Value. Whether you are in new home construction, remodeling, building supply
sales, real estate or any other facet of home construction, you have had a
discussion or two with a client about value. Why does everyone continually try
to tell the client what is of value to them? It is time to listen to the buyer
and let them tell you what value is. It is not just price. If it were, why would people pay thousands of dollars more to drive Truck A: a
leather-upholstered, 6-disc changer (or mp3 capable), mega-tire, decked out pick-up truck when Truck B: a stripped down version will get them
from the first job to the second in the same amount of time? There is a
perceived value that Truck A is better. Maybe the music quality is better;
perhaps it is more comfortable; possibly it includes a navigation system.
Whatever the reason, they are willing to pay more.
As national homebuilding consultant Al Trellis explains the concept, value
consists of five aspects: financial, emotional, physical, functional and
procedural. Obviously, the financial aspect covers the price, but also such
things as resale value and maintenance cost. Does spending an extra thousand on
the house mean that they will save hundreds a year on heating/cooling their new
home? Are they spending more or saving?
The emotional facet plays a huge part in making a purchase decision. A critical
reason for listening is tied to emotion. The clients want to know that you have
their best interest in mind. Listen and present what they are looking for, if
you have it.
The physical aspect of value depends largely upon the needs of the client. No
matter how closely you listen, you are not going to get a family of six into a
two-bedroom condo downtown. Are they more interested in a large area for their
kids to play out back or a cul-de-sac where they can ride bikes? Are your empty
nesters looking for single story in advance of their parents’ physical needs?
Functionality is another critical aspect to today’s clients. Most of the time, a price cut doesn’t make up for a poorly rated school, or an extra long commute to work.
The bottom line is, clients realize that the price of the home is within the
financial aspects; however, the other facets of value must be covered in the
decision making process. The idea is to truly understand your customers, learn
what is important to them, (needs vs. wants) and present your product in terms
that resonate with their own intrinsic values. It does no good to tell others
what you perceive as value. It only matters what the client considers of value,
and if they believe you are capable of delivering that value through your goods
or services.
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By Mark Vogel
Vogel Construction
