HH Land Developments - Rose Garden Consulting

HH Land Developments

HH Land Developments

The Situation

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.

The Challenge

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.

The Solution

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:

  • Initial customer contact was made by Rose Garden Consulting.
  • Upon completing the initial presentation and gathering data on what the client wanted to build, a follow up meeting was arranged.
  • Rather than sending the quote to the client based on requests for features, the client was asked to take part in the planning of the home floor plan. This would have the client more invested in the process and thus less likely to move to a competitor after a price was derived.
  • An initial non-refundable deposit was taken from the client at the early stages of the process. This was different from industry practice, as all the competitors would take a deposit that was refundable. This was the key stage to execute with precision and flawless sales technique. Once a deposit was taken, the presentation of final price was in essence a formality as we were assured the client would not back away from the deal.
  • Rose Garden Consulting completed all steps in conjunction with HH Land Developments. The client hand off would occur after the second stage payment and the builder would complete the transaction after RGC and a firm and unwavering commitment from the client.

The Benefit

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.

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