Your model homes are tools for more than just selling homes. If you don’t have a design studio, your models ARE your design studio showroom. If you DO have a design studio, your models are an extension of your showroom floor.

Models (preferably professionally-merchandised models) SHOULD, first and foremost, sell homes. That means they should highlight the architectural strong points of the floorplan, appeal to the target market’s sense of lifestyle and design style, assist buyers in understanding the plan’s possibilities, and help buyers come to the conclusion that “this home is the right solution for me/my family.”

Nothing happens, with personalization or any other aspect of homebulding, until there is a SALE. But most models I see in my travels all over the country and Canada, don’t powerfully communicate the builder’s promise to support their buyer’s needs to personalize their home, to convince buyers that they WILL be able to get a home that’s “just right for them”.

I was a Vice President for a major interior merchandising firm for many years before I opened Success Strategies, and I supervised literally hundreds and hundreds of model home specification meetings and installations around the country. I know that a talented, smart merchandiser plays a critical role on your marketing team and in the ability of your model homes to convert prospective buyers into real buyers. But are YOU, the Builder or Marketing VP, providing enough strategic direction to your merchandiser regarding the depth, breadth, and specifics for the products you want to showcase in each of your model homes?

Here’s just one example: if your model home has a powder room, hall bath and master bath, are you showcasing a different faucet, sink, cabinet style and finish, counter material and color, counter edge profile, vanity light fixture, mirror, flooring, toilet, and plumbing fixtures in each of those three bathrooms? Believe me, I understand and support, that the style of the model, and other factors should influence the interior specifications, but don’t take the easy way out.
• For example, if your merchandiser wants an espresso finish on the cabinets in all bathrooms, then show different cabinet styles in the three bathrooms, but all in espresso finishes.
• If your merchandiser wants to use brushed nickel faucets and vanity light fixtures throughout the model, then perhaps the master bath and powder rooms can show higher level faucets while the hall bath can show the included faucet in that finish (again, provided the style works with the rest of the home).
• Or perhaps the finish doesn’t need to be the same in all bathrooms at all…maybe each bathroom can have it’s own unique personality and still support the style and intent of the model overall.

When I picture your top-notch New Home Specialist demonstrating the model home, I picture him or her saying things like “Mr. and Mrs. Lopez, our model homes feature just some of the many high-performing products available in our state-of-the-art design studio. You can choose from our quality Included Features or from the numerous Available Personal Choices reflecting a variety of styles, finishes, and investment amounts. Here at Builder X Homes, we’re excited to help you get more of the home you really want.” But that powerful speech doesn’t resonate very much if the model doesn’t appear to show much choice.

Do you encourage your homebuyers to go back through the model(s) after they have purchased a home, as part of their preparation for their personalization experience? If not, then this conversation might be occurring in your design studio: As Mrs. Smith tries to make a final decision on a floor tile, your Design Consultant says: “Mrs. Smith, that tile you’re considering was actually showcased in the hall bath of the model at the neighborhood where you bought.” And Mrs. Smith replies “Oh, we didn’t like that floorplan, so we never went back into the model after we saw it the first time.” OUCH. Big missed opportunity for you, for Mrs. Smith, and for that trendy floor tile. Make sure your homebuyers are visiting all applicable model homes (with proper written notification regarding how features and options may vary between neighborhoods, etc.) prior to their final design studio appointment.

Do you give your buyers a detailed list of every single product showcased in each of your model homes so that you avoid your design consultant having to say “don’t you remember that tile/counter/trim package/shower/fireplace mantle/surround sound/dining room lighting fixture/stone/ceiling detail/cooktop/fill-in-the-product-name was shown in the model home?”

Remember, when that product is seen “in situ”, ie in the environment in which it is intended to be seen and used in the real world, it is so much more powerful than seeing a material sample. This is why design studio vignettes and simulated lifestyle environments are so compelling and successful.

Does that list of model home products use powerful and compelling language and nomenclature to identify each product and whether that product is “included” or “available”?

Do you have a defined procedure to ensure that your new home sales team walks through your model homes every week, noting any items which need to be fixed, adjusted or touched up? I believe that every potential homebuyer deserves to see your model homes in the pristine condition that you rigorously demanded for your Grand Opening Day. That’s why, years ago, we created our “Every Day is Grand Opening Day” checklist, part of our Opt4Excellence process improvement program. To get your free copy, go to http://opt4success.net/free-resources/seminar-downloads/ and enter the code “Grand Opening” and you’ll instantly receive a free copy of this valuable guide. Remember that the 245th prospective buyer and the 857th prospective buyer are just as important as the first one.

