- impact
- CASE STUDY
HH LAND DEVELOPMENTS
Overview
THE PROBLEM
HH Land Developments was losing deals to competitors and did not know how to sell their more value-driven materials to a market that competed on price and aesthetic. In addition, they lacked an outbound sales strategy.
OUR SOLUTION
Rose Garden helped create a new sales script and messaging that accurately positioned HH Land Developments as the more structurally superior product. In addition, Rose Garden established a sustainable outbound sales strategy for HH Land Developments.
THE RESULT
After working with Rose Garden, annual revenue jumped from $4.3MM in 2011 to $11.3MM in 2012, steadily increasing to $14.9MM by year end 2014.
The Challenge
HH Land Developments occupied an exclusive price point for the real estate market. The average house built was priced over $900k. In a market where only 5% of the population could afford a home over $400k, each lead was worth its weight in gold. Their annual revenue for 2011 was roughly $4.3MM, well below company expectations. Having been in business since the early 80s, the company’s reputation was impeccable, but they were not seeing the results they desired.
HH Land Developments’ competitors offered cheaper and inferior structural components but maintained or even improved aesthetic qualities in homes. Thus, they were routinely out-bidding HH Land Developments. Customers were unaware of the structural issues of the cheaper components and were mainly interested in aesthetic features and the final price.
To compound this problem, HH Land Developments did not have an outbound sales strategy; their sales activities were reactive and inefficient.
Upon diagnosis, Rose Garden saw a way to solve both problems by transforming HH Land Developments’ sales process into an experience that educated and engaged the customer.
Our Solution
First, we needed to draw the clients’ attention to structural shortcomings in the competitors’ bid without directly attacking the competitor. At the same time, the client needed to be educated as to why the structural components were in the bid and why the investment was necessary over the long term. This needed to be done in a manner that did not bore the customer.
Rather than sending the quote to the client based on requests for features, the client was asked to take part in the planning of the home floor plan. This would have the client more invested in the process and thus less likely to move to a competitor after a price was derived.
An initial non-refundable deposit was taken from the client at the early stages of the process. This was different from industry practice, as all the competitors would take a deposit that was refundable. This was the key stage to execute with precision and flawless sales technique. Once a deposit was taken, the presentation of the final price was, in essence, a formality, as we were assured the client would not back away from the deal.
Rose Garden completed all steps in conjunction with HH Land Developments. The client hand-off would occur after the second stage payment and the builder would complete the transaction after Rose Garden had a firm and unwavering commitment from the client.
The Results
In the coming months, sales improved drastically. Clients were committed and happier and the communication was flawless. Moreover, the numbers directly represent this. In 2011 before Rose Garden became involved, annual revenue was $4.3MM. This grew to $11.3MM in 2012, $12.7MM in 2013, and $14.9MM in 2014, breaking company records each year.
In 2014 when the market saw sales decline, HH Land Developments was as busy as ever.
Increase in annual revenue
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