Nation's Building News Online

Plain Text Version (Click Here for Graphical Version)

Sponsored by Countrywide Home Loans National Builder Division

www.NAHB.org
Week of November 22, 2004

Front Page

* Changing Leadership of 109th Congress Likely to Renew Impetus for Housing Initiatives
* Tell a Friend About the NAHB Web Site
* Building Material Shortages Persist, But Don’t Appear to Be Getting Any Worse
* Housing Snapshot

President's Message

* The Elections Provide a New Foundation for Achievement in Housing

Housing Politics

* Congress Responds to Housing Concerns Before Passing Highlands Conservation Act

Housing and Economics

* October Housing Starts Galloping Toward a Rousing Finish for 2004
* Builder Confidence Holding Strong and Steady in November
* High Housing Prices Putting Californians on the Move, Survey Finds
* Eye on the Economy

Housing Finance

* NAHB Task Force on Housing Finance Reform Seeking Input from Association Members

Sales and Marketing

* These ABCs Help Lead to Model Home Merchandising Success

Business Management

* How to Implement Controls That Will Help Protect You From Fraud

Seniors Housing

* Team and Performance Matter When Selling to the 55+ Market

Small Builders and Remodelers

* Technology — Can't Live With It, Can't Live Without It

Builders' Show

* tecHOMExpo™ Will Help You Get Your Tech Together

Green Building

* Entries Sought for National Green Building Awards

Labor

* Home Building Students Hear From Leaders in the Industry

Building Products

* Wood Composite Doors Leading New Trend in Garages

Builder's Engineer

* Do Consultants Cost You Money?

Building News Coast To Coast

Association News & Events

* Anchorage Builders Share the Holidays With Needy Children
* NAHB Winter Board Meeting Schedule Announced
* Save 50% on NEBS Holiday Cards, Calendars and More
* Awards Programs Deadlines
* Calendar of Events

NBN Back Issues

 

These ABCs Help Lead to Model Home Merchandising Success

S Is for Sophistication

When it comes to merchandising models for entry-level and first move-up product, experience matters.

Not the builder’s or merchandiser’s experience, although both are obviously important. What drives design for this market today is the increasingly sophisticated and experienced new home buyer.

Data from "VISION 2002: The New Home Buyers Survey," which was conduted by Color Design Art, Eliant Research and The Meyers and completed in May 2002, revealed that 62% of the respondents from the Western states who had purchased homes priced under $250,000 had previously owned at least one home and 30% had owned two or more. In other words, “entry-level” buyers are bringing more knowledge and higher expectations to the purchasing process than ever before.


Sponsored by: Countrywide Home Loans

Discover how Countrywide's family of companies can provide all the financial services you need.
Find out how our Interest Only home loan programs can get qualified borrowers the lowest payment possible.

Even true first home buyers are more experienced about design, thanks to catalog shopping, the Internet and stores like Crate & Barrel and Pottery Barn, where good design is both available and affordable. Even shoppers at Target can find everything from woven wood window coverings to coffee tables designed by Michael Graves.

U Is for Unique

How do you win over these style-savvy new-home buyers? Determined to appeal to the retail-oriented, entry-level buyer, the John Laing Homes South Coast Division decided to hire a major furnishings retailer to bring a youthful, upscale look to its new models at St. Mays Road, an entry-level attached product in the master planned community of Ladera Ranch in Orange County, CA.

St. Mays Road is a unique community of three-plex buildings, each with two two-story townhomes and one carriage-unit flat. The architectural design of these buildings allows each home to have its own separate entrance and private garage, even the stacked carriage unit. This innovative design gives these attached homes a sense of privacy typically associated with single-family detached homes.

With such distinctive architecture to work with, it was the builder’s goal to use the partnership with a major retailer to give the project a unique marketing position. The thinking was to have the retailers furnish the models with furniture and accessories the buyers could then walk into the store and duplicate — a win-win situation for both builder and retailer, right?

Well, maybe. Local store representatives were enthusiastic about furnishing the model homes, but as team meetings progressed, the realities of what would be involved proved to be overwhelming. Designing three models aimed at a specific target buyer, each with a distinctive and memorable look and under the time constraints given was more than the retailer was willing to bear. The retailer’s corporate office didn’t see the endeavor as valuable to the company in the same way the local staff did. Ultimately, what looked like a winning strategy for this project proved too cumbersome and difficult to execute for the retailer. Unfortunately for John Laing Homes, the retailer abandoned the effort with only four weeks left to the grand opening! A new strategy had to be pulled together quickly.

C Is for Challenge

Fortunately; another strategy was already partly in place. Anticipating that the retail designers would be unfamiliar with model home design, including production needs, finish specifications and optional upgrades, John Laing Homes asked Don Anderson, president of Color Design Art (CDA), to act as a consultant to guide the process. With little more than a month to go before opening, Susan Drews, CDA senior vice president and her team took up the challenge. The key was to create models that would appeal to young single professionals and couples as well as move-down empty-nester couples and young families with one or two small children. They set out to create look sophisticated enough to capture the hearts of these buyers, yet the atmosphere needed to be accessible.

