Previous in Forum: Tungsten for sale.   Next in Forum: Looking for co-operation
Close
Close
Close
2 comments
Participant

Join Date: Oct 2006
Posts: 2

Trends Builders Profit From...

10/20/2006 1:24 PM

Home trends are the-David who turns into Goliath-of the construction industry. More than whimsical "fads", trends can and do take entire markets for a tailspin. Taking a look into the not-so-distant past we can see homes built without air-conditioning, homes with one bathroom, single car garage, no microwave, and little to no insulation.

Speak to a prospective home-owner today and not only are above features "must haves" but you best include amenities like a dishwasher, garbage disposal, two car garage with remote opening doors, first floor master-bedroom (with a walk-in closet), an entertaining space such as a deck or patio, and please ensure that the laundry room is on the main floor.

These home trends have crept into the building industry and have changed the shape of the modern home. According to the Home Builders Association, "The features that average home buyers want today used to be considered optional and were standard only in upscale luxury homes". The average person decades ago has likewise up-scaled their own lives and is thus looking for these "luxuries" today.

These people are the "Baby Boomers" and they will drive the industry trends for the next 10 years. In 2003 there were 3.5 million baby boomers who turned 55. In 2010 there will be a total of 30.5 million baby boomers who are 55 or older. What does this mean? That the size of the home will get smaller, as retirees opt for less maintenance, and the quality of the homes will increase as they ask for more amenities and luxuries.

Couple this with trends towards greener and healthier homes and you have a market about ready to explode. Builders can study these trends now and prepare and profit from the trends ahead of time. This is the career launching pad for the future builder, the "innovative builder", who is looking for a niche, a competitive edge and increased profits.

The builder of the future will have addressed future trends in his homes, now; plotting along trends lines, nailing down profits all along. Trends are simply an inquiry into the buying customer's mind. This information is readily available to the inquisitive and news-attentive builder.

Homes tomorrow will be more client-centered, or trend-ready. These homes will address concerns of today: flu epidemics, water pollution, environmental pollution, energy conservation, and energy harnessing via solar passiveness and collection, and aging populations who need medical responsiveness, all of which will be addressed by the home builder of the future–or now.

When a builder can accurately foresee trends and position the business to capitalize on them by forming venture partnerships with those providing solutions, then there is synergy. There is innovation. There are problems solved. There are customers served and there is money, waiting on the table.

To learn more about the author, Jeremy SasserCollins and receive tips for general contractors to building more profits, go to http://www.buildingmoreprofits.com

Register to Reply
Interested in this topic? By joining CR4 you can "subscribe" to
this discussion and receive notification when new comments are added.
Anonymous Poster
#1

Re: Trends Builders Profit From...

10/20/2006 4:56 PM

Thank you for your unabashed sales pitch here, Jeremy SasserCollins......

While there may be some truth to your statements, I feel you are trying to sell me a bill of goods with your writing style.

If you feel so strongly about the market (and I'm glad you do), please share more of your thoughts with us so that we may all discuss and benefit from your prowess. Who knows...maybe we can share our knowledge with you and you can be the successor to Donald Trump!!!

Or, maybe you would prefer to share some of your concerns about building and construction?

Register to Reply
Participant

Join Date: Oct 2006
Posts: 2
#2
In reply to #1

The discussion here, if you would like to...

10/20/2006 6:49 PM

Thank you GUEST for your comments.

I would be happy to share more, but first let me explain… The original post is to educate and train building contractors to understand how to use trends in the market. Most contractors are moving behind the trend lines and catch on too late to take in the real profits from emerging trends affecting the business.

Example: If you have not addressed the trend already alive and well in today's market; that consumers want energy efficiency, and you install inefficient products in your jobs, then this will affect your business in ways you have not considered; reputation, resale costs, referrals, client satisfaction, increase cost of extended home ownership, not to mention the "first-in" philosophy (which I will explain).

Having a satisfied customer, a consistent higher resale value and more referrals are the back end profits here, of which you may not attribute to addressing trends, but the market place sure does! Furthermore, the front end profits are only available to the forward thinking, innovative builders. The "First Ins."

Example: If you see a trend coming on, say for security alarm systems and you take notice but fail to form an alliance with a security alarm company then you have left money on the table.

Meanwhile your competitor has done just this. They went down and got a deal made where all alarms installed in his properties were discounted 40%. The installation is less when subcontractors can work during the construction phase, installation is more professionally done instead of having to retrofit everything, you made some profit off of the discounted product price AND you have added value = higher asking price/quicker sale.

Wait a year or two into the trend and try to do this and you will have cut yourself out of the deal making. Security companies can't and won't form alliances with all contractors. This leaves you paying retail, behind the trend and ultimately offering a more expensive home than your competitor, who offers the same features.

But, be the "First In", the innovative, client-centered contractor who goes to the security company owner/manager, strikes a deal, leverages complimentary services and you have created a niche market, added value, more profits and a win (Client), win (Security co), win (You) situation overnight!

Food for thought?

The trick I have been addressing is this: you must learn to leverage complimentary services to reap the dollars that contractors are always leaving on the table. Builders can do it easily and profitably.

To your profits,

Jeremy SasserCollins

PS. If you have not subscribed for my building tips for more profits then you are leaving money on the table. Go to http://www.buildmoreprofits.com

Register to Reply
Register to Reply 2 comments
Interested in this topic? By joining CR4 you can "subscribe" to
this discussion and receive notification when new comments are added.

Previous in Forum: Tungsten for sale.   Next in Forum: Looking for co-operation
You might be interested in: Construction Software, Wallboard

Advertisement