And one more question:
Is every product showcased in your model homes still available and still desireable? If your models feature discontinued or outdated products, you are wasting valuable retail space and doing a disservice to 1)your homebuyers and 2)your ability to sell homes and 3)to sell options. I realize budgets are tight these days, but pay more attention to your model homes and partner with your suppliers to make sure your model homes tell your buyers that you are a leading builder, on top of performance and design trends, who is committed to helping them get more of the home they really want.

If you answered anything other than “yes!” to the above questions, then it’s time to take a new, deeper, and more strategic look at your model homes. You may see more model home traffic this year than in the past few years. Make sure your models, your sales team, and your design studio are ready to maximize that opportunity.
 

Want to learn how to leverage your models, design studio, and personalization experience to sell more homes?

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Bob Mirman is CEO and founder (1984) of Eliant, Inc. His firm has assisted over 600 builders, lenders, and design firms to systematically deliver a “WOW!” purchase and ownership experience to every customer, thereby turning delighted customers into referral generators. Home builders working with “Eliant Certified” vendors can be assured that their home buyers will be more willing to refer a friend to their builder. Eliant’s clients have included most of the top 25 home builders; numerous title, escrow, design, and mortgage firms; as well as many Fortune 200 firms such as General Motors, BMW, and IBM. Recognized as one of the industry’s premiere speakers, Bob is a familiar face on the stages of IBS, PCBC, and the boardrooms of many of the nation’s consumer-driven companies.

After several decades of asking almost two million homebuyers from over 600 builders to evaluate their design center and options selection experience, we have developed a pretty specific picture of what it takes to “WOW!” the homebuyer…and WOW’d! homebuyers are much more likely to refer their friends to their builder.

Here are the most common complaints about the design selection and options experience, as identified by homebuyers on their surveys:

1. Price gouging
2. Incomplete information about available options
3. Insensitivity to the homebuyer’s budget
4. Too little time to decide on which options to purchase
5. Design consultants who appear more interested in pushing options in order to make a commission

So, based on best practices employed by our highest scoring builders, here is a short list of some of the key ‘design-consultant skills’ we highlight in our “Eliant Certified” training workshops:

1. Even in this economic environment, your design and options process should be a profit center. You know that, and every homebuyer understands that you are in the business to make money. None of your customers will be upset when you charge fairly for your products, especially for things they cannot easily purchase at Home Depot or Best Buy.com. In fact, they will thank you for it.

But, the problem erupts when you charge exorbitant fees for things like a flat screen TV, appliances, and other items for which they can very quickly check the retail price on line. And when they confirm that you are gouging them on such items, they will then assume you are also doing the same on the custom bookcases and countertops and flooring and window treatments, etc. Once your customers believe you are unscrupulously taking advantage of their ‘captured’ position, their evaluation of the entire purchase experience will be diminished, and will most certainly affect their ‘willingness to recommend’ you to a friend.

So, charge what you consider to be reasonable fees for items in which there is a custom or service component (e.g. custom cabinetry; home office desk; upgraded wiring), but be realistic about the items the buyer can simply have delivered by Best Buy in 48-hours.

2. Make a point to inquire about and consider the buyer’s budget. And, even when the buyer can state this budgeted amount, do not act as if your goal is to spend all of this budget and more. Work with each buyer as if he/she was you sister or brother; look out for their best interests. Earn credibility by suggesting that the buyer NOT spend money on some items which you know will not be in their best long-term interests. Do not allow the buyer to feel that you are more interested in spending their money (i.e. earning a commission) than you are in helping them to design their dream home. And, if you are not on commission, let the buyer know this up front!

