Monday, December 16, 2024
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HomeQ&A:Offsite Home Sales: Value Over Price

Offsite Home Sales: Value Over Price

This sales professional says that offsite builders can improve their sales results with the Critical Path method.

 

  • Offsite builders should learn to weave the benefits of their approach to building into each phase of the Critical Path method.
  • This is important because some buyers will struggle to understand the value that offsite building offers.
  • The unique value proposition of this approach should also be showcased in the builder’s sales collateral.

If you happen to ask a homebuilding professional how they became involved in the industry, you might hear, “homebuilding found me.” That’s according to Kimberly Mackey, Owner of New Homes Solutions in Tampa, Florida and this statement certainly applies to her.

Mackey migrated from a start-up, consumer-direct company (home shopping and delivery) to real estate sales in the late 90s, then earned her real estate license in the early 2000s. One day a co-worker told her that she had a knack for new home sales and she hasn’t looked back since.

Founded in 2007, New Homes Solutions is a consulting and training company that specifically helps new construction builders and developers maximize their sales programs by enhancing operational efficiencies through the implementation of repeatable processes.

Very active in the National Association of Homebuilders (NAHB) and the 2023 Chair for the NAHB Associates’ Committee, Mackey is currently on the Leadership Council.

She also is an Associate Director for the Florida Home Builders Association (FHBA), representing her local chapter of the Tampa Bay Builders Association (TBBA). She is past Chair and Life Director of the FHBA’s Sales and Marketing Council and TBBA’s Sales and Marketing Council.

In 2020, Mackey received the John P. Hall Award for lifetime achievement in sales and marketing. In 2017, she was named FHBA’s Associate of the Year and is a multi-time winner of the SMC Member of the Year award.

Mackey is a member of the National Association of REALTORS® and Professional Women in Building.

Mackey and I became acquainted years ago when we shared the same scattered lot building client. In this conversation, she speaks of the importance of selling value over price and of creating a Critical Path for customers by appealing to their sense of values and benefits to their life.

Kimberly Mackey is the Owner of New Homes Solutions, a sales consulting company expressly for builders and developers in new home construction.
Photo courtesy of New Home Solutions

Q: Kimberly, in today’s competitive housing market, how crucial is it for offsite/system builders to shift their sales approach toward emphasizing value over price?

A: It’s absolutely essential. Buyers today are more discerning and have higher expectations than ever. They’re not just looking for a house; they want a home that aligns with their lifestyle, values and aspirations. Merely competing on price is a race to the bottom that commoditizes our offerings.

Instead, we need to showcase the unique value propositions that offsite/system-built homes provide, whether it’s through customization, sustainability, technology integration or simply a superior building process.

Of course, it is critical that we start the conversation with budget when getting to know buyers. However, once we understand their budget, we can then get down to understanding how their expectations align so we can guide them through the process to maximize their budgets by prioritizing needs first, then wants.

Q: You’ve mentioned the Critical Path method as a framework for achieving this value-driven approach. Could you explain what that method is, and why it’s relevant for offsite builders?

A: Absolutely. The Critical Path is a structured sales process that guides buyers through a journey, starting with building rapport during the meet-and-greet phase, then diving deep into their wants, needs and lifestyle factors during discovery.

If you pay attention, customers lay bread crumbs, or clues, that can serve as a guide for the salesperson in mapping out factors that are motivating them to look for a new home. These breadcrumbs lay the foundation for presenting tailored solutions, demonstrating the value proposition and ultimately guiding them toward selecting their dream home.

The Critical Path allows us to take them on a comprehensive value journey, leveraging technology such as virtual tours, 3D renderings and immersive showrooms to bridge that imagination gap.

Q: Could you walk us through a specific example of how an offsite builder could apply the Critical Path to maximize perceived value?

A: Sure, let’s consider a scenario in which a buyer values sustainability and energy efficiency. During the discovery phase, our sales team would uncover these priorities through thoughtful questioning and active listening. [For example, “What aspects of sustainability are most important to you?”]

In the presentation stage, you could then showcase the benefits of offsite construction processes compared to traditional builds: good blower door test air exchange results, minimal waste, the incorporation of energy-saving materials like energy efficient windows, the building techniques [that ensure these results], etc.

During the demonstration phase, you could leverage virtual reality to immerse the buyer in their future home, allowing them to experience first-hand the natural lighting, smart home features and other eco-friendly elements that align with their values.

Finally, in the selection process, you could offer customization options that further enhance the home’s sustainability credentials, such as solar panel integration or water-efficient landscaping.

At every step, you’re reinforcing the value proposition that resonates most with this particular buyer, ultimately justifying the investment in ways that transcend price alone.

Q: For sales teams looking to adopt this approach, what would you recommend as first steps?

A: First and foremost, invest in comprehensive training on the Critical Path method and active listening techniques. Role playing is essential, but remember that, as Vince Lombardi once said, “perfect practice makes perfect.” If you practice doing things incorrectly over and over, you just get really good at doing things the wrong way.

You need to equip your team with the skills to uncover buyer motivations and craft compelling value narratives, [such as the Master in Residential Marketing classes that are regularly offered through local Home Building Associations].

Secondly, ensure your sales collateral, whether digital or physical, showcases the unique value propositions of your offsite building process. This could include case studies, virtual tours and succinct value statements that resonate with different buyer personas.

Finally, encourage a culture of continuous learning within your sales team. Have them stay abreast of the latest trends in sustainable living, smart home technology, design innovations and more. This will allow them to confidently speak to the evolving desires of modern homebuyers.

Q: Any final thoughts for our readers on embracing this value-driven sales approach?

A: Remember, we’re not just selling houses; we’re selling dreams and lifestyles. By truly understanding our buyers’ aspirations and aligning our offerings accordingly, you transform the sales process from a transaction into a partnership.

The Critical Path provides a roadmap, but it’s our emotional intelligence, creativity and commitment to delivering exceptional value that will set us apart in an increasingly competitive landscape.

Embrace this mindset wholeheartedly, and you’ll find that conversations shift from negotiating prices to co-creating living experiences that resonate on a deeper level with your buyers.

Kimberly Mackey may be contacted at [email protected]

 

Reed Dillon is a content brand specialist, marketing consultant and freelance writer that focusses on offsite and new construction. He is the owner of Creative Brand Content in Moneta, Virginia. Contact: [email protected]

 

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