Working with Realtors: Four Reasons Why Most Builder/Realtor Relationships Don’t Work (and How to Fix Them)

May 5th, 2008

The problems and frustrations in most builder/realtor relationships can be traced back to a few basic reasons. Here are the top four and how to resolve them.

Reason # 1 - Unrealistic expectations
Each party brings with them their own set of expectations. These expectations will remain hidden until they are revealed during the relationship, then it can be a big problem to overcome. One side is going to accuse the other of being unreasonable, or having unrealistic expectations.

Solution:
Create a written list of what you expect your realtor to do for you. What seems obvious to you may not be obvious to your realtor. Share this list with all the realtors you are considering.

Once you have decided on a realtor have them go through the process of defining their expectations of you. I promise you that this will be a new exercise for them.

With both parties having fully disclosed their expectations of the other it’s just a matter of agreeing to those expectations. When frustrations come up in the relationship, which they always will, all either party has to do is to remind the other what they had agreed to in the beginning.

Reason # 2 - Lack of Training
A new home realtor should have a good working knowledge of how a house is constructed. They should know how to handle the most common buyer objections. They should know about financing and the loan process. They should know the area where they are selling, the schools, shopping, restaurants, entertainment, and employment. They should be very familiar with the neighborhood restrictive covenants and have a copy in their briefcase to answer any questions that may come up during the showing. They should have a grasp of current economic conditions and be able to answer objections that may be based on the economy. Most importantly they should know the builder they are representing and they should know his or her product.

Solution:
During the interview process ask some probing questions. Find out if they know the things you believe they should know. If not, create a simple training program. All you need are a few good books and the willingness to follow-up and make sure that they have learned the things they agreed to. Train them on how you do business and how you build a house. Take them on a two to three hour orientation of one of your completed homes and go over every detail of the house, including attic and crawl space. Later on send in some undercover testers to ask questions and see if they can answer correctly. They are representing your product. Make sure they know what they are talking about and have been trained how to sell it.

Reason # 3 - Lack of Communication
I have gone weeks without hearing from my realtor. When I finally call them they tell me that they had nothing new to report so they didn’t see any reason to bother me. If there is nothing new to report then we have a problem that we need to be discussing and figuring out a solution for.
By the same token, I have had things going on in my business that affected my realtor, but I neglected to inform them. It simply slipped my mind.

Solution:
Schedule a weekly meeting and make that meeting a priority. Each party should come to the meeting with their own pre-written agenda. This ensures that all important topics are covered and communication does not break down in either direction.

Reason # 4 - The Realtor is Not Involved in the Decisions
If you’ve worked with realtors then you’ve heard the many reasons given for a house not selling. Too much color, not enough color, wrong kind of carpet, master bed room too small, bad lot, poor kitchen lay out, on and on. It’s never the marketing.

Solution:
Get the realtor involved in all the decisions. Let them help pick the floor plans, the colors, the carpet, the counters, the lights, etc. You may be thinking that your decorator can do a better job of that than your realtor but if you have an experienced, successful realtor who has been around for a while they probably have a better handle on what customers are looking for than your decorator does. At the very least, have your realtor approve the selections.
Not only does this remove most all of the excuses but what you will find (if you have a good realtor) is that their opinions were actually right on the money. Most likely you will find your sales volume increasing and days on the market decreasing.

About the Featured Author:
Tim Davis is the founder of The Builder’s Coach, a national coaching and consulting firm designed to assist small to mid sized builders with back-office management and marketing solutions. Tim is a published author, a speaker at the national level of the NAHB, has been a successful home builder for the past twenty years, and is also a licensed realtor. Visit The Builder’s Coach for more information and some free, but valuable downloads.

Master the Customer Touch-Point with Constellation HomePlate

April 23rd, 2008

Customer touch-points can be mastered with Constellation HomePlate.  A touch-point is defined as all communication, physical and virtual interactions that home owners experience during the relationship life-cycle with their home builder.  Constellation HomePlate has become the key element for improving

  • Customer referrals
  • Customer communication
  • Customer satisfaction
  • Customer experience
  • Customer loyalty
  • Brand perception
  • Sales and profitability
  • Market share

Every home builder understands the value of having a truly satisfied customer talk to others about their great home buying experience.  HomePlate helps you generate homebuyer referrals.

Want to Learn More?
For more information, or to schedule a free online demonstration of this solution, contact Constellation Sales at (888) 723-2222 or sales@constellationhb.com.

