Shifts in the market call for a smarter, more efficient approach to product design. The pressure is on to reduce cost without sacrificing quality or appeal. Here are five proven, cost-conscious design strategies to keep your offerings competitive and margin-friendly.

1. House Budget Review: Uncover Hidden Waste

Your first opportunity to save isn’t in the walls, it’s in the numbers. A line-by-line review of your cost codes often reveals “busts” or outdated assumptions. Was this plan priced for a different market? Is it over-specified in ways buyers don’t value? Has street value dropped with the slowdown in starts?

Re-bid, re-contract, and align every line item to today’s conditions. Even without touching the design, this process can surface real savings.

2. Level 1 Performance Review: Quiet Cost Trimming

Think of this as a precision tune-up, not a redesign. You’re not changing the plan, just tightening it. Eliminate waste in materials (e.g., excess framing, unnecessary drops). Standardize assemblies and reduce variance. Address over-engineering that drives up costs with little to no buyer benefit.

This level of review can lower your sales price and boost margin without requiring re-marketing or upsetting previous buyers.

3. Elevation Review: Curb Appeal without the Curveball

Some elevations have become bloated over the years with complex rooflines, costly materials, and excessive articulation. Can it be simplified and still impress at first glance? Create a new “from” price based on a clean, updated look. 

Look for overpriced or expensive details. A leaner elevation package can deliver immediate, dollar-for-dollar gross profit improvement while staying true to your brand.

4. Level 2 Performance Review: Strategic Redesign

This is where the real transformation happens. While more invasive, this review can drive substantial cost and price reductions. Re-examine kitchens, baths, HVAC, truss layouts, and square footage. Optimize how the home is assembled. Rename the plan if necessary to protect past sales.

Don’t be afraid to evolve. Consider changing how you build. The most efficient homes on the market were built through bold decisions.
 
5. New Product: Build for the Market You Have

Sometimes the best strategy is to start fresh. If buyers have disappeared, your product may simply be too big, too expensive, or too outdated for current demand. That doesn’t mean cutting quality, it means building smarter. Focus on smaller footprints with high-performing layouts. Partner with trades to find cost-effective, performance-engineered solutions. Design with intent: offer a great kitchen, welcoming great room, and an owner’s suite that still sells the dream.

The market doesn’t care about what used to sell. A new product, designed with efficiency and value in mind, can help you compete without sacrificing margin.

In this environment, every dollar counts. These five strategies provide a practical roadmap for creating homes that respond to today’s market without compromising what buyers love.

Now’s the time to act. If you’re ready to design smarter and sell stronger, join us for our upcoming Profitable by Design seminar in Denver, August 25-26, 2025. We’ll dive into these strategies and explore practical tools, real-world examples, and proven tactics to help you move quickly, cut cost, and stay competitive. Space is limited. Don’t miss it!

Ed Hauck is a senior consultant at Shinn Group. He specializes in helping builders around the country reduce direct construction cost, streamline operations, and guide new product design towards efficiency and cost control.