C Is for Customize

CDA created three different “looks” to customize the homes to the distinctively different life stages of the prospective buyers with each “look” using achievable furniture and addressing each home with “wall-to-wall” design.

Where possible, furnishings were included from the original retail source. For example, in the two-bedroom carriage unit aimed at a young, single professional man, the home office featured freestanding bookcases rather than a custom built-in, a very contemporary (and cool) metal desk on wheels and artwork and accessories from the retailer.

Next CDA specified finishes showing a range of materials that would enhance the perceived value of the homes and still be affordable to buyers in this market. Each home featured different countertop treatments: A stone-look porcelain tile in the Plan 1 kitchen; a decorative tile in Plan 2; and a solid surface in Plan 3.

Hard-surface flooring demonstrating value-priced materials was used to create the sophisticated look expected by this market as well as to direct traffic flow. Accent paint was used to highlight walls, establish ambiance and demonstrate an effective yet inexpensive way for these buyers to customize their new homes.

E Is for Enhancing Architecture

Finally, to underscore the unique privacy aspect of these attached homes, the interior stairways were treated as an important space, rather than just a traffic conduit. The stairway for Plan 1 was actually the entry to the upstairs carriage unit. It was painted with warm earthtone accents and then highlighted with colorful, oversized contemporary poster art. The stairway became an art gallery visually inviting buyers to climb the stairs to see the rest of the home.

In the Plan 2 townhome, the stairs featured architectural pot shelves that were highlighted with accessories and art. More importantly, CDA converted the original bedroom at the top of the stairs to an optional loft that would open this interior staircase and bring in more light. Since this was an empty nester home, it provided a wonderful home office space, made the stairs friendlier and still left the third bedroom to be merchandised as a guest room. The strategy demonstrated all of the home’s usable square footage.

S Is for Success

While the original strategy for using a national retail firm for the design and merchandising of the homes at St. Mays Road didn’t succeed, the restrategizing did. According to Marianne Browne, vice president of sales and marketing for John Laing’s South Coast division, “The merchandising for these models hit our diverse market more accurately than any we’ve ever done before. The design reflects their lives and lifestyles in a way that the retail store never could have achieved. That is confirmed by the fact that each floor plan is selling equally well.”

S Is for Strategy (and a Back-Up Strategy!)

The lessons learned from this experience are really two-fold. First, if you are going to try an innovation such as partnering with a retailer to furnish your models, do your homework early. Make sure your potential partner understands your market, can respond to your production needs and has the same ultimate goals and understanding you do. In other words, make sure your partner is a team player.

Second, always have a back-up strategy in place if your first strategy doesn’t work out. Remember that designing for the entry-level buyer is getting more demanding and challenging. The right merchandising strategy can make all the difference.

Ava Carberry, MIRM, is a principal at Color Design Art of Pacific Palisades and Thousand Oaks, CA. Color Design Art specializes in model home merchandising firms and interior design. Carberry also serves as guest editor of NAHB’s "Sales + Marketing Ideas" magazine and is a former chairperson of the National Sales and Marketing Council publications committee. For more information, call Carberry at 310-459-7844 or visit the Color Design Art Web site at www.colordesignart.com.

Originally published in NAHB’s "Sales + Marketing Ideas" magazine ©2003.


Subscribe to 'Sales + Marketing Ideas' Magazine for Cutting-Edges Information

For additional cutting-edge sales and marketing information, subscribe to NAHB’s "Sales + Marketing Ideas" magazine. Call 800-368-5242 x8192 or visit www.smimagazine.com to subscribe or order a copyClick here to learn about membership benefits of the National Sales and Marketing Council and the Institute of Residential Marketing.

The Institute of Residential Marketing Offers Courses and Designation Programs for Sales & Marketing Professionals

The Institute of Residential Marketing (IRM) offers four designation programs for sales and marketing professionals:

  • The CMP and MIRM designation programs for new home marketing professionals
  • The CSP and MCSP designation programs for new home sales professionals

For more information on these designation programs, click here.

'Build a Successful Sales Program,' Available at BuilderBooks.com

The path to a highly productive and smoothly running sales program starts with creating an organized onsite sales center. "Build a Successful Sale Program," available at BuilderBooks.com, describes the systems that make a successful sales program system and the forms that are used to support those systems. It also provides the actual forms to use and customize. Builders, their sales personnel and real estate agents who use these systems and forms regularly will operate a more streamlined and efficient sales center. To view or purchase this publication online, click here, or call 800-223-2665 to order.

BuilderBooks.com Offers Sales and Marketing Publications Online

BuilderBooks.com offers a variety of sales and marketing publications online. To view or purchase these publications, click here.


[ Go to Top ]

Sponsored by: Scheduling Software

The easiest & most affordable way to increase your productivity.
Download a Free Trial !!
Keep all your critical schedule and job site info on your pda.
The only limitation is the contractors imagination.

To unsubscribe or to manage your subscription, CLICK HERE

Nation's Building News Online is produced and distributed by the National Association of Home Builders