About Constellation HomeBuilder Systems
As the largest home building software company in the industry, Constellation has helped more than 1,400 home building companies manage their information technology costs with integrated software solutions to run their business from dirt to warranty. From planning to homeowner services, we have land development software, new home sales and marketing software, production, purchasing, scheduling, accounting, warranty and homebuilding vendor portal solutions designed exclusively for the home building industry.

Media Inquiries
Cathy Kotsopoulos
ckotsopoulos@constellationhb.com
(888) 723-2222

Gain Business Insight and Streamline Communication with Constellation FOCUS

April 21st, 2008

FOCUS Business Intelligence
The FOCUS Business Intelligence solution has quickly become one of the most popular offerings at Constellation HomeBuilder Systems, with its nearly 1000 users.  Home builders utilize FOCUS Business Intelligence to analyze the data that resides in NEWSTAR Enterprise and NEWSTAR Sales to make informed decisions.  This insight enables homebuilders to

  • Increase revenue
  • Maximize profitability
  • Enhance productivity
  • Build strong customer relationships

FOCUS Business Intelligence offers unparalleled features that supply home builders with significant advantages within their competitive environment, and includes

  • Automated report delivery
  • Pre-configured reports
  • Exception based reporting

FOCUS Communicator
Constellation’s latest FOCUS product line extension, the FOCUS Communicator solution provides home builders the capability to automatically distribute timely and personalized reports, to any internal and external stakeholders, and immediately gain insight into the construction scheduling area of their business.

FOCUS Communicator can automatically notify suppliers of schedule changes, enabling home builders to effectively manage their suppliers with pre-defined reports, and with minimal setup and training.  The solution immediately allows home builders to

  • Eliminate supplier dry-runs
  • Reduce resource requirements
  • Prevent communication errors
  • Increase superintendent productivity
  • Enhance supplier relationships

Want to Learn More?
For more information, or to schedule a free online demonstration of this solution, contact Constellation Sales at (888) 723-2222 or sales@constellationhb.com.

About Constellation HomeBuilder Systems
As the largest home building software company in the industry, Constellation has helped more than 1,400 home building companies manage their information technology costs with integrated software solutions to run their business from dirt to warranty. From planning to homeowner services, we have land development software, new home sales and marketing software, production, purchasing, scheduling, accounting, warranty and homebuilding vendor portal solutions designed exclusively for the home building industry.

Media Inquiries
Cathy Kotsopoulos
ckotsopoulos@constellationhb.com
(888) 723-2222

What’s in a Name?

March 28th, 2008

In a world of political correctness who would guess that something as seemingly innocent as calling warranty “customer care” could have negative repercussions? Certainly not companies striving to please customers. But builders should consider at least three points before naming their warranty department the customer care department.

Big Picture Implications
The old adage “Customer service is an attitude, not a department” applies. Having a department named “customer care” (or for that matter, “customer service”) implies to the rest of a company’s employees that customer service is the responsibility of the Customer Care staff.

Service responsibilities and skills should be part of every job description in the organization. Precise performance standards for service should be integrated throughout each step of the experience, should express the integrity of the company, and should impress customers with its energy and attention to details. While these goals are certainly appropriate targets for the warranty staff, sales, mortgage, selections, construction, and closing personnel should share the same objectives.

Homeowner Expectations
Customer care implies great flexibility - a nurturing, generous, almost limitless package of services. This subjectivity is built into the title customer care. Homeowners are likely to expect service based on their personal standards and wishes.

What actually follows in most cases is warranty service based on the company’s limited warranty guidelines and practices. Many points are non-negotiable and measurable standards are often applied. This objective approach contrasts sharply with the implications of the friendly name. A soft name does not guarantee that homeowners will hold a high opinion of warranty service any more than a bouquet of flowers will convince a buyer that his home is complete when it is not.

“New Home Warranty Department” on the other hand implies a black and white set of repairs are available for a specified amount of time. Still, nothing in this name prohibits a builder from considering individual circumstances and making common sense exceptions when appropriate. Written warranty guidelines are a starting point - subject always to sound judgment.

More is gained if the builder retains control from the beginning instead of attempting to take control back from homeowners who expected “customer care” - not just warranty service. When a warranty office begins with black and white guidelines then makes appropriate exceptions, it can be a hero to many homeowners. Conversely, starting with an undefined “customer care” image often leads to hostile opinions from homeowners when warranty requests are denied.

