Find the 2024 Buyer

We have had several years of sales price escalation and cost increases. In that time, it was easy to load up our homes or get careless in our design process. In our defense, we had a lot going on. Now with high interest rates, we need to find a way to lower sales prices without lowering profits. The market will slow for the holiday season. We have about eight weeks to retool our product to meet the budgets of our future clients.

Here are five steps to get prospects to become customers:

1. Elevation Comp Review. Review product lines cost code by cost code. Look for busts. It could be over-specified or the contract was written when the market was hot. Re-specify, re-estimate or re-bid and re-contract.

2. Level 1 Performance Review. Look for excessive engineering and overdesign. Make simple changes to lower cost and sales price. This does not involve significant changes to the plan. We typically do not need to rename the plan. We can market a lower price and not disrupt the market.

3. Elevation Review. Over the years, some elevations have become excessive. Can we simplify, reduce cost and have a new, lower opening price that still offers good curb appeal?

4. Level 2 Performance Review. This is more painful and could involve some significant changes to the plan or the assembly of the plan. Rename the plan to avoid upsetting previous buyers. This will produce the most cost and sales price reductions. This should be a fairly quick process.

5. New Product. Oh crap, the market is bad. Where did the buyers go? This is where we need to redevelop product. We need to lower square footage and get serious about Performance Engineering. We need very efficient designs. This new product should still offer good elevations, a kitchen and great room, and an owner's suite. We just need to be a lot more thoughtful and cost conscious.

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