2003 Pacesetter Awards: Excellence in Marketing

Brian Bosgraaf

It makes sense that Cottage Home, a company designing and building summer homes on the shores of Lake Michigan, would come up with a marketing scheme that includes a vacation. “We wanted to have a permanent model,” says president Brian Bosgraaf, “but I thought it was a waste for it to sit empty.” Plus, most people drive two or three hours to get there, so a logical solution was to let clients inhabit the model for a few days.

“We invite contracted clients to stay in the house for free,” explains Bosgraaf. They’re encouraged to try out everything. The house is packed with high-end materials and appliances, so there’s usually an upgrade the client can’t live without after having lived with it. Bosgraaf jokes with customers that, “we don’t charge rent to stay, but it’s going to cost you.” It’s not such a joke considering Cottage Home made approximately $150,000 in upgrade sales last year.

In addition, Cottage Home sponsors an annual summer celebration with food, drink, music, and either a horse-drawn carriage or golf cart to take guests around to open houses. Bosgraaf also hosts a client golf tournament. “It’s a great way to get clients together and talking about their experiences,” he says, “and it’s fun for the staff.”

Cottage Home also follows through on smaller details like making sure each construction site prominently displays their company name and logo. Each site is kept clean and safe for people who may be driving by and want to have a look. Before ground is broken, a staff member visits each neighbor to introduce the company and talk about the project.

As a personal welcome, Bosgraaf has designed a porch swing (which is part of the company logo) that he offers to build and install free for every client who wants one.

Cottage Home Holland Mich. Type of business: design/build, custom home builder, and remodeler; Years in business: 3; Employees: 11; 2002 volume: $3.8 million; 2002 starts: 6

Michael Cantor

Pinnacle Custom has two motivations behind its marketing strategy. Obviously, the company wants potential clients to know the high caliber of the homes it builds. But it has the additional complication of a parent company, Pinnacle Communities, from which it needs to distinguish itself. “Pinnacle Custom is an extended brand of Pinnacle Communities,” says vice president of sales and marketing for both entities, Mary Boorman. “It’s important that the potential customer base understand what we’re about.”

To let the public in on the company’s custom home expertise, Boorman and Pinnacle Custom president Michael Cantor held a party in an unoccupied, unfurnished spec home. Working with their lender, PNC Bank, they lined up respected economists and financial advisers to speak on the global business climate and give their fiscal forecasts for the next few years. “There had to be something in it for the person invited besides being fed,” says Boorman. “The party couldn’t be rewarding for just us.” While guests got to learn about financial trends and predictions without hearing any hint of a sales pitch, Pinnacle got to show off the bones of the house. “It was an opportunity for guests to see the unembellished home and to really notice the fabulous details,” she adds. “People hadn’t realized we do really custom stuff.” With the wine tasting and hors d’oeuvres that also made up the evening, it’s safe to say the past and potential clients, real estate brokers, and suppliers that made up the guest list went home happy—and with a strong impression of Pinnacle Custom.

Boorman and Cantor will continue their soft-sell approach with a showcase home slated to open next fall. The home will be open to the public for three months and will feature luxury materials and technologies donated by manufacturers and dealers. They plan on teaming with local businesses to hold art openings and other community events in the house, all in the name of gently demonstrating Pinnacle Custom’s capabilities.

Pinnacle Custom Millburn, N.J. Type of business: custom builder/developer; Years in business: 7; Employees: 20; 2002 volume: $20 million; 2002 starts: 7

James McLagan

“I embarked on a marketing campaign with the goal to create an upscale brand name for my company and to distinguish our product from those of our competitors,” explains designer/builder James McLagan. With the help of an outside communications firm, WriteEdge Communications, the veteran company launched a comprehensive five-year marketing plan that focuses on developing a niche in the area’s high-end custom home market.

In addition to producing traditional marketing materials, McLagan joined forces with other local builders to establish an annual showcase of homes. It’s currently the only home tour event in Saratoga Springs, N.Y., and it draws up to 7,000 people to McLagan’s homes each year. The money from ticket sales is donated to local charities like Habitat for Humanity, which received $50,000 from last year’s showcase.

Having newly completed homes immediately and professionally photographed is another key strategy. This allows the company to provide high-quality materials to interested publications on a moment’s notice. In the past year, McLagan has been featured four times in Better Homes and Gardens’ Home Planning Ideas magazine—twice on the cover. By fostering and maintaining relationships with local and national magazines as well as entering multiple awards programs, the company generates a steady media buzz. The resulting clippings can also be used as slick handouts.

“At the same time that we were creating an exclusive identity,” says McLagan, “I also wanted to improve our communication systems and that’s where the Web site has been invaluable.” The site features a regularly updated portfolio, a description of the company and its mission, and a place for media to access the latest press releases. McLagan’s favorite feature, however, is the Client Care Center where customers can enter their own password-protected site that keeps them continually updated on their home’s production schedule, budget, and other design details.

JMcLagan Builders Saratoga Springs, N.Y. Type of business: custom home, design/build; Years in business: 20; Employees: 7; 2002 volume: $2.8 million; 2002 starts: 9

Randolph R. Rinehart

Randy Rinehart scored a marketing coup using a time-honored method: He found an underserved market and went after it. His home base of Charlottesville,Va., lacked builders who catered to the growing active adult population there. So he made himself into an expert on aging in place. He earned NAHB’s CAPS (Certified Aging-in-Place Specialist) designation by taking an intensive three-day course that covered everything from designing for active adults to understanding their psychology. On his own, he assembled a focus group of 15 people between the ages of 55 and 75 to give him feedback on what they wanted in a house. Around the same time, he visited the Universal Design Research Center at North Carolina State University, taking advantage of their extensive resources on the latest accessible products and technologies.

To advertise his new-found skills, Rinehart built a barrier-free show home he called “The Millennium House.” The project spread the word of his proficiency in universal design far better than conventional advertising would have, since it provided the public with a firsthand opportunity to see the home’s age-in-place features. Items such as ergonomically placed appliances, 3-foot-wide doorways, and stepless thresholds got out the message that universal design doesn’t have to involve dramatic design moves. “It’s not rocket science,” says Rinehart. “It’s just rethinking the home, making small changes during the design process. Not only do half of his active adult buyers now opt for universal design features, but anyone thinking about building a custom home in the area knows Rinehart has something extra to offer.

The show home was such a success that he’s planning another one, to be built under the Health Home guidelines of the American Lung Association’s Virginia chapter.

Rinehart Homes Charlottesville, Va. Type of business: general contractor; Years in business: 33; Employees: 3; 2002 volume: $2.5 million; 2002 starts: 4