spend on their presentations than others, but don't let the customer spot that your competitor is enjoying greater success. It helps sell their homes, not yours. Adjust your merchandising and presentation to your competition or you'll have to wait and let them sell out ahead of you. (Does anyone have time to wait today?)
Please, builders, if you don't have an in-house marketing expert (not a marketing coordinator or a sales manager, who while being extremely important to your efforts are not experts in marketing) bring in an outside marketing consultant to help you properly identify your target market, identify the model that best competes, and properly plan and develop the budget and make recommendations to you. The cost of a consultant is minimal compared to the results you will get.
Today, as builders rush to create innovative incentive programs and marketing strategies to drive traffic and create sales, more than ever everyone needs to pay attention to their marketing efforts. Please, don't sit there wondering why nothing is selling. Start reinventing yourself by closely examining what is happening in your communities and models. And please, bring in someone from the outside to help you fine tune your efforts. The mistakes I saw were very basic, telling me that these two builders (and others that I have seen recently) are not relying upon experienced and savvy marketing people. A sales manager, (or Sales Director) while critical to your success, is not a marketing guru. Give your sales manager the benefit of professional marketing experience to get things right so that the sales team has all of the tools they need to sell your homes. Besides, having someone dedicated to marketing will allow your Sales Manager/Director the ability to focus on sales related issues, such as training, customer issues, reducing inventory and Realtor relations.
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