If you have received correspondence or contact from the “National Home Builders” or the “National Directory of Home Builders,” recognize that these organizations have no relationship with NAHB and are not part of, connected with or related to NAHB in any way.

Any and all correspondence from NAHB will always include the full name “National Association of Home Builders” and/or the genuine NAHB logo. 

For questions or concerns about any correspondence or contacts you may have received, e-mail William Deiss at NAHB, or call him at 800-368-5242 x8231. [return to top]

The downturn in sales in the current housing market has left home builders asking one question —What do we do now? One answer can be found in your builder’s staff.

“The new home market has changed, and the prospects’ attitudes have changed.  Unfortunately, most salespeople have not changed as they continue selling the same way they did in a robust market.  It is a recipe for poor results,” said Martin Freedland from the Berke Group.

The Berke Group’s study “Separating the Best from the Rest,” was used as a base for the information found in this article. It shed light on the hiring practices, such as “manager bias,” that employers fall victim to when hiring their staff. Consequently, employers don’t hire competent staff and don’t attain their full productivity possibility. To avoid this, The Berke Group described several strategies according to an individual’s personality and talents that can be used when hiring staff. (The detailed study can be found at www.berkegroup.com). 

The Berke Group emphasizes that a sure way to get the ball rolling – ensure staff is comprised of competent members who are suitable for their positions. Positions that involve customer interaction ought to be most scrutinized. These key positions include: new home sales consultant, construction superintendent, and customer service representative.

“In our national study, we found well over 50% of the salespeople do not have the personality and talents to sell homes in a competitive market.  Many of these people were successful in boom times.  There is no question the market is tougher, but much of the blame for poor sales is the salesperson, and hard data confirms this,” said Freedland.

Distinguishing between a top-performing employee and an average-performing employee in these three key positions is based on the personality qualities and talents that the employee possesses. For the most part, top performing people are producing much higher results in this challenging market. According to The Berke Group, there are personality attributes and talents that are common amongst top performing new home sales consultants, construction superintendents and customer service representatives.

The New Home Sales Consultant

The personality traits the new home sales consultants exhibited in a booming market do not necessarily work in a declining market. This is one of the struggles employers face. Consultants should demonstrate high sociability, and most do. However, the strongest and most productive sales consultants also have positive levels of assertiveness, structure, idea productivity and rapid fire problem solving.  The Berke Group describes sociability as a natural tendency to react spontaneously and to express oneself outwardly versus being deliberate and patient. When interacting with other people, sociability, and assertiveness are critical for success. However, an overly assertive consultant can jeopardize a sale by seeming too pushy. Consultants should possess rapid fire problem solving, or the ability to intuitively and quickly solve many problems, one after another. Any concerns the customer may have may require quick actions.

The Superintendent

Unsuccessful superintendents tend to have fast-acting personalities where they jump from issue to issue. It is better for superintendents to operate calmly to effectively solve situations that may arise. The study demonstrates that there are two personality qualities predictive of success for superintendents: logical problem solving and assertiveness. Logical problem solving is the ability to think through problems in a step-by-step, methodical way as opposed to rapid fire problem solving, which is much more “knee jerk.” Superintendents are typically given complex problems to solve; their ability to logically problem solve is significant to their success on the job. In the study completed by The Berke Group, nearly all unsuccessful superintendents had low levels of logical problem solving skills.

The Customer Service Representative

Customer service is a vital part of any business. As shown in the study, the representative serves as a connection to what home buyers need and their experience purchasing a home with the business. Assertiveness, sociability, and rapid fire problem solving skills have been proven to be highly effective in the right situations. Customers can be very demanding, and the representative ought to be able to handle even the most difficult of customer. This requires rapid fire problem solving, as not much time is given in the context of interacting with the customer. In addition, unruly or abrasive customers require that the representative be firm and clear about what is and is not offered which requires assertiveness.

Screening for the different personality types needed in your workforce will allow for an increase in productivity and sales as well as getting ahead in the current highly competitive market. The Berke Group warns that “manager bias” is a common pitfall of employers. Managers who hire employees with personalities most similar to themselves fall in this category. The downfall of manager bias is that typically the employees hired don’t always have personalities that are most suitable for their positions. With sales down as much as 50% as indicated by the study, it is necessary for employers to have an adequate staff to measure up to the difficult tasks at hand.

Felicia Harris is the NAHB Business Management and Information Technology Department's summer intern. She's currently studying business at University of Maryland. [return to top]

Do you view computers and software as a way to improve your business or as an obstacle? Your outlook dictates how well technology can help run your business. Technology becomes more valuable once you understand where and how it can help you.

Ask yourself four questions:

• Do you use computers to communicate with your vendors and home buyers?
• Do you use software for calculated and repetitious tasks like estimating and accounting?
• Do you use software to organize daily activities like schedules and task lists?
• Do you use software to integrate business functions like budgeting, tracking selections, purchasing and reporting?

There is no paradigm to determine the exact level of technology for your company. It is something you should evaluate on a periodic basis. As you begin using more technology, you will discover more ways it can help you become more efficient, save time and improve your business.

