Developments


What a refreshing thought, looking to the future. It is nice to finally see someone looking forward instead of back. How refreshing to look at new ways of thinking instead of taking bits of history and re-purposing them for current use.

It is nice to see a new series of articles being published by Builder Magazine, with the first one appropriately titled “Vision Quest”.  They begin to examine what is to come, not what has already been done. This is truly a breath of fresh air for our industry. We are a market that constantly just tweaks what has currently always worked and hopes that it will continue to keep working.

However, times are changing and they are going to change even more, so we must learn to embrace them. People are becoming more technologically savvy, they want environmentally friendly homes, they are constantly looking for what is new. Values and ideas are ever changing, they evolve and so should our industry. It is not just the trends with design and creating communities that are changing. The way we do business must change too. We cannot keep doing the things we have always done and expect things to be different. Marketing is one area that must always grow with the times, and if you are the one on the cutting edge, you will reap the benefits all the way to the bank.

Do not be afraid to look to the future in all aspects of your business. It is truly the ones that risk the most and actually venture out to the ledge, that really stand the best chance for success.

Last night I was sitting watching some mind numbing television and a commercial came on that really stuck in my head. It was a commercial for some inventors and said something like “100 years ago the patent attorney said.  Everything that can be invented has been already. Since then millions of new patents have been created.” Please forgive my recollection of the exact facts but the meaning is what stood out in my head.

Are there really no more original ideas? Do we just borrow bits and pieces of things to create new ones?

My answer would be, no and yes. I think that ideas are just a collaboration of thoughts that are taken apart and then creatively constructed back into something new. As designers we are constantly borrowing from others, from nature, pre-existing structures, emotions, colors, and on and on. However, I think there are always opportunities to create something new. Something that no one has done before. It just takes that little spark in the imagination and the wheel starts to move. As it begins to roll there is no stopping what can be created, especially when collaboration begins to take place.

When you are stuck on something or need a spark of inspiration to think of something new. Find someone who you can sit and bounce around your thoughts. You will be shocked at how a little brainstorming with someone, who knows much or nothing, can get you unstuck and cause the ideas to just flow. Ideas are what make life interesting. How boring would life be if we all just did the same thing and nothing new was created.

In an age when “original and unique” seem to be the buzz word of the day, creative ideas are the only thing that call you out from the masses. Good luck and keep always dreaming.

The mood still seems to be a bit somber amongst the vast International Builder Show attendees. People are still waiting to hear when is this all going to end. There were a few reports on are we heading into a recession and the economic outlook for the next year did not seem as bleek as expected. To read more about their predictions click here.

After attending may of the sales and marketing seminars, the overall tone was to dig in and weather out the storm. There was great focus on how sales people really needed to get back to the basics and start actually selling for the first time in a long time, the homes are not going to just sell themselves these days. Marketing also seems to be a higher priority as well this year. With more focus on branding and website presence. Thank goodness!!! Here is an article that speaks directly to what some builders are doing  “Builders Priority’s Change as Market Conditions Slip

One final note, Green building is still a very hot topic this year and I predict for years to come as well. It seems that if you are not heading towards at least learning more about building green, you truly might just miss the boat. There were many different tracks that focused solely on this very important topic. Here are a few articles recaps that will help fill you in on what is going on with Green.  Green by Design, Not just Gadgets, by Jenny Sullivan. Survey Reveals Home Buyers Wish for Energy Efficient and Beyond, by Jean Dimeo. NAHB Lays Out Details for Green Building Program, by John Caulfield. Web Tools Support Green Projects, by Jenny Sullivan.

Overall I think the conference was a good chance to get people back on track and reinvigorated about what they love to do, sell more homes. If you are not already planning on attending next year, I would highly suggest you try and fit it in your budget. IBS is going to be held January 20-23, this year in Las Vegas. You always learn something new at this great event.

Chief Marketer just sent out a new article on their view of what is going to be hot in marketing in 2008. They bring up some good points, with new electronic media becoming more and more user friendly, I think the major trend is going to be focused in that medium.

According to TNS, from 2006 to 2007 ad spending on the internet has increased 16.7%, almost three times any other medium. That being said on average the home building industry spends approximately 3% of their entire marketing budget on internet and electronic media advertising. This is compared to 24% of time that an average 40+ adult actually spends using the internet. These numbers also do not take into count paid search, which is equally as important as actually just advertising on the internet. Actually, in my opinion it is more important.

So if you are not already budgeting to increase your internet presence, via a better website, paid search, search optimization or website advertising, you better rethink your 2008 marketing plan. The electronic age is here and it is only going to increase in the opportunities to get in front of your potential new customers.

Yesterday I attended a speech by Steven S. Little. The topic was on Business Growth and included many of the rules from his book, “Seven Irrefutable Rules of Small Business Growth“. However, it was rule #2: Outstanding Market Intelligence that really got my attention. I got to thinking how this really could help all our clients in building industry, considering all the changes it is going through right now.

One of the most memorable points he made was, “Pull your heads up from your computer or out of the books/spread sheets and take a look around at what is really going on”. He said we need to take a more macro approach to our businesses and place a bit less emphasis on the internal workings. There always needs to be a balance, and too often we get in the habit of doing what we know, and never lifting our head to see the forest through the trees.

He also mentioned that in order to deal with change, we need to recognize it, adapt to it and finally make a fundamental shift and embrace it. It is one thing to notice that there is a problem, but it is an entirely other to actually act upon it. Change is a scary thing, we are all creatures of habit. However, without change, nothing new would ever be created. I think the way to get through this downturn is to change. If we all keep approaching our businesses and their products in the same way we always have, things will just stay as they are.

Change is good! Let’s stop fighting it, just accept it and move forward.

The World has finally sat up and taken notice. We all need to be doing something to help the environment. We all need to focus on what we can do to aid in the fight. One thing that is being talked about continuously in the building industry is LEED Certification.

Interesting enough, LEED Certification is not all about just the environment, it is about business. Everyone is getting environmental. You no longer have a marketing advantage by saying you are building green. It is becoming something that you have to do, not something that is an option. Getting a LEED Certification is not cheap either, you have to look at many different angles of the entire building process to even gain a few points.

As sited in Fast Company, The Green Standard, here are just a few examples of what the point spread looks like. Each action earns a point.

Siting - Reclaiming a brown field site; build near public transportation

Water Use - Landscaping with native plants, capture rain water run off

With all the attention about LEED and the great things they are doing, there are still flaws in the process. Categories are not weighed the same, there are no regional adjustments and the process is complex.

However, things are still changing at a rapid rate. New procedures are being added all the time, with new incentives and equate to greater impact.

It will be interesting to see where all this ends up. For now it is adding value, I predict at some point it will just be mandatory. I guess only time will tell. For now, this is just my observation.

The media is flooded with the headlines “The Bubble has burst”, but what does this really mean to builders and developers as far as marketing and selling their products. The focus needs to be shifted from this doom or gloom amongst our industry to looking forward towards the future.

We need to stop slashing prices, auctioning inventory and go back to the basics. I know inventory needs to move out, but there are better ways than adding insult to injury. We are adding to the problem, by doing the above things. People are saying if the builders and developers are actually slashing prices, their products were over priced to begin with. People are hanging on to wait until prices are at an all time low, to begin buying.

We need to look at why people were buying in the first place. The economy is still at a good place, people can still afford to buy, they are just scared. We need to help them feel that this is a good investment at a great time and not something to be afraid of jumping into. Instead of marketing like a used car salesman, focus on what truly makes your project or product different. Why should someone buy from you? Help educate people on what is really going on and stop adding to the media frenzy.