Strategies and Tactics for a Competitive Market

A Special Program Designed for Builder 20 Clubs

Marketing Strategies

Start with a strong clear message and positioning statement that creates a difference in the minds of your customers
Example: Walmart – We Sell for Less
Understand the importance of the web. You will not succeed without a first class website, social media presence and ability to communicate with your customers electronically.
Create superior point-of-sale materials. Demonstrate your excellence with a professional presentation of the product you’re selling.

Pricing Strategies

Your pricing must be market based, which dictates the need for accurate and current local market data.
Customer centric pricing means ensuring that the buyers feel good about their biggest buying decision, a new home.
Don’t price in a vacuum. You must be externally competitive and externally logical by understanding the fundamental pricing truisms.
Learn the importance of “pricing variation” and “anchoring”

Denial Strategies

Deny your competitors full or partial access to the following assets and you will be the preeminent game in town: the best locations, best products, best craftsmen (your subs) and best professional services.
Protect your intellectual property with trademarks and copyrights.
Understand why to avoid “open subdivisions”, and how to most effectively compete if you cannot.

Overhead Reduction Strategies

Do you have the right mix of people and the right people in the mix?
Conduct a comprehensive review of salaries, benefits and bonuses. However, don’t overlook the fact that money is low on the list of satisfiers. Create a better working environment to retain and attract key employees.
Understand and attack even the “minor” overhead categories such as health insurance, telephones and auto expenses.

Product Cost Reduction Strategies

These strategies are at the core of your homebuilding business and require your constant attention.
Value engineer your plans and specifications.
Institute better purchasing practices and systems with your subcontractors and suppliers. Learn from other builders.

Value Optimization Strategies

Value is in the eyes of the beholder, your customer, not you. The customer’s optimum value system is a balance between functionality, price and emotion.
Optimization requires difficult decisions and trade offs striving to increase utility, physical attributes, functionality and emotional attachment, while maintaining the desired price point.
Learn the 10 Tactics of Value Creation.
Understand how to calculate and use “flash value”