Solution: This is a problem every custom builder faces sooner or later. No matter how wealthy their clients may be, they will eventually face a conflict between price and perceived quality. Even with an unlimited budget, people will do their darnedest to find a way to exceed it.
When that happens, the builder is caught in the middle. If the buyer goes ahead and pays the extra costs, they resent the cost overruns. If they decide not to go ahead, they subconsciously blame the builder for denying them their dreams.
The selections a buyer makes can have a huge impact on the final cost. In each category of materials there is a hierarchy of price and quality from lowest cost to highest cost. For example, at the lower end of cooking appliances you might find a simple electric range with a single oven. Above that you would find sealed burners and a convection oven, then stainless steel ranges, then professional-grade dual-fuel ranges, then high-end separate components. Different brands also have different perceived values. While each has a different cost associated with them, at some point there seems to be a choice that offers the best value, that is, the best perceived quality for the price.
Just as in the auto industry, there are some choices that are high status at a reasonable cost (Lexus), and others that are high status at an outrageous cost (Rolls-Royce).
The only way around the price/quality dilemma is to reframe the conflict in terms of values, so that the buyers understand that their choices are a reflection of their own values, not something imposed on them by the builder. That’s why the car they drive can be a powerful psychological shorthand for the values they embody. Of course, if they drive a Rolls-Royce, maybe they won’t care what their options and upgrades cost. But I wouldn’t count on it.
Al Trellis, a co-founder of Home Builders Network, has more than 25 years of experience as a custom builder, speaker, and consultant. He can be reached at altrellis@hbnnet.com.
