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Dare to Be Different

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Marketing & Sales

Dare to Be Different

A Round Table Discussion on how to differentiate


By Rob Fanjoy, Senior Editor April 29, 2001

 

The Round Table
Scott Christopher (center) got into the custom building business after he graduated from Western Michigan University in 1982 with a degree in construction management and supervision. As president of Grand Rapids, Mich.-based Scott Christopher, Inc., he now builds around three high-end homes per year, as well as a couple million-dollar renovation projects.

As President of Cliftwood Homes, Inc. of Paradise Valley, Ariz., Michael Mendelsohn (top left) once built luxury spec homes but now builds about three custom homes per year. He has also begun to capitalize on the "luxury re-build" trend popping up around Scottsdale, where smaller homes are being torn down but for one wall or part of the foundation and a new custom home is then built on the site.

Jim (bottom right) and Lois (top) Syth make up the husband and wife team behind Bridger Builders of Bozeman, Mont. Since starting in 1977, they have gone from pouring concrete to working with manufactured housing to presently building five to six high-end homes above the $500,000 range.

Hill Custom Homes builds 20 to 25 high-end homes per year in the area near its headquarters of Gig Harbor, Wash. President Jeff Hill (bottom left) says most of the homes are in the $120 to $160 per square-foot range, but some exceed $200.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Everyone wants to stand out, to leave a mark, to be known as the best at something. Athletes strive to set and break records, actors yearn to leave an indelible impression on their audience and writers want to impact their readers’ emotions in some lasting way.

Businessmen are no different. Be it brand recognition or a strong reputation of quality, simply making enough money to stay in business isn’t enough. And in the luxury housing world, there are plenty of opportunities for savvy businesspeople to set themselves apart. The builders of the four projects featured in this edition of the Tour have all decided upon certain strategies designed to differentiate themselves from their area competition, and in the minds of many of their clients, they have been quite successful.

Making a Mark With Millwork
What distinguishes Scott Christopher’s business may not be readily apparent to the naked eye, but he says it definitely shows up on his bottom line. The company runs its own custom millwork shop to produce their own cabinetry, brackets, doors, mantels and even furniture.

"We have more than $80,000 worth of woodworking equipment and two cabinetmakers with more than 65 years of combined experience," says Christopher. "Without significant overhead, we can produce any piece for less money than a builder would have to spend to outsource it."

This method of distinction came about for Christopher because he wanted to employ a full-time crew and contract out as little work as possible. While he still hires outside painting, drywall and concrete crews, his crew does anything in his homes that is made with wood. Over the years, Christopher has found the strengths and weaknesses of each crewmember and moves them around to take advantage of their talents.

"Keeping my crew happy and busy allows me to maintain a quality workforce with minimal training and seeking of new employees," says Christopher. "They’ve gotten to the point where they work extremely well together—like a championship team. That creates its own efficiencies and benefits."

The company usually has three houses in process, and keeps the same crew on each respective site from start to finish. Christopher says this keeps his crews focused. When a project has a crew’s full attention, change orders and additions are easier to handle and they can easily stay an extra week or so if needed.

"One of our current clients has already done six or seven homes with us, and he’s had the same foreman for all his jobs. They’re comfortable with each other and they know how to work together because they’ve been through it already," says Christopher. "We’ve gotten a few repeat customers and clients will rave to their friends about this aspect of our business."

Love’s Labor Found
Where Christopher demarcates his company by employing a full-time framing crew, Michael Mendelsohn has found a full-time crew through his quest to distinguish his company. Since taking over as president of what was once his father-in-law’s company six years ago, Mendelsohn has always had one method of distinction in mind—alternative building materials. Or more specifically, steel framing.

"I never wanted to be a ‘me-too’ builder," says Mendelsohn. "I’ve always wanted to specialize in something, stick with it and make it work. For me, that something is steel framing and green building."

After thoroughly researching the technology, speaking with numerous steel framing companies and visiting various job sites where the material was being used, Mendelsohn was ready to get a crew together. After speaking with a few steel-framing contractors, he decided the best thing for him to do would be to assemble a crew himself.

"I was not comfortable with what the contractors in the area were telling me. Everything sounded too good to be true, and it was. They were eventually exposed as less than reputable," says Mendelsohn. "So I hand-picked my crew from other companies and now I have a great bunch of 12 very talented people."

