The money. Builders are a herd species. They do what has worked since 1945 when the housing boom started. They advertise in the local paper on Saturdays and Sundays, they put out bandit signs - the roadside directionals with the community name and sometimes an arrow toward the community. When the prospect finds the model home or trailer they give out a brochure with floor plans and a list of standard features and maybe some options. The sales rep is there to encourage placing a lot hold so the folks can meet with the builders rep to talk about the new home.
It is kinda impersonal. Folks have to plunk down $1,000. refundable dollars to meet with the builder to get their questions answered.
Who knows if they even like or trust the builder. They know almost nothing about the builder.
At Work DVD is giving builders a tool that when the prospect goes through the sales cycle they get a DVD Video Brochure to take with them, lot hold or not, and learn all about the builder, the community and the area, so they are not stangers to it all.
A 2 hour, 24 chapter DVD Video Brochure costs $120,000. A 100 unit, $500,000. homes community has a marketing buget on average of 3% or $1,500,000. What the DVD Video Brochure will do is raise sales from 3 units a month to 5. This will make the community sell faster and the builder can raise prices faster and higher, so he makes more money. He should be making 10% which in this case is $5,000,000.
So is it really about the builder not being able to afford a DVD Video Brochure or is it more he will not change his sales formula?
When I was selling, if we could raise a 3 unit per month community to a 5 unit per month community, that would have been a huge accomplishment. Now I just estimate that is what these DVD Video Brochures will do, it might be more. Everyone who watches these DVD Video Brochures is sold on the featured builder. It is that powerful. No printed brochure makes a viewer cry while viewing it. The DVD Video Brochure did. Is that affinity worth $120,000. You bet!
Wednesday, January 30, 2008
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