Homebuilders’ showroom strategy
Author: boored
Category: Real Estate
In a tough year for the housing industry, some homebuilders are trying to attract buyers by adding new services and options to their already elaborate showrooms.
Traditionally, buyers would come to a builder’s showroom after they were already in contract, choosing from thousands of options such as countertop finishes, plumbing fixtures and flooring materials. Now, builders are trying to get buyers into those showrooms even earlier.
In December, David Weekley Homes launched a similar program, and found as many as 70 people attended the biweekly sessions for prospective buyers.
Builders are also adding to their lineup of services, branching into water treatment, window coverings and furniture sales from their showrooms.
In a tough market, that diversity can be important. Buyers spend 10 to 15 percent of the base cost of their home on options, says Mr. Barrineau, making the showroom “a big part of our business.”
Before opening its home center in 2000, buyers of David Weekley Homes picked out their house’s finishes from a garage office in a development’s model home. Now the company directs all Dallas-Fort Worth area buyers to a 45,000-square-foot facility in Carrollton that also houses its mortgage and title companies, three idea homes and an extensive design center.
And the company is launching a home furnishings program so buyers can purchase window treatments, furniture and even bedding from the builder’s showroom. In a pilot program last year, between 40 and 50 percent of buyers opted for the service, said Joe Vastano, a division president in David Weekley Homes’ Dallas-Fort Worth office.
Others are trying to stay current on new trends. KB Home design studios are adding “My Earth” tags, labeling items as energy efficient, water wise, healthier or from sustainable sources.
Ryland Homes is adding nontraditional options, including water-treatment systems that haven’t typically been included in builder packages. It’s also branching into options for window treatments, such as blinds or plantation shutters, said Pat O’Flynn, vice president of sales and marketing for Ryland Homes in Texas.
But some builders think too many options can be overkill.
After opening home supercenters almost two years ago that combined neighborhood details with floor plans, elevations and plat maps, Centex Homes decided to change tactics. There was just too much information, said Kevin Jones, director of marketing for Centex’s DFW metro division. “It looked like a science fair,” he said.
Now, the company is trying to streamline. Its Fox & Jacobs division, for example, is launching coordinated decorating packages that combine flooring choices with cabinet finishes and paint colors.
Otherwise, Mr. Jones said, the options “can be overwhelming.”
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