warranty/home maintenance transition absolutely painless. And, by promoting proper home maintenance, they protect the home owner’s investment and protect the home builder from lawsuits. Here’s how you can do it, too:
- Educate home owners. “During the design phase, we tell them about different characteristics of the materials and products they are considering for their home so they can understand the nuances of each one and make intelligent choices,” says Katz. “We also tell them what kind of maintenance those materials and products will need down the road.”
The company advises customers on materials to avoid for certain applications or exposures. “That goes a long way towards preventing people from calling later on and saying a product failed,” Katz says.
- Put it in writing. Katz’s customers receive 114-page home owners’ organizers. Among other information, the binders include selections records, vendors’ contact information, an explanation of how the products and materials selected for the home will perform, contact information for every person who worked on their home and a home maintenance schedule.
- Explain the warranty. Customers receive warranty manuals at orientation. Katz explains how the home builder’s warranty period works and what is covered. She and the home owners also go over the separate warranties for each product in the home since, as she puts it, everything has a separate shelf life.
- Tell home owners what to look for. “We explain how the house will ‘live,’ ” says Katz. “Depending on the climate, wood and sheetrock expand and contract at different times of the year, which can produce cracks. We tell them that we’ll come out and fix those cracks the first time, but after that it is a home maintenance responsibility.”
Katz goes over the home maintenance schedule with home owners to make sure they know what items to keep an eye on. “We tell them to treat all leaks like small fires; ignore them, and they’ll only get worse,” she says.
- Stay in contact. Call home owners now and then after the warranty period expires. For example, when there’s a freeze threat during the winter, Katz Builders calls all of its home owners to remind them to let their faucets drip a bit to prevent frozen pipes. This isn’t handholding — it’s subtle marketing and good business.
Managing the warranty/home maintenance hand-off with systems and procedures not only streamlines the process; it’s also good for your image.
“Many home building companies are small, but you’ve got to recognize that you’re not a mom-and-pop organization,” says Katz. “You need to run your company like a big corporation even if you’re not a big corporation. People respect you when you run an organized business with standardized procedures.”
Read “Making the Sale: Getting Great Clients to Choose You,” available through BuilderBooks.com, for more tips on wowing prospects. To order it, call 800-223-2665 or go online.
NAHB’s Business Management Department offers a variety of online resources to help you run your business better and more profitably. Click Business Management Tools for articles about human resources, financial management, sales, production, technology, customer service and other business-related topics. We’re constantly adding more, so check back frequently.
BuilderBooks.com offers a variety of publications and resources about business management. To view or purchase these publications and resources online, click here.
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University of Housing Offers Courses on Customer Service and Business Management
The NAHB University of Housing offers a course on customer service that includes how best to provide warranties for your customers. For a list of current offerings, click here.
The University of Housing also offers a course on business management designed to help builders improve their business and profitability. For a list of current offerings, click here.
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