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Know Your Competition and Increase Your Sales

Sheri T. Jackson, MIRM

In these highly competitive times, it’s important to know the products, financing and services other builders are offering so that you can set the right tone for your sales presentations.

The following real-life case study shows how a thorough knowledge of the competition can increase home sales.

A few months ago, Builder A asked me to find out why his competitor, Builder B, was outselling him in the same community. Their products and services were similar and Builder A was satisfied that his sales associate was doing a good job.

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I was familiar with both builders, and I was intrigued that Builder B was outselling Builder A because his construction delays, mistakes and poor service had created many unhappy home owners. Builder A, on the other hand, had a good reputation for delivering a quality home in a timely fashion, had an excellent service program and was regarded as one of the area’s leading builders.

I received a prompt greeting at Builder B’s sales center. Names were exchanged and I explained to the sales associate that I was from the area and had just sold my home. A thorough presentation followed and after discussing the site plan, the associate suggested a driving tour so he could further describe how the community would look once completed. I could tell he had spent a great deal of time with the developers and his knowledge was impressive.

He drove me to the entrance of the community, which was still under construction, and explained how it would look when it was finished. At the end of the tour, we stopped at a home that would be closing soon, and he showed me all of its features and assets.

After the demonstration was over, I asked the associate his opinion of Builder A. He acknowledged Builder A’s success in the marketplace and in a comparison of Builder A and Builder B seemed equally knowledgeable about both. He showed me how Builder A constructed his foundations compared to Builder B. We next looked at homes in the framing stage, and he explained how Builder B used larger headers and floor joists than Builder A. Moving on to completed homes, he showed how Builder B used more extensive exterior trim.

The sales associate was highly complimentary of Builder A and he noted that differences between his homes and those of Builder B would not cause any structural problems. But he had planted a seed of doubt in my mind about the quality and workmanship of Builder A’s homes.

On the basis of the sales presentation, I came away with a new respect for Builder B’s homes. If I had been a genuine prospect, there would have been a good chance that I would have bought one of his homes. And the sales associate had made it easier for me to decide whose home to buy because he knew his competitor’s product extensively.

Sheri T. Jackson, MIRM, is vice president/sales manager for Fonville Morisey Builder Marketing Group. Inc.


For additional cutting-edge sales and marketing information, subscribe to NAHB’s Sales and Marketing Ideas magazine. Call 800-368-5242 x8192 or click here to subscribe or order a copy. Click here to learn about membership benefits of the National Sales and Marketing Council and the Institute of Residential Marketing.

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