 3. Above all else, sell your value as much as you sell your products. In your introduction, tell each buyer:

1. I am or am not on commission
2. If you are on commission, remind the buyer that you are, nevertheless…
1. Working for the buyer, and that your only goal is to make sure that the buyer ends up with a beautiful, affordable home.
2. You will not push the buyer into a decision; your role is to suggest, to assist, to consult
3. Describe your role as a ‘design consultant’. What does this include or not include?
1. Example: Do you personally check the home before move-in to ensure the options are properly installed? If so, let each buyer know.
4. Set expectations that you intend to BEAT, not just meet.
1. For example, promise the buyer that you will return all calls within 24-hours because – most of the time – you know you should be able to return calls within the same day. When you promise 24-hours but do it in 12-hours, you have “WOW’d!” your buyer, and this will yield future referrals.
5. To help justify your fees – and underscore your value – discuss the many advantages of working with the builder’s design center or flooring company, including but not limited to…
1. Warranty
2. Control over scheduling
3. Installation quality
4. Design consultation on color and style and product choices
5. One-stop shopping
6. All installed on move-in day

The Buyers Speak: No one knows more about the design selection experience than the homebuyer. As a means of giving Eliant’s recommendations some clarity and credibility, here are some actual verbatim comments from recent homebuyers of over a dozen Eliant client builders.

And with apologies to Clint Eastwood, Lee Van Cleef, and Eli Wallach, here is The Good. The Bad. And, without question…The Downright Ugly.

The Good

She was very helpful and explained everything and gave us the time to make up our own minds about what we wanted. How much we spent on extras did not seem to be the point with her, it was our satisfaction that mattered. That is a great way to do business. Would I recommend her to other people? You bet I would!

Thanks to Theresa Reed I love, love, love, my flooring!!! She knows her job. Her suggestions were outstanding and she was patient to answer all of my questions, letting me make selections at my pace. We had fun during the process and I now have awesome flooring.

Just like the way we want it. This was one of the best deals we had and the reasons for positive recommendations we have given to friends and tentative buyers.

We took quite a bit of time at the design center. I never felt rushed or pressured to make a decision. I am very pleased with the outcome.

Virginia also met us on a Saturday morning at 7 am. just to accommodate our work schedules. Wow!

Our designer, Terri Fischer, is the best! We get so many compliments about our home, mostly because Terri put together a great mix of cost-effective but beautiful colors and materials to satisfy our upgrade design selections.

Ingrid Schiano is very knowledgeable, personable and I loved working with her. This is my 1st home & she made it easier for me to make decisions due to her suggestions regarding all the choices and prices.

Diana was awesome. We told her upfront what we wanted, budget constraints, etc. and she put no pressure on us to upgrade.  

Jennie Ricket is a gem. As I said, I have had many design center experiences and I can confidently say that this one was the best! She was informed, efficient, and endlessly patient. She followed-through on all my requests and immediately returned my phone calls. When we ran into minor issues with construction, she quickly began to problem solve and kept me informed every step of the way.

Leslie and Rosalie were both terrific. When they didn’t know the answers to my questions regarding various options or alternatives they ALWAYS returned an email update once they found out my answers.

Barbara and Lissa and Leslie are all awesome. We worked the most with Barbara and couldn’t ask for anyone better. She’s never pushy, always listened to our need and incorporated her advice.

The Bad

No one really gave us a good explanation of why your prices were so much higher than I could get at a local vendor after move-in. I am a sales manager, and if you guys would have sold benefits as much as you pushed us to buy your high priced items, we might have purchased more options.

Why did I have to find out about the bay-window option by going to a neighbor’s party? No one ever informed us about this option, and I would have bought it in a heartbeat.

The person was always in a rush and it seemed like we were under time constraint. Also we had to wait so long for responses and paperwork we sent to them come closing time they had to ask for again because they did not know where they put it.

We feel the designer had very limited available time for our appointments. We understand there are many customers and yet we felt we had to stretch beyond to work out upgrades and to meet tight cut-off dates at the same time. Options availability made it almost impossible to complete in a single appointment for each option package.

I would suggest that your designer and construction foreman be required to live in one of your homes for at least six months. This would improve the quality of the residence.  

The Ugly

Nancy (xxxxx) seemed to completely ignore or feign ignorance of our stated budget. I would have preferred that she view this consultation as a ‘partnership’ rather than an opportunity to gouge another trapped customer. If you would have looked out for my family, we would have been happy to send you our friends!

Many upgrades were obnoxiously priced and the only reason we selected and paid for them through the builder was to protect our warranty. In such bad economic times, we were unsatisfied with the high mark-up on marginal quality and limited options. I do not like it when a company takes advantage of me.

Another buyer was given the option I was asking for and couldn’t get, which shows inconsistency in the process.

