HH Land Developments was a small company in an exclusive price point for the market. The average house built was priced over $900k. In a market where only 5% of the population could afford a home over $400k, each lead was worth its weight in gold. The annual revenue for 2011 was roughly $4.3MM and below company expectations.
Having been in business since the early 80’s, company reputation was impeccable, but the sales did not represent that.
In a market with fierce competition, 4 key competitors would consistently out-bid HH Land Developments and would offer inferior structural components while maintaining or increasing aesthetic qualities of the home. For example, using OSB sheathing (Oriented Strand Board, a pliable wood) apposed to plywood or dimensional lumber rather than engineered studs, which greatly affected the price. The consumer was not aware of the structural impact of downgrading certain materials.
Customers only cared about aesthetic features and final price.
Draw the clients’ attention to structural shortcomings in the competitors bid without directly attacking the competitor; as that would look unprofessional. At the same time, the client needed to be educated on why the structural components were in the bid and why the investment was necessary over the long term. This needed to be done in a manner that did not bore the customer.
The following solution was created:
In the coming months, sales improved drastically. Clients were committed, happier and the communication was flawless. Moreover, the numbers directly represented this; 2012 annual revenue was $11.3MM, 2013 annual revenue was $12.7MM and 2014 annual revenue was $14.9MM.
Each annual revenue was a company record and in 2014 when the market sales slowed, HH Land Developments was as busy as ever.