Survey Savvy
Many satisfaction surveys include questions about customer care - intending to gather feedback about after move in services. Builders logically interpret responses to these questions as an evaluation of the warranty person or department.

Meanwhile, customers see a company’s service as a fluid component, coming from all personnel and all directions, flowing in and around the transaction from start to finish. Unless the questionnaire clearly identifies warranty service, the customers’ ratings may be a reflection of service from other departments: Phone calls not returned by sales? Pricing information slow to come from design? Lack of empathy from the field staff? Trade contractors eating lunch in their under-construction home?

Frustrated warranty personnel often lament low ratings from survey respondents who have never contacted the warranty office. Imagine the effect of this if those same warranty personnel work under an incentive program and this confusion is costing them bonus money.

Referring to warranty as “warranty” both on the organizational chart and in satisfaction questionnaires reduces the chances of such confusion and misinterpretation. Survey questions should ask customers to rate the service of each company function from sales through warranty. Feedback then provides more accurate indicators of where improvement is needed.

A rose is a rose is a rose… but “customer care” and “warranty service” are not interchangeable names.

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About Carol Smith
Carol Smith offers customer service assessment, consulting, and training programs for home builders. For more information, visit www.cjsmithhomeaddress.com.

Constellation Software Inc. Acquires the Assets of the Finance Edge business from Finance Edge LLC.

March 17th, 2008

Toronto, ON - Constellation Software Inc. (“Constellation”) (TSX: CSU) announced today that it has completed, through its wholly-owned subsidiary Constellation Financing Systems Corp., the acquisition of the assets of the Finance Edge business from Finance Edge LLC.

“The acquisition of Finance Edge provides Constellation the opportunity to expand our offerings in the asset finance vertical market and apply our proven operational models and strategies” said Dexter Salna, President of Constellation Homebuilders Division “While not a large acquisition by Constellation standards, we are excited that we have been able to build upon a new vertical market that we recently entered.”

About Constellation Financing Systems
Constellation Financing Systems is the premier software and service provider of lease and loan management systems to leading financial institutions, leasing companies, and equipment manufacturers.

About Constellation HomeBuilder Systems
As the largest homebuilding software company in the industry, Constellation has helped more than 1,400 homebuilding companies manage their information technology costs with integrated software solutions to run their business from dirt to warranty.  From planning to homeowner services, we have land development software, new home sales and marketing software, production, purchasing, scheduling, accounting, warranty and vendor portal solutions designed exclusively for the homebuilding industry.

About Constellation Software Inc
Constellation’s common shares are listed on the Toronto Stock Exchange under the symbol “CSU”. Constellation Software is an international provider of market leading software and services to a number of industries across both the public and private sectors. The Company acquires, manages and builds vertical market software businesses that provide mission-critical software solutions to address the specific needs of its customers in those industries.

Forward Looking Statements
Certain statements herein may be “forward looking” statements that involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of Constellation or the industry to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. These statements reflect current assumptions and expectations regarding future events and operating performance and speak only as of the date hereof. Forward looking statements involve significant risks and uncertainties, should not be read as guarantees of future performance or results, and will not necessarily be accurate indications of whether or not such results will be achieved. A number of factors could cause actual results to vary significantly from the results discussed in the forward looking statements. These forward looking statements are made as of the date hereof and Constellation assumes no obligation to update any forward looking statements to reflect new events or circumstances.

For further information, contact:
John Billowits
Chief Financial Officer
Constellation Software
(416) 861-2279
info@csisoftware.com
www.csisoftware.com

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Differentiate Yourself - A Homebuilder’s Perspective

February 29th, 2008

Chuck Miller

In one of my early Institute of Residential Marketing courses, the instructor said something that really hit home with me as a builder. He pointed out that marketing is about differentiating yourself in the marketplace and stated that you can differentiate yourself by product or you can differentiate yourself by process and procedure. He then pointed out that if you differentiate yourself by product and you have a great product – great floor plans, unique trim details, energy-efficient building practices – eventually everyone is going to copy what you’re doing. Thus, you constantly struggle to find new ways to differentiate yourself. But then he emphasized that if you differentiate yourself by process and procedure, others are far less likely to copy what you do.

Previously featured authors have discussed the value of best management practices like using purchase orders and work orders and eliminating billing errors to save money and improve your bottom line. But there are a number of best management practices and implementing any or all of them will save you money and improve your bottom line. More importantly, implementing best management practices will increase your sales. I believe that everything we do is marketing and the best, most cost-effective marketing is referral marketing. I emphasize that our customers include not only the people who hire us to build their homes but also our trade contractors, vendors, and service providers. Particularly in today’s market, buyers are hesitant. They have read and heard all the news stories about builders facing financial problems or filing bankruptcy. But people are still buying new homes. If you follow best management practices in your business, it can go along way toward reassuring them that you are not like all the others.

