Selling products, amenities, and services to enhance your custom homes can be highly profitable for you and bring many benefits to your buyers. In most cases, selling upgrades is much simpler than you might imagine. Here are five ways to approach the topic with clients:
- By definition, a custom builder specializes in providing a unique product that is perfectly tailored to each customer’s needs. Upgrades are a natural extension of your business model. When designing or selling a new custom home, think about what else you can provide the buyers to make them feel special. Clients put a lot of value on uniqueness and customization and that can translate into additional revenue for you.
- Your buyers have enough confidence in you to purchase one of your homes. Use the trust you’ve already established. Seize the opportunity to suggest additional amenities and features that will give them an even deeper level of pride in their home. Make suggestions. Demonstrate the value of the upgrade and then build a case for investing in the upgrade while the work is in progress and before the loan is closed.
- The optimal time to upsell is immediately after the buyers have committed to you as their builder and before you actually break ground on their new home. This can be a small window of opportunity, perhaps as little as two to four weeks. During this time, your buyers’level of optimism is extremely high. They are experiencing the greatest amount of trust in you and your abilities. Maximize this time frame by marketing those little extras that will increase the value of the home and put more profit in your bottom line.
- In virtually every case, it is more cost effective for you to make changes or perform upgrades during construction rather than after the project is complete. There is tremendous built-in value for the buyers to invest in these products now rather than later. Communicate the advantages of moving ahead with your upgrade offers. The costs can be broken down to just a few extra dollars on their monthly mortgage.
- As a custom builder, you are always looking for designs, amenities, products, services, and conveniences that will further set you apart in the marketplace. By being aware of the opportunities to sell upgrades or make constructive changes to your homes, you are furthering your reputation as a custom home builder. Upgrades can also provide an outlet for your creativity and construction skills.
By spending a little time thinking about what your buyers value, you can come up with a list of products and services that they may not have thought of, but for which they would pay extra. Position yourself to be the provider of these upgrades and to profit from the effort.
Paul Montelongo has been a builder for more than 23 years and is a nationally recognized speaker and consultant to the construction industry. Visit him at www.paulmontelongo.com.
