After being drafted in 1966 but failing his physical, Bruce Toll came home and approached his father, Albert Toll, with his desire to become a home builder.
Through the process of building two sample homes in 1967, Bruce learned by experience. He started selling his first homes for an asking price of $17,490, which was a shockingly high price to his father. After that initial shock wore off, Albert had nothing but pride as he watched his two sons start and transform what has become one of the most successful home building companies in the country.
Bruce tells his version of the story in this short video and recounts how the support he and his brother received from their father helped them build the business, go public, and get through the periods of transition. For instance, when Toll Brothers went public in 1986, Albert bought the first 300 shares, which he kept until he died.
Bruce’s advice to others in the industry is to stay with what you are doing and try to do it well. Toll Brothers decided to be an upscale builder in 1973, and that has been its bread and butter since. High-end building, Bruce claims, is easier than entry-level, since it isn’t subject to the same constant price haggling.
In 1973, the upscale housing that Toll Brothers offered was priced around $30,000. At the time, the company was just starting to expand outside Philadelphia. Bruce says the breed of home today is completely different, and he even claims to understand his father’s initial reaction to Toll’s pricing 40 years ago.
Another secret to Toll Brothers’ success? Its commitment to always paying contractors on time. Bruce says Toll Brothers always paid within a week of a contractor submitting the bill. The unwavering attention to on-time payments led to a very committed and loyal contractor base.
John McManus shares the detailed history of Toll Brothers and its inception into the Hall of Fame here.
