In the aftermath of COVID-19, home builders have been busy making up for lost time, profits, and opportunities. In challenging times, negotiating with manufacturers and trade partners can take a back seat to more pressing issues. However, it’s when circumstances are less than ideal that the power of negotiation can deliver the biggest reward.
To maximize success, it’s imperative for profit-oriented home builders to place a high priority on negotiating with manufacturers and trade partners while ensuring purchasing teams possess strong negotiation skills. Improving the purchasing team's understanding of the negotiating process is one of the most worthwhile endeavors a home builder can pursue to improve profitability.
Builders who take the time to negotiate with their manufacturers and trade partners typically see 5%–¬10% in savings per month. Without negotiation, it’s easy to let the scan-and-buy world eat into your profits. If your ability to negotiate is lacking, your bottom line will suffer.
If the price is never in question, it will never decrease. Without negotiation, the risk is high that more money will be lost in future transactions. Investing time in negotiating upfront will save you money in the long run and boost your profits.
The quality of a house is only as good as the quality of the crew. Powerful negotiators are able to utilize their skills to acquire the best crews for their jobs.
When builders negotiate with trade partners, they are more likely to be able to handpick their crew to be as effective and reliable as possible. Putting this skill to practice will ultimately result in better crews, better builds, and better, more sustainable buyer relationships.
Supply chain issues are impacting product availability and delivery schedules. In some cases, home builders are forced to settle for lower quality products. The domino effect of supply chain issues often results in delayed closings and frustrated buyers.
Through the power of negotiation, you can successfully navigate supply chain issues, saving you time and money. Developing mutually beneficial relationships with manufacturers allows you to learn what materials are readily available so that you can effectively adapt your plans to utilize them. You’ll be able to maintain the quality of your homes while meeting buyers’ expectations.
The benefits of strong negotiation skills are undeniable. The ability to negotiate effectively can lead to lower costs, improved scheduling, more competitive sales prices, increased customer satisfaction, and ultimately, better profits.
It’s standard that manufacturers and trade partners receive negotiation training. Don’t put yourself at a disadvantage. Take the time to fine tune these skills to the point where negotiation becomes less of a question and more of a disciplined habit.
Our Negotiating to Win
seminar focuses on the reasons for negotiation, the different types and styles of negotiation, and what can be negotiated beyond price to add value to your organization. Join us for this highly-interactive, dynamic learning experience and take your negotiation skills to the next level.
The next live online session of the Negotiating to Win seminar starts on March 1, 2022. Visit the Events
page to view all upcoming seminars.