Processes for max efficiency and max profit
You’ve got to start with the customer experience and work back toward the technology – not the other way around
STEVE JOBS
• We have been in business for 10 years
• We build in the Kansas City Metro, spanning Kansas and Missouri
• We have an architectural team, an interior design team and a production team all these services are in house
• We build 24 – 26 homes a year ranging from $500k – $2 million
• There are 10 team members that make up Cardinal Crest Homes and two additional on the commercial side
Focus on the principles I’m going to touch on today and see how they
can be adapted to fit your business or
perspective.
OUR PERSPECTIVE
Processes for max efficiency and max profit
Employee broom pusher
Great broom pusher
Entrepreneur, The Broom Company
Proof of concept
Money equals fun
White water
The Contractor Progression
Processes for max efficiency and max profit
The Broom Company: White water
What you think white water is… What white water actually is…
Processes for max efficiency and max profit
The only way to calm the waters is through processes.
Processes created, implemented and executed create predictable success.
Processes for max efficiency and max profit
Experience society
• If you don’t set expectations on timeline, communication and budget, they will set them for you
• The customer experience is directly tied to your experience – and I would argue your bottom line
• Processes are only the frame work – your personality and creativity is what makes them come alive
• Pulling back the curtain and bringing clients into the team creates empathy, understanding and teamwork
• You are providing a obstacle course map, pointing out challenging areas, highs and lows, and reminding them about the victory at the end
Processes for max efficiency and max profit
The 3 topics we will cover today
Processes for max efficiency and max profit
Sales process
The Funnel The Qualifier The Meeting
Slot schedule process Pre-construction process
What? Why? How?
Design Selections/scope Hand off - start
• Social media
Lead generators
• Parade of Homes
• Realtors
• Past clients’ referrals and word of mouth
• Ads
• Internet
Processes for max efficiency and max profit
PhoneSocial media
Email Office number
Sticky notes
Business card
Pull you over
Processes for max efficiency and max profit
Contractor communication channels
As contractors, it’s easy to input and collect data. It is harder to recall and execute on that data.
Processes for max efficiency and max profit
The need for a funnel and CRM
Customer Relationship Manager or CRM is a technology for managing all your company's relationships and interactions with customers and potential customers. The goal is simple: Improve business relationships to grow your business
Processes for max efficiency and max profit
Website contact form
Buildertrend lead
Website contact form Buildertrend leads tab
Screen share here
Processes for max efficiency and max profit
The Qualifier
Budget Lot/land Design
Processes for max efficiency and max profit
The Qualifier
1. Services and value 2. Building area 3. Price point 4. Questions 5. Additional information
Email or phone
65% or less retention after the first email
1. Schedule time and place 2. Highlight service and value 3. Meeting agenda 4. Additional questions to help you prepare
Schedule email or phone
Highlight budget, lot and design qualifications
Processes for max efficiency and max profit
The meeting, show time!BUILING WITH CARDINAL CREST
FROM INTRO TO DESIGN
FOLLOW US ON
INTRO MEETING1 HOUR MEETING
• DISCUSS YOUR DREAM HOME• GO OVER THE CARDINAL PROCESS• REVIEW SITE LOCATION AND PLANS• SLOT SCHEUDLE TIMELINE
Q & A ABOUT PRICING AND SPECs1 HOUR MEETING
SIGN INTENT TO BUILD $+500.00 DESIGN FEE
RECIEVE PRE CONSTRUCTIONPROCESS TIMELINE WITH DATES &
INVITE TO ONLINE PORTAL
ON SITE MEETING1 HOUR MEETING
• EVALUATE LOT• HOME ORINTATION• GO OVER ANY SITE CONDITIONS• DEVELOPMENT REQUIRMENTS
RECEIVEING PRICINGEMAIL
• PRICING FOR A BASE PLAN ON YOUR LOT• BUILD SPEC PACKET• COMMON SELECTION OVERAGES
*TWO WEEK TIME LINE FOR PRICING IS TYPICAL GATHER DESIGN IDEAS AND DREAMS ABOUT YOUR NEW
HOME BEFORE START OF PRE CONTRUCTION PROCESS
• BASE PRICE• LOT & DEVELOPMENT REQUIRMENTS• EXPECTED UPGRADES• SLOT SCHEUDLE DATES
REVIEWING THE FOLLOWING
WELCOME TO THE TEAM!
• Defines the workflow and decision-making process
• Eliminates potential client limbo
• Puts the ball back in their court
Processes for max efficiency and max profit
AVERAGE SELECTION OVERAGES THIS IS A BREAKDOWN OF THE AVERAGES SELECTIONS OVERAGES FROM THE BASE PRICE THAT OUR RECENT
CLIENTS HAVE CHOSEN.
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FOLLOW US ON
THE ABOVE CONSIDERATIONS ARE NOT EXACT COSTS OF ALL OVERAGES AND SELECTIONS. EACH HOME WE BUILD IS A CUSTOM HOME AND OTHER SITE VARIBLES AND DETAILS MAKE EACH HOME UNIQUE AND DIFFERENT WITH THEIR COSTS.