In addition to the obvious incentive of green building—environmental responsibility—Mendelsohn chose to specialize in steel framing because it also often allows for greater design creativity.

"You can do certain things with steel framing that are simply impossible with lumber, such as huge cantilevered overhangs and more expansive interiors," says Mendelsohn. "Plus, all our steel-framed walls are straight and true, which speeds up the drywall process and everything after."

Both Christopher and Mendelsohn agree that when employing your own full-time crew, the biggest challenge is keeping them busy. Mendelsohn also taps the somewhat hidden talents of his team.

"When I began, I wasn’t used to keeping my own crew working, so I played up their other talents. I’ve got guys who are adept at stucco, drywall and concrete. One of my guys is also a heavy equipment operator, so I can just rent the stuff and he works it, which saves me money," says Mendelsohn.

A Place of Distinction
It’s hard to compete with the outdoor majesty of Montana, so Jim and Lois Syth don’t even try. Instead, they have made it a part of their business. Knowing that those who move to the area and those who have chosen to stay there are doing so because of the rugged lifestyle and atmosphere of the region, Bridger Builders takes great care to incorporate that into their homes.

"We try to bring the outdoors in and allow plenty of sunshine and views and plan our furniture layout from the start to take full advantage of that," says Jim. "This doesn’t mean we always build a typical mountain lodge. We incorporate design elements from other areas of the country, such as Adirondack timber accents or Northern California Craftsman elements, that look like they belong here."

While any Montana builder can use the outdoors as a selling point for their homes, it is the careful execution of design details that Bridger Builders uses to earmark their business.

"The biggest transformation in our business came right after we built our own home in 1988," says Lois. "It was the first home where we were in control of all the specs, and it always gets a huge response when we show it to potential clients. You tend to attract the kind of business you can show."

It is just this reaction that has lead the Syths into building parade homes so they can showcase their own design expertise. In fact, the client who bought the home featured in this issue wanted something a bit larger than his last home—which was also Bridger Builders’ parade home.

"He bought it before it was done, and he was more than happy to agree that we were still in charge and he couldn’t make any design changes," says Jim.

Jim states that another advantage to building specs and showing their own private residence is that it sets a client’s mind at ease.

"The busy home buyers of today can feel good about handing the project over to us because they’ve seen what we’ve done for and by ourselves," says Jim.

Lois says the key in differentiating yourself through show homes is to stay true to genuine tastes. If you don’t follow trends then you won’t date your work. No one will be able to say in 15 years, "Oh, that house is so 1995."

"The most important aspect of a home is whether or not it makes the resident feel good," says Lois. "Many parade homes are built to impress and forget that a home should nurture, it should be a welcome refuge at the end of a long day."

Give the People What They Want
Like a lot of custom builders, Jeff Hill sees satisfying his clients as the number one way to distinguish his company. But simply trying to please customers isn’t enough to set your business apart if everyone else is doing the same thing.

"Customer service is the buzzword for just about every custom builder, but we attack it a little differently than most," says Hill. "We focus on the customer’s entire experience with us as much as anything else in the building process."

This means that Hill structures and defines the entire building process for each individual client. A job schedule is published for the client, with milestones marked off at every point where clients must make selections. This way, they know far in advance when they must choose colors, materials, appliances and fixtures.

"To facilitate the selections process, we set up four different meetings with interior design professionals and the clients at no extra cost," says Hill. "The customers are really set at ease when everything is spelled out in an orderly fashion."

On their own end, Hill’s administrative process has evolved over the years to not only make home building easier for the clients, but more efficient for themselves as well. Weekly job meetings are held for every home in process, where well-defined expectations are discussed and strategies and solutions are decided upon.

"We also have one inner-office person assigned to every job as a project coordinator," says Hill. "This way, when the client calls the office with a problem, question or change order, they can talk to someone who is completely familiar with their project."

This approach has worked well for Hill, although he states that it is sometimes hard to make a potential client realize just how valuable this service can be.

"They really appreciate it once they’re in the middle of the process. Then, when the home is finished, they realize just how invaluable our customer experience approach is," says Hill. "You can’t make up for a client’s hard feelings, even if you build a flawless home."

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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