Avoid These Classic Mistakes In Community Development
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Avoid These Classic Mistakes in Community Development
19 CR 168 Oxford, MS 38655 www.promatura.com 800-201-1483
Avoid These Classic Mistakes in Community Development 2009
ProMatura Group, LLC www.promatura.com
These Mistakes Can be Avoided Getting Started 1.
Failing to learn who your prospective customers are, what they want (residence, amenities and services), how much they will pay.
7.
Copying the competition and trying to capture the same target market in the same markets: the affluent customer.
2.
Spending money buying the land, architectural design, and securing the permits to build before you know: a. If there is a market; b. The number of qualified, prospective customers; c. If the prospective customers would move to the community that you plan to build in the location where you plan to build it; d. The characteristics of the prospective customers; or e. What the customers want and are willing to pay.
8.
Assuming that there will not be competition in the market area.
9.
Assuming that if you build in an area first you will keep the competition from building in the area.
10.
Making the project “work financially” on paper (increasing prices in the pro forma so that the project will cash flow) and ignoring the economic and demographic truths in the market place.
11.
Building one community that is successful and assuming that the same model will be successful in other locations.
12.
Creating products that do not match the what your customers want and are willing to pay.
13.
Letting the architects and land planners plan the community, irrespective of any information about market conditions (demographic, economic, competitive and the size or type of target market). It needs to be a team approach involving consumer and market research data obtained for your property, and the knowledge and expertise of operations, marketing and property management experts.
3.
4.
Not obtaining a quality market feasibility study by an independent, objective, third party firm. Thinking that all market feasibility studies are the same.
5.
Performing the market feasibility within the company where the underlying, but unspoken message is, “You have to make the results show that the property is feasible.”
6.
Insisting that “your model will work,” even when the market feasibility study suggests it will be very difficult.
Copyright ProMatura Group, LLC 2009 All Rights Reserved 800 201 1483
Page 3
14.
Falling in love with what the architects and land planners have created, before you know there is sufficient market demand and if anyone wants the type of product that is being created.
2009
Positioning and Marketing the Community 20.
Using industry terms (jargon) that are not well understood by consumers and are not defined the same by the professionals in the industry.
21.
Focusing on age.
22.
Ignoring the importance of the “position” or stature of the community.
23.
Showing standard, options and upgrade features that aren’t available.
Planning the Community 15.
16.
17.
18.
19.
Not understanding that the industry is a people business, the best architecture will not cure bad management, the best management will not cure the work of employees who do not have people skills, knowledge, caring, authority to do what is right, and accountability. Focusing on the near term (5 years) for the community and not projecting the opportunities and risks for the property for the long-term (more than 5 years). You can sell today, but what are the projections for reaching build out, particularly if competition comes in.
Sales 24.
Selling features instead of lifestyle , benefits, opportunities, and solutions.
Designing a building that does not support change over time. a. Mediocre construction, b. Requires significant maintenance to remain “fresh.” c. Front-loaded garages
25.
Believing that a pretty building and the real estate will sell the property to the prospective customers.
26.
Assuming that anybody (sales person or not) can sell the community to prospective customers.
Location of the property is in a market that is likely to change (for better or for worse) because of transition of the area, population changes, economic/industry changes.
27.
Not understanding nor using the knowledge of what customers want in their lives to sell the community.
28.
Thinking you know the customer.
29.
Not including knowledgeable marketing and sales professionals in planning the community.
30.
Failing to provide market feasibility results, pro forma information to the marketing and sales team.
Assuming customers of the same age are the same.
Copyright ProMatura Group, LLC 2009 All Rights Reserved 800 201 1483
Page 4
31.
Failing to recognize the importance of life and activity in the community and failing “to stage” the community so that the best of living in the community is seen.
32.
Not planning and arranging for prospects to meet home owners and see their residences.
Customer Service 33.
Not investing in developing a company -wide, community-wide, top to bottom, bottom to top customer service program that everyone believes in and that has visible tangible evidence that the customer service program is in place, being used and is effective.
34.
Leaving the quality of service to chance and assuming that your General Manager and/or Lifestyle Director will instill customer service in everyone else.
35.
Not having a constant, vigilant program of upgrading, renovating, and re-inventing the club house, community space, amenities and services.
36.
Not creating on-going, self-sustaining, employee to employee customer service educational programs.
37.
Not developing systems so that employees are rewarded and can advance (through top quality performance, education, and longevity) in recognition and rewards, even if they continue to do essentially the same job and stay within the community.
2009
38.
Not having a program of measuring performance of the community from marketing and sales to construction, home delivery and lifestyle that provides usable information to upgrade services, plan budgets and keep the community in tune with what the customers want.
39.
Having a satisfaction survey program, but not using the results.
40.
Not using nor maintaining a method to listen to the voice of the customer.
ProMatura has been providing research and consulting services to the 50+ housing industry for 25 years. Call us to discuss how our knowledge, experience and work can benefit you.
