September 21, 2005

Randolph Rinehart
NAHB Seniors
Housing Council Chair
Charlottesville, VA

 
SHC Is Now the 50+ Housing Council
How To Help Hurricane Katrina Victims
Outlook on Aging Survey Offers Boomer Insights
Last Chance to Enter Best of Seniors Housing Awards
Plan for 2006 IBS in Orlando
Council and Committee Updates
50+ Housing Council Local and Regional Report
Outsourcing Talent to Build Your Team
Around the Industry: NAHB and 50+ Member News
 
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Outsourcing Talent to Build Your Team
By Adam Rosenblum

Deciding whether to build a marketing and sales team with in-house talent or outsourced marketing assistance is a decision every builder/developer of active adult communities considers during the pre-development phase and planning.

How do you decide what is best for your active adult community and company?

According to Janis Ehlers, president of The Ehlers Group, Inc. an award-winning strategic marketing and communications company in Fort Lauderdale, Fla., the decision should be based on realistic expectations and results.

An in-house marketing team provides the following advantages:

  1. Convenience — They are there when you need them.
  2. Familiarity — Staff knows the corporate culture.
  3. Knowledge — A “been there” and “done that” attitude. Staff knows the geographic area, company’s product, and areas of expertise.
  4. Compensation — Employee salaries and benefit packages are allocated to a variety of projects within the company. 

However, the team may lack knowledge of the subtle differences in the active adult market. It may be to your advantage to support in-house capabilities by adding outsourced consultants.

An outsourced consultant offers these advantages:

  1.  Experience
    “Building a team with experienced outsourced talent saves costly time and money.  There are no learning curves with consultants who are specialized,” said Bill Becker, a strategic marketing consultant for more than 40 years and president of The William E. Becker Organization in Teaneck, N.J.  “We’ve seen what works and what doesn’t. That experience is invaluable.”

    While builders and developers may be experienced, tackling the active adult market segment poses new challenges. Builders and developers can successfully outsource feasibility studies, competitive market analysis, assistance with site selection, and project planning (including amenities). They also can outsource marketing plans and tactics. Staff training, as well, can draw on the talent of experienced professionals to educate your team.
     
  2. Knowledge
    Remember, qualified outside consultants who constantly work with other clients outside your local market or region have knowledge from around the country. They know what works and what may be adaptable to your current marketing program. 

    “Tactics, techniques, solutions, and strategies that save you time and energy place your community on the cutting edge before your competition knows what is going on,” Becker added.

  3. Unbiased, Fresh Perspective
    Builders often believe what worked for them on their last project will work again. There’s an inability to get out of the mousetrap and change. The “that’s the way we’ve always done it” attitude can lead to negative consequences, especially with active adults.

    “These consumers are different,” said Ehlers, who wrote the book Marketing Seniors Housing and has consulted on active adult communities nationwide.  “The product and marketing efforts needed to appeal to the active adult customer is at entirely different levels.” Lifestyle drives this purchaser, regardless of whether the product is a rental unit, condominium, or single-family home.   

    External consultants understand your target market and have the ability to perform SWOT (strengths, weaknesses, opportunities, and threats) analysis without bias based on their varied experience. The information they can access about your competition, or through their network of contacts, may far surpass the resources of your internal staff.

    They also offer feedback to validate what you may sense about your prospective customer.

  4. Morale Boost
    An outsourced consultant can boost team morale. Employees see the company’s commitment to adding value and resources, rather than overburdening employees with the additional responsibilities of target marketing.

    “When a marketing plan for a new community was needed, it became an obstacle for the project director whose plate already was full with any number of responsibilities. Each day,it fell to the bottom of his priority list,” Becker said. “Consultants focus 100% on the specific project and have to meet fixed deadlines.”

  5. Added Value
    A consultant’s team becomes your team. It’s like expanding your company without massive payroll implications. The consultant's team isn’t your responsibility. 

    Forming a team with individuals who know and have worked together creates a team synergy from the beginning. You can have a roomful of talent without a learning curve.
  6. A Leveled Playing Field
    Outsourced consultants aren’t limited to major companies or projects. Small developers and builders have the opportunity to successfully compete against bigger companies. 

    Larry Wood of Wood & Wood Development LLC, a development company based in Longview, WA, has consulted with TEG for a new community.

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    “As a small builder, I was thrilled with the personal attention and thoroughness TEG brought as we moved from merely building a nice neighborhood into designing and marketing our area’s first active adult community,” Wood said. “The outside research validated our plans and provided a plethora of benefits.”

Helpful Tips for Maximizing a Successful Relationship

  1. Maximize the consultant's time — Your consultant may be agreeable to work longer hours at your site or have dinner meetings. A consultant will focus on you when he or she is with you.

  2. Set aside time for the team — Bring all consultants together so everyone can share in the vision for the project. Get everyone on the same page from the beginning so there is a mutual understanding of expectations and deadlines. While it may not seem necessary, there’s a creative synergy that comes from bringing together the architect, land planner, interior designer, and marketing team.

  3. Use the consultant as a sounding board — With a fresh approach and insights into the overall market, the experience a consultant can offer spending a day with you in driving your site, looking at the competition, and giving feedback on initial plans may save you money in the long run.

  4. Give full information — Don’t try to spoon-feed the data or the problems. Be open and give your consultant sufficient time to give you the benefit of his or her experience and wealth of knowledge.

  5. Plan meetings and conference calls with sufficient advance notice — Everyone’s time is of value. Recognize you aren’t your consultant's only client, and it is difficult to respond at the turn of a dime.

  6. Keep your consultant in the loop — Inform your consultant about project updates, changes, and customer feedback.

  7. Have a clear understanding of the consultant's role — Discuss in advance what is needed for your project’s planning and will be provided by the consultant. If your expectations are for a written report summarizing a visit, reach this understanding upfront.

  8. Ask for what you need — You may only need a consultant's feedback on your strategies.  Often one- or two-day visits can be arranged without long-term contracts.

Most experienced consultants have been in your shoes. By maintaining a positive, give-and-take relationship, you’ll soon realize the tremendous advantages and insights a consultant brings to your team, which can ultimately help the community achieve its marketing and sales goals.

About the Author:
Adam Rosenblum is the vice president of sales and marketing for The Palace Management Group, one of South Florida’s top companies specializing in seniors housing and care. Based in Miami, Fla., The Palace’s continuum of care includes communities from Florida to Israel. For more information, e-mail adam@thepalace.org, or call him at 305-270-7000. [ return to top ]

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