Differentiate yourself by implementing best management practices like creating critical path schedules for all of your jobs and updating those schedules at least weekly; using work orders and purchase orders that not only set the price but that are also tied to your job schedule; having a system in place to notify your trade contractors and suppliers when they are expected to be on your job and when they are expected to complete their work; ensuring that your jobs are ready for them when they show up as scheduled; managing your accounts receivable and accounts payable so that trade contractors, vendors, and service providers are paid in a timely manner; and providing your lenders with accurate financial statements on a monthly basis. Not only will you receive preferential service and pricing from you trade contractor and vendor partners, but I guarantee that if you do all of these things, the word will spread. Your trade contractors, vendors, service providers, and lenders will become some of your best sales people. You will become the builder of choice in your market.

Integrated software programs make it relatively easy to implement most of these best management practices. But like any good tool, you have to take it out of your tool box and learn how to use it. I encourage you to do so.

About the Featured Author:
Chuck Miller is a Graduate Master Builder (GMB), a Member of the Institute of Residential Marketing (MIRM), a Certified New Home Marketing Professional (CMP), a Master New Home Sales Professional (MCSP), and a Certified New Home Sales Professional (CSP). In addition to his role as President and CEO of Chuck Miller Construction Inc. Chuck is an instructor for the National Association of Home Builders University of Housing Graduate Builder, Graduate Remodeler, and Institute of Residential Marketing programs. Chuck has been a Buildsoft user since 1992. You can learn more about Chuck and his company at www.chuckmillerconstruction.com.

About Constellation HomeBuilder Systems
As the largest homebuilding software company in the industry, Constellation has helped more than 1,400 homebuilding companies manage their information technology costs with integrated software solutions to run their business from dirt to warranty. From planning to homeowner services, we have land development software, new home sales and marketing software, production, purchasing, scheduling, accounting, warranty and homebuilding vendor portal solutions designed exclusively for the homebuilding industry.

Media Inquiries
Cathy Kotsopoulos
ckotsopoulos@constellationhb.com
(888) 723-2222

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Constellation HomeBuilder Systems Wins Progress Software Corporation’s Visionary Award

February 11th, 2008

Constellation HomeBuilder Systems, the largest provider of homebuilding software in the industry, wins the Visionary Award at Progress Software Corporation’s 2008 application partner conference in Las Vegas.

The Progress Visionary Award is presented to a company that delivers successful products and services utilizing Progress Software’s application platform and foundation technology. As an integrated solution for production homebuilders, Constellation’s NEWSTAR Enterprise system and add-on products demonstrate the originality and technical vision necessary to be selected for this award. Supporting homebuilders during all phases of the building process, Constellation continues to invest in new technology to help homebuilders become more efficient with innovative software solutions. From project planning to homeowner referral, Constellation can help homebuilders improve their accounting, estimating, purchasing, reporting, scheduling, warranty, and service processes. With a single database design and an easy to use application, every homebuilder can access the information they need with the comfort of knowing that their data is up-to-date and consistent.

“Progress Software Corporation is committed to the success of our partners and their customers. Each year Progress honors Application Partners that provide their customers with innovative products and solutions,” said Bob Palumbo, vice president, Progress Software Corporation’s Worldwide Partner Program. “The recipients of this year’s awards have developed products and solutions that help solve complex business issues for their customers worldwide. Their dedication to the development of problem solving business applications is part of what makes the Progress Application Partner Community so strong.”

“We are pleased to receive this recognition from Progress Software,” says Dexter Salna, President of Constellation HomeBuilder Systems. “The innovations we have brought to market, would not be possible without dedicated customers and their participation in product design. With the largest number of employees dedicated to developing and supporting homebuilding software products, we are able to work closely with customers and make these innovations a reality.”

About Progress Software Corporation
Progress Software Corporation (NASDAQ: PRGS) provides application infrastructure software for the development, deployment, integration and management of business applications. Our goal is to maximize the benefits of information technology while minimizing its complexity and total cost of ownership. Today the company has over 1,600 employees in over 90 countries. Progress is headquartered in Massachusetts, USA, and is a worldwide leader in application infrastructure software.

