Wednesday, October 24, 2012

Stateson Homes Builder Twenty Meeting


Stateson Homes Builder Twenty Meeting

I had the good fortune to be invited to a Builder Twenty meeting last month in Bend, Oregon.  Builder Twenty groups consist of approximately 20 builders of similar sizes, matched to share ideas and best practices with one another.  This particular group was formed in 1996 and although some have come and gone, many of the original members are still participating, including my partners at Atlantic Builders.  The group’s mission is to share best practices, provide feedback to one another, and to host expert speakers and vendors in the industry.

First off, Bend, Oregon is a great small city.  With a population about the same as the New River Valley (Blacksburg MSA), the town appears to have doubled in size since 2000.   Spas, coffee shops, and upscale restaurants are alive with customers.  The Deschutes River, a beautiful clear water river abuts one side of town and the Cascade mountain range can be seen in the background providing beautiful scenery.  Located in the high desert, cold water streams abound but the soil is dry and the plant life is what one would expect in the desert.  If you ever get a chance to visit Bend, I would strongly recommend that you do so.

Second, I would like to thank our host, Hayden Homes for providing a great forum to learn and see their operation first hand.  The wine tasting dinner they arranged allowed us to try Oregon's finest Pinot Noirs and Cabernets.   

Many builders across the country went out of business between 2008 and 2011.  Although there were many battle scars among this group, each member in this group survived and is in good position to thrive going forward.  There were many lessons to be learned from this group of business leaders, strategies that one would like to follow and ones to avoid.  There was an overall sense of pride among the members because sales have picked up in their respective markets and they realize they have weathered the storm.  Low interest rates and low inventories are returning markets to normal across the country.

As I got to know the principals of these various builders two things stood out to me.  This group of strong business leaders had a strong commitment to customer service and they all understood the importance of training, developing, and maintaining a professional team of employees.

One reason that these companies survived is the strong value they placed on customer service.   Although each of these members had pressures coming from many directions such as bank loans being recalled on land positions, downsizing their staffs, and appraisals falling through, they never forgot about the customer. They recognized that doing the "right thing" for their customers, trade partners, and other stakeholders was the number one priority despite the other issues going on.    I attribute their ability to survive in large part to the high standards these individuals had cultivated in their organization.  They stand by their homes. Great Customer Service EQUALS More Sales and this group understood that equation.

The other common theme I saw from the meeting was an understanding that the organization is only as good as the team they had assembled.  It is essential to provide the resources and time to train and develop a team of employees to enhance the customer experience as well as the bottom line.  Developing a culture that attracts talented people and provides the training for them to grow and expand their skills is important in any industry.  The builders that had this culture before the downturn were much more likely to survive.  Those that have it today will continue to gain market share and become the leaders in the industry of the future. 

When and if you look to build a new home, make sure you builder understands the importance of these two points.  Choose a builder that has been tested in the industry and can manage the process.  It is one thing to know how a home goes together, but it is a different skill set to manage the multiple challenges during the process that protect you, the home buyer.  Choose a builder that places an emphasis on doing the right thing.  There are over 300,000 different parts in a new home and occasionally, even the best companies have things go wrong.  Make sure you are confident that your builder has the financial means and a track record of doing the right thing by their customers.  And finally, choose a builder that hires, trains, and develops a staff of high potential managers.  It is your investment in a new home that they will be managing and you should expect a qualified team to serve you along the way.

Stateson Homes understands these values.  Our team has been directly responsible for building over 2000 new homes.  We have assembled a team of top notch individuals to assist you before, during, and after the construction of your new home.  Visit us at www.StatesonHomes.com to learn more.


Todd Robertson

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