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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”