About Constellation HomeBuilder Systems
As the largest homebuilding software company in the industry, Constellation has helped more than 1,400 homebuilding companies manage their information technology costs with integrated software solutions to run their business from dirt to warranty. From planning to homeowner services, we have land development software, new home sales and marketing software, production, purchasing, scheduling, accounting, warranty and homebuilding vendor portal solutions designed exclusively for the homebuilding industry.

Progress Software is a registered trademark of Progress Software Corporation in the U.S. and other countries. Any other trademarks or service marks contained herein are the property of their respective owners.

Media Inquiries
Cathy Kotsopoulos
ckotsopoulos@constellationhb.com
(888) 723-2222

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Constellation’s OnLocation-Schedule Wins Another Industry Award

February 4th, 2008

Constellation HomeBuilder Systems, the largest provider of homebuilding software in the industry, is pleased to announce that Constellation OnLocation-Schedule has won the Constructech Top Products 2008 award.

Constructech selected Constellation OnLocation-Schedule for its ease of use and extremely powerful field scheduling functionality. Designed for both superintendents and construction managers, OnLocation-Schedule ensures that everyone is up-to-date and that building progress is closely monitored.

“We congratulate Constellation HomeBuilder Systems for winning a Constructech Top Products award,” said Mike Carrozzo, editor, Constructech magazine. “Customers using this product have had great success managing construction schedules and payment processes from the field.” This is yet another benefit that Constellation provides to its customers. With an unsurpassed dedication to the homebuilding industry and continued investment in new technologies, Constellation is positioned to lead the industry for many years to come.

As part of the OnLocation suite of mobile device applications, OnLocation-Schedule is one piece of the big picture. Coupled with NEWSTAR Enterprise and Constellation Focus, OnLocation is the basis for a powerful system of schedule management, supplier and trade performance measurement, and timely report generation and distribution. Many builders have used this system to achieve better supplier and trade relationships, while increasing customer satisfaction with fewer mistakes and improved cycle times. Using OnLocation-Schedule’s “Complete with Exceptions” feature has allowed builders to withhold payments for work that was done incorrectly, while allowing the building schedule to proceed in many cases. In addition, the use of Constellation Focus allows suppliers to be given a statement that identifies all the tasks for which payment is being held, reducing the number of phone calls and providing a clear incentive for completing the work as soon as possible.

“We are very excited about OnLocation-Schedule being selected for another homebuilding industry award,” exclaims Dexter Salna, President of Constellation HomeBuilder Systems. “Constellation listens to its customers and develops the solutions that will improve their businesses. We have a strong group of early adopter customers that deserve a lot of credit for helping us develop award winning applications. These relationships improve product quality and ultimately improve the solutions that we can offer to other homebuilders.”

About Constructech
A division of Specialty Publishing Co., Constructech advises 40,000 unique builders and contractors in all trades within the homebuilding market on the technology, services, and automated home technology that help improve business and increase margins. With a specialized focused in the homebuilding space, Constructech uncovers the solutions that are shaping the way homes are built.

About Constellation HomeBuilder Systems
As the largest homebuilding software company in the industry, Constellation has helped more than 1,400 homebuilding companies manage their information technology costs with integrated software solutions to run their business from dirt to warranty. From planning to homeowner services, we have land development software, new home sales and marketing software, production, purchasing, scheduling, accounting, warranty and homebuilding vendor portal solutions designed exclusively for the homebuilding industry.

Media Contact
Cathy Kotsopoulos
Constellation HomeBuilder Systems
Phone: (888) 723-2222
E-mail: ckotsopoulos@constellationhb.com

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Taylor Morrison Selects Constellation HomeBuilder Systems

January 31st, 2008

Constellation HomeBuilder Systems, the largest software provider for the homebuilding industry, is pleased to announce Taylor Morrison has selected Constellation’s NEWSTAR Enterprise homebuilding system to manage the production of all Taylor Morrison single-family, multi-family, and condominium projects.

Taylor Morrison selected Constellation for its robust and highly scalable solution for its homebuilding operations, in an effort to focus on what Taylor Morrison does best; develop communities and build homes.

Bob Witte from Taylor Morrison remarked, “Rather than continuing to enhance the homebuilding solution our Morrison business was using for production needs; we felt our competency to build homes, together with Constellation’s competency to build software for homebuilders, formed a mutually beneficial relationship with both parties doing what they do best.”

