“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.
Do you agree? Disagree? Think I’m clueless? Have a better idea?
Tell me what you think. Leave your comments below…
Happy Selling!
P.S. There are 3 strategies to segment Green. Each of them can be used to create a niche for your business.Find out how you can use any one of these strategies to sell more homes in 2010>>
I believe people are looking for a floor plan that works and help with design ideas first. The energy saving in a new home is just part of the whole package. Most builders are affordable, custom home builders and we all build energy efficient homes.
I am a Certified Green Builder and an Energy Star partner. I find that most people look at that as just part of being a builder. They do not understand what it all means. You have to explain what savings you receive if you build an energy efficient home and how it all works. Explain how drywall and insulation behind the tub on an exterior wall will save energy in years to come.
I would agree, that most people do not care if you are a green builder or not. I find that if I give away my design ideas, most of the time I will get the job. I use a CAD program called Softplan and it works. I give away 3D elevation, change the design, flip the floor plan and move walls.
It is the design and a free estimate they want.
My website will give you a free estimate for building and they can look at floor plans in my library of homes. I can watch people going to the library of homes on my website and see them stay for hours. They even come back for more ideas.
Dave,
You’ve figured it out! Your free design ideas are your “hook” to engage your guests/prospects. As part of a multi-step marketing process you are giving them something first. Your green/energy components are all part of the logical justification for someone to choose you.
Great job and thanks for sharing your experiences!
Merry Christmas to all.
Thanks Dave. Merry Christmas to you too!
Rick-
I understand the common sence approach in selling Green “cater your message to the buyer’s wants.”
I am a bit concerned when we (the professionals) take a least-common-denominator approach. By definition, as professionals, we have more information. We (hopefully) understand the full context of Green Building – that it is not a “means to an end” rather; through following a Green methodology, we can drive better outcomes (a sustainable industry, economy and society). Energy efficiency is one of those positive outcomes, but in my view, we are short-sighting the real (less tangible) benefits of Green Building by a narrow focus on Energy Bills. It is a great WIIFM for the buyer, but what about a longer-term WIIFM for our INDUSTRY and our SOCIETY. It should be about long-term sustainability and we should sell that too.
I think you have accurately captured the will of the buyer today – I just don’t want us to forget Green Building is about a hell of a lot more than Engergy Star appliances.
Thanks Rick
About 5 years ago I had a client who wanted to cut costs. He worked with his refuse hauler and the local utility to recycle 50% of his scrap wood into fuel for the electric utility. The hauler provided a special dumpster for the materials, the builder trained his trade partners what could and couldn’t go into the dumpster and the electric utility paid the refuse hauler for the materials, which cut my client’s dumpster bill’s by 50%.
We now could lower our prices to become more competitive or increase our profits. Does the average buyer care that this is a green practice? A few do but the vast majority do not. Do they care that they can purchase their home or remodeling project for a lower price? ABSOLUTELY.
What I think your missing Charlie is we, the housing industry, dictating to consumers what is and isn’t green doesn’t work. It only works when we first identify what our consumers define is green and more importantly, what they see value in. If energy efficiency is at the top of the list, I suggest beginning the conversation with energy efficiency followed by additional questions as it relates to sustainability and indoor air quality.
Thanks for your comments and Merry Christmas!
Dave: We have found that in our market if we give away the designs and floor plans most of the time the customers just give them to another builder or relative and we lose the job. maybe its just where we live but when we give away the plans we also give away the job. PS:We also use Soft Plan.
Rick,
Great article. While it seems like such a basic marketing concept that “The Only Thing That Matters is What Consumers (i.e. the market) Feel is Important Enough to Pay for” it is often overlooked while marketers are trying to convert the customer to think within their corporate mindset. Thanks for a good reminder to put ourselves in our customer’s ‘shoes.’
We look forward to your participation in our upcoming ASK THE EXPERTS Webinar program on February 9th.
I’m looking forward to it Marie. Thanks for the comment and happy holidays to you!