Copyright ProMatura Group, LLC 2009 All Rights Reserved 800 201 1483
19 CR 168 Oxford, MS 38655 www.promatura.com 800-201-1483
Avoid These Classic Mistakes in Community Development 2009
ProMatura Group, LLC www.promatura.com
These Mistakes Can be Avoided Getting Started 1.
Failing to learn who your prospective customers are, what they want (residence, amenities and services), how much they will pay.
7.
Copying the competition and trying to capture the same target market in the same markets: the affluent customer.
2.
Spending money buying the land, architectural design, and securing the permits to build before you know: a. If there is a market; b. The number of qualified, prospective customers; c. If the prospective customers would move to the community that you plan to build in the location where you plan to build it; d. The characteristics of the prospective customers; or e. What the customers want and are willing to pay.
8.
Assuming that there will not be competition in the market area.
9.
Assuming that if you build in an area first you will keep the competition from building in the area.
10.
Making the project “work financially” on paper (increasing prices in the pro forma so that the project will cash flow) and ignoring the economic and demographic truths in the market place.
11.
Building one community that is successful and assuming that the same model will be successful in other locations.
12.
Creating products that do not match the what your customers want and are willing to pay.
13.
Letting the architects and land planners plan the community, irrespective of any information about market conditions (demographic, economic, competitive and the size or type of target market). It needs to be a team approach involving consumer and market research data obtained for your property, and the knowledge and expertise of operations, marketing and property management experts.
3.
4.
Not obtaining a quality market feasibility study by an independent, objective, third party firm. Thinking that all market feasibility studies are the same.
5.
Performing the market feasibility within the company where the underlying, but unspoken message is, “You have to make the results show that the property is feasible.”
6.
Insisting that “your model will work,” even when the market feasibility study suggests it will be very difficult.
Copyright ProMatura Group, LLC 2009 All Rights Reserved 800 201 1483
Page 3
14.
Falling in love with what the architects and land planners have created, before you know there is sufficient market demand and if anyone wants the type of product that is being created.
2009
Positioning and Marketing the Community 20.
Using industry terms (jargon) that are not well understood by consumers and are not defined the same by the professionals in the industry.
21.
Focusing on age.
22.
Ignoring the importance of the “position” or stature of the community.
23.
Showing standard, options and upgrade features that aren’t available.
Planning the Community 15.
16.
17.
18.
19.
Not understanding that the industry is a people business, the best architecture will not cure bad management, the best management will not cure the work of employees who do not have people skills, knowledge, caring, authority to do what is right, and accountability. Focusing on the near term (5 years) for the community and not projecting the opportunities and risks for the property for the long-term (more than 5 years). You can sell today, but what are the projections for reaching build out, particularly if competition comes in.
Sales 24.
Selling features instead of lifestyle , benefits, opportunities, and solutions.
Designing a building that does not support change over time. a. Mediocre construction, b. Requires significant maintenance to remain “fresh.” c. Front-loaded garages
25.
Believing that a pretty building and the real estate will sell the property to the prospective customers.
26.
Assuming that anybody (sales person or not) can sell the community to prospective customers.
Location of the property is in a market that is likely to change (for better or for worse) because of transition of the area, population changes, economic/industry changes.
27.
Not understanding nor using the knowledge of what customers want in their lives to sell the community.
28.
Thinking you know the customer.
29.
Not including knowledgeable marketing and sales professionals in planning the community.
30.
Failing to provide market feasibility results, pro forma information to the marketing and sales team.
Assuming customers of the same age are the same.
Copyright ProMatura Group, LLC 2009 All Rights Reserved 800 201 1483
Page 4
31.
Failing to recognize the importance of life and activity in the community and failing “to stage” the community so that the best of living in the community is seen.
32.
Not planning and arranging for prospects to meet home owners and see their residences.
Customer Service 33.
Not investing in developing a company -wide, community-wide, top to bottom, bottom to top customer service program that everyone believes in and that has visible tangible evidence that the customer service program is in place, being used and is effective.
34.
Leaving the quality of service to chance and assuming that your General Manager and/or Lifestyle Director will instill customer service in everyone else.
35.
Not having a constant, vigilant program of upgrading, renovating, and re-inventing the club house, community space, amenities and services.
36.
Not creating on-going, self-sustaining, employee to employee customer service educational programs.
37.
Not developing systems so that employees are rewarded and can advance (through top quality performance, education, and longevity) in recognition and rewards, even if they continue to do essentially the same job and stay within the community.
2009
38.
Not having a program of measuring performance of the community from marketing and sales to construction, home delivery and lifestyle that provides usable information to upgrade services, plan budgets and keep the community in tune with what the customers want.
39.
Having a satisfaction survey program, but not using the results.
40.
Not using nor maintaining a method to listen to the voice of the customer.
ProMatura has been providing research and consulting services to the 50+ housing industry for 25 years. Call us to discuss how our knowledge, experience and work can benefit you.
Copyright ProMatura Group, LLC 2009 All Rights Reserved 800 201 1483
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