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


Employee broom pusher

Great broom pusher

Entrepreneur, The Broom Company

Proof of concept

Money equals fun

White water

The Contractor Progression


The Broom Company: White water

What you think white water is… What white water actually is…


The only way to calm the waters is through processes.

Processes created, implemented and executed create predictable success.


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


The 3 topics we will cover today


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


PhoneSocial media

Email Office number

Sticky notes

Business card

Pull you over


Contractor communication channels

As contractors, it’s easy to input and collect data. It is harder to recall and execute on that data.


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


Website contact form

Buildertrend lead

Website contact form Buildertrend leads tab

Screen share here


The Qualifier

Budget Lot/land Design


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


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


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


What is a slot schedule?

Pro tip: Our slot schedule is planned around the ground breaking and worked backwards


• 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


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


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:


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


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


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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