How Home Building Professionals Can Add More Eye Appeal To Projects, Control Costs and Maximize Profit Margins.
WHITE PAPER, January 2019
You face plenty of unique challenges in today’s economy and market, which include:
− Fewer new build projects than during the real estate boom
− Top-line revenue pressure and tighter profit margins on every home
− Increased costs of lumber, stone and other materials
While we can’t do anything about the slower real estate market, there is a way to control your costs… maximize
profit margins on each project…and provide long-lasting style and design that your client will be happy with for
years to come.
KEEPING CLIENT SATISFIED - EASIER SAID THAN DONE
Your job for the client is to provide them with a home they will love and enjoy for years to come. As you know,
that’s a simple statement to say, but a lot more difficult to do. Clients can be demanding on their requirements
and price, and it’s a challenge to make this goal a reality.
How can you keep your client satisfied, without squeezing your profit margins to almost zero? Let’s look at the
different components and materials that go into a home.
Appliances such as refrigerators and stoves can be difficult to get at a discount price – especially higher-quality
ones – so there isn’t much you can do here.
The same goes for roofing and lumber; you can use lesser-quality materials and improve your margins.
However, the client may not be happy right away, or down the road if these materials wear out faster than he
expected. That can tarnish your reputation as a builder, and that’s the last thing you need in today’s
competitive market.
However, there is one material that can add value to a home, enhance its image, and endure through the
harshest weather and most severe storms. Plus – it lasts the longest of any material that goes into a house.
What is it? Stone.
If chosen and installed correctly, stone can be long-lasting addition to a home that adds value and beauty. Like
any other building material, there are challenges to using stone in a residential or commercial building project.
THE BIGGEST CHALLENGES ON STONE INSTALLATION PROJECT
First – it can be difficult to get a good match for natural stone with the home or commercial building you’re working on. Sometimes you can get close to a good match, but isn’t exactly what your client is looking for. Today you can get synthetic, manufactured stone from high-quality, reasonably-priced and long-lasting materials. It can match your client’s color and texture needs almost perfectly, and looks very similar to natural stone.
Second – it’s difficult to install stone correctly. If someone doesn’t have enough prior experience with the stone
installation process – or if a homeowner wants to do it himself – it could cost you time and cut into your alreadytight
profit margin.
You should have a certified stone installer handling this part of the project, who has at least several years of
experience completing dozens of projects. This minimizes the chances of a poor installation, which could cost
you time, money… and possibly damage your reputation as a quality home-builder.
Any potential harm to your business reputation is the last thing you want in today’s economy and homebuilding
market. A certified stone installer can minimize the chances of a poor install job. The stone company
should offer a guarantee on its work to re-do or modify the installation at no additional cost, in the remote
chance that the installation doesn’t go according to plan.
If the homeowner is cost-conscious and wants to do some parts of the build on his own, reassure him that it’s
better if qualified professionals handle construction and installation – and that you’re doing your best to keep
costs to a minimum.
Third – depending upon the type and quality of stone, it can be expensive to include natural stone in a
commercial or residential project.
CUSTOMIZED SOLUTION WHICH ALSO CONTROLS COSTS
Customized manufactured stone can provide a high-quality alternative that can better match your client’s
needs. This process and product can be less expensive than natural stone, giving you – the home-building
professional – more profit margin, even in today’s challenging market.
Commercial and residential clients want an attractive, structurally-sound addition or improvement to their home
or commercial building that’s also within their budget. No matter how good or challenging the economy is, a
client wants to present the best image possible to friends, family, business associates and customers.
When you select a manufactured stone company, ask about their previous experience creating and installing
stone; and for references from satisfied builders and homeowners. Ask as many questions as you need to feel
comfortable with the company’s experience, and how you believe they’ll work with you and your client on a
future project.
We hope this information has been helpful to improve the work and service you provide clients, and the
profitability of your business.