“Green is for Idiots!” Part II- The Green Marketing Answers Home Builders Have Been Looking For…

If you missed Part I of this article and are a bit “miffed” about my title, you can get caught up in about 3 minutes by clicking on this link.

Below you’ll find answers from actual HOME BUYERS- Not from any crack pot marketer or 3rd party Green designation theories…

~Rick

In my humble opinion, the National Association of Home Builder’s (NAHB) Institute of Residential Marketing (IRM) courses are the finest the association offers. To become a member of the IRM, you have to write a case study on the history of a residential development.

I submitted my case study back in 2006 and when I received the critique from the IRM- two comments stuck out in my mind…

1. “How could the developer run out of marketing money?” This was 2006 and the project was a bit “ahead of the curve.”

2. “The developer did a great job of selling lots to builders.”

Yes the project was now in foreclosure. Yes, besides only a few end users, the only owners in this project were builders.

This story reminds me a lot of how the Green movement within the housing industry is selling itself today. It’s doing a great job of selling to our own builder members but how good of a job does it do relating to home buyers?

Have most home builders and remodelers taken some sort of formal education regarding Green housing?

Answer: Yes!

Have many of these same companies attempted to provide a 3rd party certified Green home or project?

Answer: Yes!

Have these marketing and positioning strategies been consistently successful?

Answer: No!

Why?

In a 2008 National Association of Realtors (NAR) study of Home Buyers, recent home buyers were asked what is the “Importance of a Homes Environmentally Friendly Features?”

The answers are below and will tell you EXACTLY home you should be promoting Green…

To See the full report use this link>>

Using the above data you can see home buyers are VERY INTERESTED in one common theme- more money in their pocket through lower utility bills.

What’s the Lesson Here?

The lesson is the same as the builders in my case study learned…

It’s why you need to Segment Your Green marketing and identify what is important to your target market. You need to make it personal, make it real and most importantly- use it to differentiate your company from used homes.

Use this link to watch a video on how to segment Green and finally take the mystery out of selling it>>

Do you agree? Disagree? Think I’m clueless? Have a better idea?

Tell me what you think. Leave your comments below…

Happy Selling!

So said the radio talk show host, as he commented on the current government administrations views on pending Cap and “Tax” legislation.

No matter what your political views are on man made global warming/climate change or whatever you want to call it- are you making a big mistake in the world of marketing “green” housing?

Here’s two stories on consumer’s reactions to Green housing and the lessons learned. I hope you don’t make these same mistakes!

~Rick

I had to say “Goodbye” to a wonderful salesperson I’ve had the good fortune to manage off and on over the last 10 years.

As he was wrapping up his sales duties we discussed a job that was sold- but he was still trying to get into production.

This client struggled to make decisions. She also was very interested in building a “green” project (not a good combination).

The salesperson updated me that most of the decisions had been made and the job was about ready for production. I asked him if the homeowner was still submitting the project for the Green designation program and the answer was “no.”

When I inquired if it was because of the additional decisions required for the designation I was surprised to learn that it was not.

For her- it came down to adding things to the home she didn’t see value in…the extra price didn’t justify the return.

Model Homes

Another client just sold a model home that was built with a Green designation and entered into a home tour.

The tour generated hundreds of traffic units and the model was well publicized that it was a Green home with the designation.

The result?

Approximately 15 traffic units out of 500 previewed the home because of the Green designation.

I asked my client about the person that purchased the home. “Did they buy it because of the green designation?” The answer- a flat “no.”

I asked what the cost to add the features and obtain the designation (I know some of you reading this are thinking there is no “cost”- only an investment. I would tell you that if the buyer didn’t value the “investment” the R.O.I is zero.) About $10,000 was spent to get the designation.

The Fallacy of Green Marketing & Where You May Have Gone Wrong

Oh sure the intentions are good. The execution just stinks!

Anytime you try to use a designation (LEED, NAHB Green Building, etc.) that was defined by someone else and ask a consumer to embrace it as their own is a losing battle.

Why?

Look at it this way. The average Joe and Josephine has no definition for…

• Blower door test
  
• R-value
• Building envelope
  
• Forest Certified
• U-Value
• LEED

And the list goes on and on.

The average consumer DOES understand…

• More money in my pocket from lower utility bills
• My kids are safe and healthy
  
• I live in a clean community

Ford “gets” this. Check out how they are promoting their new 2010 Ford Fusion Hybrid>>. Compare that to how Toyota promotes the Prius…

The Answer

The answer is simple. Make Green personal. Make it tangible for your buyer. You don’t need a designation to do that. You just need to understand what is important to your buyer.

Use this link to find out how to “segment” your Green offering based on your buyer’s interests>>

Until our government and building associations understand this fact, the current designations will continue to do what they have always done…Generate interest but very little sales.

Am I nuts? Have a different opinion? Think I’m the idiot?

Tell me what you think. Post your comment below.

Happy Selling!