We were looking forward to taking our time to making a selection of upgrades. We initially wanted to include blinds in our upgrade package, but when we went to our appointment, the person that we expected to be there (specifically, the blinds person) was not there. And the person that was there, could not answer our questions about the blinds that we wanted. So, we were forced to choose another option. We were also told that we only had “that day” to pick our upgrade options.

You asked for my suggestions. Here is one: Deliver what you promise and improve your customer relations. We spend a lot of money on these homes – treat us like customers, not as trash. Some of us may consider buying from you again in several years!

The design selection part of this was the worst part of our purchase. Your sales and construction people were wonderful, but the options consultant ruined it. She was clearly only focused on selling her products. It totally gave me a bad taste for xxxxxx Homes. How could you include this firm as part of your process? I am sure others are complaining as well.

Your model homes are tools for more than just selling homes. If you don’t have a design studio, your models ARE your design studio showroom. If you DO have a design studio, your models are an extension of your showroom floor.

Models (preferably professionally-merchandised models) SHOULD, first and foremost, sell homes. That means they should highlight the architectural strong points of the floorplan, appeal to the target market’s sense of lifestyle and design style, assist buyers in understanding the plan’s possibilities, and help buyers come to the conclusion that “this home is the right solution for me/my family.”

Nothing happens, with personalization or any other aspect of homebulding, until there is a SALE. But most models I see in my travels all over the country and Canada, don’t powerfully communicate the builder’s promise to support their buyer’s needs to personalize their home, to convince buyers that they WILL be able to get a home that’s “just right for them”.

I was a Vice President for a major interior merchandising firm for many years before I opened Success Strategies, and I supervised literally hundreds and hundreds of model home specification meetings and installations around the country. I know that a talented, smart merchandiser plays a critical role on your marketing team and in the ability of your model homes to convert prospective buyers into real buyers. But are YOU, the Builder or Marketing VP, providing enough strategic direction to your merchandiser regarding the depth, breadth, and specifics for the products you want to showcase in each of your model homes?

Here’s just one example: if your model home has a powder room, hall bath and master bath, are you showcasing a different faucet, sink, cabinet style and finish, counter material and color, counter edge profile, vanity light fixture, mirror, flooring, toilet, and plumbing fixtures in each of those three bathrooms? Believe me, I understand and support, that the style of the model, and other factors should influence the interior specifications, but don’t take the easy way out.

• For example, if your merchandiser wants an espresso finish on the cabinets in all bathrooms, then show different cabinet styles in the three bathrooms, but all in espresso finishes.
• If your merchandiser wants to use brushed nickel faucets and vanity light fixtures throughout the model, then perhaps the master bath and powder rooms can show higher level faucets while the hall bath can show the included faucet in that finish (again, provided the style works with the rest of the home).
• Or perhaps the finish doesn’t need to be the same in all bathrooms at all…maybe each bathroom can have it’s own unique personality and still support the style and intent of the model overall.

When I picture your top-notch New Home Specialist demonstrating the model home, I picture him or her saying things like “Mr. and Mrs. Lopez, our model homes feature just some of the many high-performing products available in our state-of-the-art design studio. You can choose from our quality Included Features or from the numerous Available Personal Choices reflecting a variety of styles, finishes, and investment amounts. Here at Builder X Homes, we’re excited to help you get more of the home you really want.” But that powerful speech doesn’t resonate very much if the model doesn’t appear to show much choice.

Do you encourage your homebuyers to go back through the model(s) after they have purchased a home, as part of their preparation for their personalization experience? If not, then this conversation might be occurring in your design studio: As Mrs. Smith tries to make a final decision on a floor tile, your Design Consultant says: “Mrs. Smith, that tile you’re considering was actually showcased in the hall bath of the model at the neighborhood where you bought.” And Mrs. Smith replies “Oh, we didn’t like that floorplan, so we never went back into the model after we saw it the first time.” OUCH. Big missed opportunity for you, for Mrs. Smith, and for that trendy floor tile. Make sure your homebuyers are visiting all applicable model homes (with proper written notification regarding how features and options may vary between neighborhoods, etc.) prior to their final design studio appointment.

Do you give your buyers a detailed list of every single product showcased in each of your model homes so that you avoid your design consultant having to say “don’t you remember that tile/counter/trim package/shower/fireplace mantle/surround sound/dining room lighting fixture/stone/ceiling detail/cooktop/fill-in-the-product-name was shown in the model home?”