Constellation will provide the NEWSTAR Enterprise solution for production homebuilding as well as NEWSTAR Sales and Constellation BuildPro. NEWSTAR Sales will allow Taylor Morrison to focus on selling more homes and options in a challenging market, with fewer errors and higher margins. With Constellation BuildPro, powered by Hyphen Solutions, Taylor Morrison gets a proven field scheduling solution, used by many of North America’s largest homebuilders. “BuildPro, SupplyPro and NEWSTAR Enterprise combine to provide compelling cost savings for any high production homebuilder”, explains Bob Witte at Taylor Morrison.

“Constellation is excited to be a long-term partner with Taylor Morrison,” exclaims Dexter Salna, President of Constellation HomeBuilder Systems. “When we entered the homebuilding industry, our goals were to become the leading solutions provider to homebuilders and to provide solutions that make them more profitable. Since our inception, we have made long term investments in development, service, and support to provide homebuilders with a completely integrated IT solution for all their needs from dirt to warranty. Most homebuilders select Constellation for our dedication to the industry, our high quality products, and our outstanding customer support.”

About Taylor Morrison
Taylor Morrison is one of the top homebuilders in North America, specializing in building first-time, mid-market and mid-to-upscale housing in both master planned and urban infill neighborhoods in more than 280 communities in Arizona, California, Colorado, Florida, Nevada and Texas. The company also operates under the Monarch brand in Ontario, Canada, where it builds single-family homes and high-rise condominiums. Taylor Morrison is a wholly owned subsidiary of Taylor Wimpey plc (LON: TW), a homebuilding company with 125 years of experience and operations in the United Kingdom, North America, Spain and Gibraltar.

About Constellation HomeBuilder Systems
Constellation has helped more than 1,400 homebuilding companies contain and manage their information technology costs with integrated software solutions to run their business from dirt to warranty. From planning to homeowner services, we have land development software, sales and marketing software, production, purchasing, scheduling, accounting, warranty and vendor portal solutions designed exclusively for the homebuilding industry.

Media Contact
Cathy Kotsopoulos
Constellation HomeBuilder Systems
Phone: (888) 723-2222
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Make an Extra $1,000 per Home

January 17th, 2008

Craig Schweikart

In this article we will discuss the value of integrated purchasing and how it can improve the profitability on each and every home you build. Industry experts and the NAHB for years have touted the value of purchase order and work order management.

It is a simple process - - - estimate your costs and hold the trades accountable to their pricing. The idea is to send your suppliers and subcontractors written documentation in advance outlining the agreed upon pricing and the scope of work the sub is responsible for. These bids can either be solid estimates or lump sum prices. Later on when invoices are received, the invoices can readily be compared to the original purchase orders.

The value comes from having agreement across estimates, purchase orders, pay-points and job cost information. An integrated purchasing system does this automatically and all you need to do is manage the exceptions or variances. If these four components are not automatically integrated you have to manage all the detail manually. The result is you manage all of the “mundane detail” four times and exceptions need to be tracked in a fifth process.

There are several problems you can anticipate with a “stand-alone” purchasing system. Without an integrated system you are liable to run into the common problem of double billing of invoices. Another problem is that multiple manual processes are error prone and time consuming.

Most experts agree that an integrated purchase order system can generate cost savings of 10 to 20 dollars per cost code. I would bet most of you would agree by focusing attention on pre-pricing your labor and material based on estimates, then holding your trades to that price (after all they agreed to the price) — you could save at least $10 per cost code on average. You will save less on some and much more on others and remember this is not just a one time savings; you will be saving ten dollars for each cost code on each house!

If you are structured like most builders you typically have about 100 to 120 cost codes per house. So, do the math - - - a purchase order system is expected to generate between $1000 and $1200 per house in cost savings. If you build and close one house per month or 12 per year you can add at least $12,000 in profits just by implementing a purchase order system.

In today’s market what could you do with an additional $12,000? What if you could reach the cost savings of $20 per cost code?

In addition to the financial savings, a strong purchase order system will greatly reduce headaches. Everything your subcontractors are responsible for is well documented so there is little room for dispute later on. Similarly paying your bills becomes a more automated, faster process with far less error.

If you look for software solutions to help manage your business take care to select a product with a strong purchase order and work order system. Make sure it has a proven track record for generating results similar to those in our example and you won’t be disappointed.

About the featured Author
As a respected consultant and national speaker, Craig Schweikart has developed and presented numerous seminars to homebuilders. He has spent over twenty years advising homebuilders on system selection, process management, and profit improvement.

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