• Selection house overages expectations
• Baseline price with spec packet
• Site and development requirements
• Option overages
Preliminary pricing exercise
Processes for max efficiency and max profit
What is a slot schedule?
Pro tip: Our slot schedule is planned around the ground breaking and worked backwards
Processes for max efficiency and max profit
• Your attention and time is finite - you focus on clients
• Consistent cash flow, forecasting and production
• Realistic production goals
• It can be a sales generator people want on your schedule
• Encourages clients to commit and plan
• Normalizes spring and summer selling cycles
Processes for max efficiency and max profit
What is a slot schedule?
• Start a slot schedule now, you won’t see the benefits for a year
Doubts
• Lose sells
• People will think I’m too busy
• What if people drop off
• How to hold pricing
Processes for max efficiency and max profit
How to create a slot schedule?
• Expectations and timeline
• Design
• Specifications
• Scope
• Schedule
• Budget
CCH PRE-CONSTRUCTION PROCESSAVERAGE 5 - 5.5 MONTHS
FOLLOW US ON
THE INTENT OF THE DATES REFLECTED IN THIS TIMELINE ARE TO BE UNDERSTOOD AS GOALS TO HELP THE HOME OWNER BETTER UNDERSTAND AND VISUALIZE THE PRE-CONSTRUCTION PROCESS. IN ORDER TO ACHIEVE THESE GOALS, HOME OWNERS ARE
RESPONSIBLE FOR BEING FULLY ENGAGED IN THE PRE-CONSTRUCTION PROCESS. THESE GOAL DATES ARE NOT TO BE UNDERSTOOD AS CONTRACTUAL DEADLINES.
SIGN SALES DOCS COLLECT DEPOSIT1 WEEK
COMPLETION DATE:
ENGINEERING2-4 WEEKS
COMPLETION DATE:
CITY PERMITTING2-4 WEEKS
COMPLETION DATE:
STAKE LOT
GROUND BREAKING CEREMONY
DATE:
HOME OWNER:
ADDRESS:
PROJECTED MOVE IN MONTH
DATE:
FINISH SELECTIONS5 WEEKS
COMPLETION DATE:
**CONTINGENT ON HOME OWNER INVOLVEMENT**
FLOOR PLAN DESIGN/SITEWORK/PRICING4-6 WEEKS
**CONTINGENT ON HOME OWNER INVOLVEMENT**
COMPLETION DATE:
DATE:
SIGN INTENT TO BUILDDATE:
START DESIGN MEETINGSDATE:
Processes for max efficiency and max profit
Pre-construction process define:
Through the Selections tab, we connect pre-construction
teams to production team
Screen share showing how we use the selections tab here
Processes for max efficiency and max profit
FOUNDATION MILESTONE: AFTER BACKFILL & BASEMENT SLAB
PROJECT MANAGER
CLIENT
Deadlines for the Next Meeting
Initial Selections for Framing Milestone - before HVAC starts
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Project Manager & Home Owner
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Pre-Meeting Responsibility
Meeting Agenda
Initial Address the Following Details
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Activity
Please Sign Upon Completion
DATE
PM
CLIENT
Notes
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• Schedule a time for Framing Milestone. _____________
• Discuss projected closing month for home. _____________
Goals
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CHANGE ORDER REVIEW The change order fee (minimum $250.00 per change) will be applied to changes that meet any one of the following criteria: changing materials that have been ordered or procured, changing work that has already been performed, changing finished selections after selection deadlines have passed, and not having selections completed before selection deadlines. The change order fee of $250.00 will be applied every 3 days for each selection that is not completed after selection deadlines. For example, if a home owner had an outstanding selection in tile, carpet, and lighting fixtures, they would be charged $750.00 every 3 days until the selections are complete.
Keep in mind that plans have been drawn and designed to coordinate over 25 subcontractors to finish one product. A change that seems small can affect many trades down the line. Changes will directly affect the schedule.
Current Deadlines
Initial Selections for Foundation Milestone - before framing starts
• +DUGZRRG��(QJLQHHUHG�:RRG���3OXPELQJ�RSWLRQV��)L[WXUH�VHOHFWLRQV�Ī,QFOXGLQJ�7XEV��6LQNVī���'HFNV��'HFN�)LQLVK�2SW����*DUDJH�'RRUV�DQG�0RWRU• Fireplace• Fireplace design• Retaining Walls
• Through the Selections tab in Buildertrend, we connect our pre-construction team to production team
• All teams, including the owner, are working off one online spec book that has been created with the client during pre-construction
Processes for max efficiency and max profit
CONTRACT
PRODUCTIONINTRO
GROUNDBREAKING
FOUNDATION
FRAMING
ELECTRICAL
FLATWORK
PAINT
CLOSE OUT
NEW HOME ORIENTATION
MILESTONE PROCESSEACH MILESTONE COORDINATES WITH A ONSITE MEETING AND AGENDA
TRIMPRE CONSTRUCTION
INTENT TO BUILD• Using defined milestones, we create a road map for our clients where they can visualize the beginning and the end of their custom home experience
• This process is also how we project manage our jobs through deadlines, selections and quality control
• By syncing processes with ours, we hope to tie our experiences together to create empathy and an enjoyable partnership during the build
Processes for max efficiency and max profit
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