Posted September 29, 2020
by Jennifer Kamenca
In a world where labor and material costs have gone through the roof, margin gain has become a challenge. Many builders have decided that offering buyers packages, rather than a design studio experience would take days out of the build cycle and remove the uncontrollable variables.
The problem with the Good, Better, Best model is that buyers that have a budget that falls in between the packages relegating the buyer to the lower package offering. The math on that is eyeopening. If a buyer has an $8,000 budget and packages, run Good ($5,000) and Better ($10,000). The buyer can only spend $5,000 in upgrades, losing $3,000 in margin loss. $3,000 times 300 lots equals $900,000 loss.
Margins and package efficiencies don’t have to be mutually exclusive. Momentum Design has the efficiencies of packages without limiting margins. With predetermined installation methods, areas of installation, product types, grout, trim pieces, edge details, instant field documentation, live pricing, ability to make selections from the comfort of home, and so much more, buyers will choose your community over the competitions.
How do we do it? We work with you and your national vendor agreements to choose a carefully curated product offering. Products chosen are low in variation and readily available. With 36 products, buyers have over 10,000 combinations to choose from. If you add options, options that look different to a buyer, but the same to production/fabrication, you then have over millions of combinations.
Momentum Design gives you everything a package program does, with higher margins and happier homebuyers.
We’d love the opportunity to talk to you more about Momentum Design and walk you through a customized demo. Just click on the blue bar below for more information.
