Strategic Residential Marketing

Having missed a concert by The Bee Gees several years ago, we realized that we had made an error in judgment as Maurice Gibb passed away shortly thereafter and we will never have that opportunity again so for the past few years we have made an effort to see performances by as many of the older performers and groups as possible and last night my wife and I went to see Eric Burdon and The Animals in concert.  In my opinion the performance was “OK” but certainly not stellar.  Burdon, while still having a voice, appears to now believe that high volume, often consisting of screaming, is an appropriate substitute for a song’s melody.  

We had an exceptionally delightful evening a few weeks ago seeing Roger Daltrey perform the Who’s “Tommy” in concert.  The show was phenomenal and if it comes to your town I would strongly encourage you to go.  Daltrey and his band were amazing, playing the entire rock opera non-stop for over one hour. The show builds to a crescendo with the finale, titled above, moving the entire sold-out audience of six thousand plus to their feet for a standing ovation.  I admit to being a fan of the original album, the opera, the movie and even the pinball game that followed (Pinball Wizard). 

I believe that the plot line of “Tommy” is realistic, especially for today, and the message is certainly relevant in this age where fame is short-lived and heroes and idols are often shown to have feet of clay or, when they speak the truth instead of what people wish to hear, they are quickly removed from their pedestals.

The song from Tommy used as the title of this blog is also specifically relevant to the homebuilding industry and to me, personally.  To overcome buyer reticence, inertia and fear, homebuilders today more than ever before need to provide an emotionally meaningful and personally relevant message to each customer so they not only see and hear but also “feel” the compelling message to purchase.  And just as in the song, I am usually retained to provide an “opinion” and the “story” although I seldom expect my clients to follow me up a mountain and I do not expect that if they follow my advice they will see the “glory”, just successful residential developments and homebuilding operations. Read the rest of this entry »

It does not matter whether I go north, south, east or west; to a large metropolitan area or a small remote town.  It does not matter if I am there to explore new market opportunities, strategize a new development, reposition an existing community, work with a homebuilder on new products or otherwise assist a client or if I am in town to teach a class or lead a seminar.  Repeatedly the response I receive to a suggestion for any adjustment or improvement is “It’s different here, you do not know this market.”

Perhaps in the future I will travel in hyperspace to a remote planet near the galactic center where the laws of physics or the laws of nature do not apply and then, and only then, it may well be true that it is different there.  But until that time, the reality is that, regardless of the location, most housing markets in this country and across the globe are far more similar than they are different.

Of course there are local considerations in every marketplace that have impact on the consumer purchasing patterns and help to determine sales by any homebuilder.  There is typically a “good” side of town and a “bad” side of town, a “blue collar” side of town and a “white color” side of town, even a “cheap” side of town and an “expensive” side of town, often all determined by industry and employment centers, roadways, natural barriers and historical development and settlement patterns.  There are locational preferences for specific ethnic and other sub-market groups that must be respected.  There are local architectural, design and product preferences and prejudices that are difficult to change.  These specific factors of each local market are certainly valid but they can usually be identified and codified fairly quickly by observation and market research and the underlying concepts are relatively constant in every market although the details may vary.

More important than these local specifics, however, are the similarities in every market that apply to homebuilding: Read the rest of this entry »

I believe that we are all products of our environment. I was born and raised on the “south side” of Chicago, memorialized in Jim Croce’s 1973 song Bad, Bad, Leroy Brown, and much of that heritage remains with me today.

Perhaps the greatest influence on the development of the south side was the steel mills. First was the U.S. Steel South Works followed by Youngstown Steel, Republic Steel, Bethlehem Steel, and LaSalle Steel. At its zenith, South Chicago helped make the Chicago metropolitan area the leading producer of steel products in the nation. The employment opportunities within the Chicago steel industry stimulated massive immigration in the early 20th century and the south side became a mélange of cultural influences due to its rich ethnic diversity. During my formative years I enjoyed the opportunity to learn about and appreciate cultures beyond my own and I was exposed to cuisines from around the world which shaped my palate and food tastes forever.

Much of the population on Chicago’s south side was Catholic, including large components of Irish, Polish and Mexican residents and the church permeated every resident’s life, regardless of whether or not you were a member of the flock. I will always remember that I lived in “OLP” (Our Lady of Peace) Parish and, although I was not Catholic, my friends drafted me into their church choir for one year as they apparently needed voices regardless of the owners’ religious beliefs. Festivals celebrating various saint’s days were universally attended and Fridays were meatless, including grilled cheese in the public school cafeteria (although my preference has always been pepper and egg sandwiches).

I was constantly being cautioned by my friends against sin and warned about the prospects of hell if I did not change my ways. The Catholic Church typically divides sin into two categories: venial sins, in which guilt is relatively minor, and the more severe “mortal” or “deadly” sins which include wrath, greed, sloth, pride, lust, envy, and gluttony. Although I must admit that I was not immune from all of these, I managed to survive my youth and have so far avoided the prospect of a very warm end although I do live in Florida and it is hot here now. But who knows the future.

I would suggest that the original deadly sins have equivalents within the homebuilding industry and, while probably not recognized by theologians, are usually equally fatal. As the housing markets return, we must be certain that we have put these sins behind us so that we are ready to take advantage of the prosperity that is available in the future. Read the rest of this entry »