Remember, when that product is seen “in situ”, ie in the environment in which it is intended to be seen and used in the real world, it is so much more powerful than seeing a material sample. This is why design studio vignettes and simulated lifestyle environments are so compelling and successful.

Does that list of model home products use powerful and compelling language and nomenclature to identify each product and whether that product is “included” or “available”?

Do you have a defined procedure to ensure that your new home sales team walks through your model homes every week, noting any items which need to be fixed, adjusted or touched up? I believe that every potential homebuyer deserves to see your model homes in the pristine condition that you rigorously demanded for your Grand Opening Day. That’s why, years ago, we created our “Every Day is Grand Opening Day” checklist, part of our Opt4Excellence process improvement program. To get your free copy, go to http://opt4success.net/free-resources/seminar-downloads/ and enter the code “Grand Opening” and you’ll instantly receive a free copy of this valuable guide. Remember that the 245th prospective buyer and the 857th prospective buyer are just as important as the first one.

And one more question:
Is every product showcased in your model homes still available and still desirable? If your models feature discontinued or outdated products, you are wasting valuable retail space and doing a disservice to 1)your homebuyers and 2)your ability to sell homes and 3)to sell options. I realize budgets are tight these days, but pay more attention to your model homes and partner with your suppliers to make sure your model homes tell your buyers that you are a leading builder, on top of performance and design trends, who is committed to helping them get more of the home they really want.

If you answered anything other than “yes!” to the above questions, then it’s time to take a new, deeper, and more strategic look at your model homes. You may see more model home traffic this year than in the past few years. Make sure your models, your sales team, and your design studio are ready to maximize that opportunity.

Trust me on this: the devil is in the details. Really. The “behind-the-scenes” details. Hundreds of them which have to do with site lines controlling the experience, allocation of floor space which promotes strong ROI, the right balance between privacy and visual stimulation, proper space planning which supports a variety of different visitor groups and their often contrasting needs, a granular-level intensity on product specifications and showcasing, plus a strategy-based approach to creating realistic simulated environments (vignettes) throughout the studio. Just to name a few of the not-really-so-magical details.

Not to mention interactive and ergonomically correct product displays which prompt mental ownership, increase the perceived value of the products, influence which products the shopper’s eyes go to, aid in product comprehension and facilitate decision making.

I’ve had builders call me to figure out why their investment of a few hundred thousand dollars is not paying off the way they had hoped.  They tell me they visited another studio they liked, or saw some photos, and think they did a good job of replicating what they saw, but can’t figure out why their designs studio “just isn’t making as much money as it should”.

Here’s an analogy: let’s say I wanted to open a restaurant.  Would it be a smart business decision to visit a few local restaurants or surf the web looking for some photos of hot restaurants, and then ask my team, or my local architect, to “do something like that”.  Maybe I’m a great chef, or intelligent business person but don’t have any indepth understanding of how successful restaurants work, so I hire someone who worked at one local restaurant that seemed to do ok.  But chances are good that when building my new restaurant, I’d miss the strategy behind structuring the seating in the facility to maximize revenue or to create a superb ambiance that ultimately creates the “buzz” that makes my restaurant successful; I’d miss the all-important financial and trend analysis that determined how menu items are selected and created, described on the menu, and presented to the customer (all of which are required to maximize revenue) ; I’d miss the carefully planned understanding of the meticulously-crafted dining experience and how the design of the restaurant itself supports that world-class experience; and I’d surely miss how the design of the kitchen enabled an efficient, well-run “back-office” which allowed the public dining room to function so superbly.  I probably wouldn’t even be aware of the training the restaurant staff received when the restaurant opened which enabled them to perform on a level which maximized the facility’s carefully-crafted potential.

I’d look across the street at the popular “in” dining spot, and think:  “What are they doing over there that makes that place so successful? I tried to make mine look like that…why aren’t we making money? What’s so magical about their place?”

The magic is not what you see. It’s what’s unseen that makes square footage transcend transactional, blast past “pretty” and land solidly onPROFITCENTER. And like magic in general, it just looks effortless…it’s really the carefully-crafted illusion that you see. The reality is that it took years of topic research, hard practice, and unrelenting devotion to create that magic success, whether it’s a headlining magician making a beautiful woman miraculously disappear, a restaurant that somehow has the “it’ factor and turns its owner into an “overnight” success, or a design studio that drives new home sales, maximizes per-home revenue, and creates highly satisfied customers. So…do you believe in magic?

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