Target areas of improvement:

Computers and software are most beneficial when used for the following:

• Speeding up and systematizing repetitive tasks.
• Performing calculations and complex functions.
•   Sharing information and communication.
• Organizing and documenting.

You should evaluate the types of software tools available to help run your business whether you are a one-man custom home builder or part of a larger company building hundreds of homes. Compare your needs to the capabilities of available software to find the level of technology that’s right for you.

Three Levels of Software Implementation

General and Flexible

Most builders start by using a combination of Excel, accounting and email. Excel can be used to manage lists like schedules, task lists and punch lists, as well as performing calculation functions like estimating. Accounting software, like QuickBooks, can be used for purchasing, budgeting and cash management. E-mail can be used to communicate with, and transfer documents to, trade partners and home buyers. These flexible software applications can be used to meet specific builder needs and are a good starting point.

Application Software

Numerous software applications are available to meet specific needs of builders. Applications include drafting, estimation, punch list, scheduling, change orders and more recently selections and warranty. These applications can be very efficient as they are designed to meet very specific needs and are easy to implement.

Integrated Solutions

Once your business reaches an elevated plateau, you will want to use an integrated solution.  Efficiency jumps once information flows seamlessly through all your business functions. Selection information flows to estimating, sales and purchasing. Change orders in the field can electronically be transmitted and flow to the budget and schedule.

A great place to learn what is available is NAHB’s Technology Solutions Directory. You will be able to find applications to meet your needs no matter what technology level you need.

Business management applications:

Examples where technology can benefit a builder’s business management include the following:

• Accounting and estimating
• Scheduling  and change order
• Task lists and punch lists
• Selections and options
• Distributing blue prints, documents and pictures

Selection decisions or schedule changes are good examples on the use of different levels of technology.  Calling all effected parties is time consuming and prone to lose details.  Faxing is almost as slow but at least is a documented record. Emailing multiple parties is fast and well documented, but not organized and requires your input. Application software can automatically notify all parties instantly and accurately. Integrated solutions can further update effected functions like purchasing requirements and task lists.

If you use technology to improve the efficiency of your business, your construction process can become a tool to wow your customer, increase profits, eliminate confusion and keep your business on track.

Andy Elsbury is the founder of Custom Partnership Network, Inc., which provides consulting services and solutions for home builders to improve their building process. You can learn more by going online to www.selectionware.com, or call or e-mail AndyE@SelectionWare.com, 866-585-9222. [return to top]

With rising energy prices, consumers have growing interest in green solutions. Builders and remodelers can help lower their customers’ energy bills — and raise their “green” profile — with Energy Star qualified products. Produced by all the major manufacturers, these products are designed to use less energy than other products on the market. Through Quantity Quotes, builders and remodelers can now buy many Energy Star products in bulk for less.

A free service of the U.S. Department of Energy, Quantity Quotes helps purchasers find suppliers quickly and then negotiate a contract at a competitive price. A contract may also ask the vendor to make multiple deliveries to multiple locations over a period of time. This means builders and remodelers can buy products in bulk without having to warehouse them.

Quantity Quotes currently covers seven energy-efficient products: clothes washers, dehumidifiers, dishwashers, light fixtures, light bulbs, refrigerators, and room air conditioners.

Over 140 suppliers are registered, including Best Buy, GE, Sears, and Whirlpool. Purchasers generally solicit quotes on 50 items or more, but there is no minimum number of products a purchaser can request.

Suppliers respond with their best offers, knowing that they are competing against one another. Buyers may submit their requests anonymously, so suppliers can’t contact the buyer first. Quantity Quotes also offers customized forms that help purchasers describe exactly the product they want, which helps avoid miscommunication with suppliers.

Many buyers find new suppliers that they can use repeatedly.

“It is a very useful networking tool,” says Melinda Robertson of Actus Lend Lease in Nashville, Tenn. “We made an initial purchase from a supplier we found on Quantity Quotes, and we intend to continue to use the same supplier to fulfill future orders.”

For further information, contact Dana Schallheim at dschallheim@drintl.com.

Lani MacRae leads the national Energy Star communication and marketing effort for the U.S. Department of Energy, which is working toward the realization of marketable net-zero-energy buildings through the development of energy conservation technologies and practices. [return to top]

In "Option Selling for Profit: The Builder’s Guide to Generating Design Center Revenue and Profit," authors Gina Gullo and Angela Rinaldi share their hands-on understanding of high-powered selling in the ever-expanding market of options for new homes. This book shows readers how to:

• Create an option sales program that motivates customers to buy
• Capitalize on options and upgrades programs to increase bottom line
• Empower the sales team with the tools they need to succeed
• Cultivate loyal customers
• Deliver outstanding customer service
• Implement a profitable design program no matter the size of the company

"Option Selling for Profit" also provides access to a Web page with 19 downloadable tools that can be customized to suit specific needs.

This is the definitive guide for builders to generate Design Center revenue and profit.

“From pricing to sales presentation, this book will help you learn how to sell options and increase your bottom line,” said S. Robert August, president of the S. Robert August & Company and the Institute of Residential Marketing.

To view or purchase this publication online, click here, or call 800-223-2665. [return to top]