We doubt that there are many
homebuilders who deliberately set out to short change a
client. But bad planning and inexperience can produce
the same results. As we previously stated,
Keith White Custom Homes has built 2,000 square foot
homes for $120,000, and 2,000 square foot homes
for $200,000. The difference is understanding exactly
what the customer wants before making a bid. Some
homebuilders are so anxious to snag a job that they come in
with a very narrow margin bid. Then the first problem
that comes along, additional labor and unexpected expenses
start eating up the project.
Most all short changes come toward the end. Everyone has
money on the front end but start running short toward the end
and that's where it is really going to show. So time and detail
must be focused from the beginning on things like cabinets, floor covering,
appliances, paint, and trim work. You can put
$5000 in cabinets or
you can spend $25,000. If the homeowner has been thinking
$25,000 and she gets stuck with $5,000 she won't be
happy.We can put all the
quality under the slab and inside the walls that we want,
but what the customer has to see every day are the finishing
details. If we run out of money before the walls get
painted, that customer is going to be outraged. And that's
another reason it pays to have full time people in various
departments, so that you can rotate them where needed and
ultimately nobody gets short-changed. |
