NSMC eNews - 10/30/2007

To stay alive during this very different housing downturn (different because it has nothing to do with high interest rates or high unemployment), you need to dramatically cut overhead and land positions while increasing operational efficiencies. The next most important step to take is to "differentiate" your company and product from the competition.

To achieve this objective, a company must zero in on what makes their company special and focus everyone's attention — consumers and employees — on that distinction.

Now, because of the "buyer's market," builders are focusing on "discounts and deals" and still not communicating to the limited numbers of home-buyers the real difference between their company and the competition.

Small and mid-size builders do not have the financial resources of the national or large regional homebuilders, who can afford to sell homes at cost or below.

Positioning Is the Key

The five steps of "Positioning" are simple. It just takes open eyes and honesty.

1.    What "Position" do you own?
2.    What "Position" do you want to own?
3.    What is your strategy to achieve the
       desired "Position?”
4.    Do you have the resources to achieve your
       strategy/goals?
5.    Do you match our "Position?”

Look how these companies have used “positioning” to stand out from their competition... Nike: “Just Do It,” Greyhound: “Leave The Driving To Us,” Burger King: “Have It Your Way,” and BMW: “The Ultimate Driving Machine.”

Is positioning the "magic bullet" for success? No. But it just may help you stay in business until your market improves.

Remember: Dare To Be Different. You don't have to out-spend the competition — you just have to outsmart them.

Richard Elkman, MIRM, is president of Group Two Advertising, one of the country’s largest real estate marketing companies. He regularly appears as a moderator/speaker at the International Builders’ Show and at major housing conventions everywhere. His articles have appeared in every major real estate publication. Richard is past president of the Institute of Residential Marketing. He publishes the free, bi-monthly marketing and advertising e-newsletter “Challenges & Solutions,” which is distributed to more than 5,000 home building professionals. Elkman can be contacted by e-mail or at 215-561-2200.

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NSMC eNews - 10/30/2007 (Plain Text Version)

Differentiate or Die - Stay Alive In Today's Housing Market