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Selling Energy Efficiency to Home Buyers

  
How Ideal Homes keeps sales up and energy bills down

The recent energy crisis has created a new market for home builders as more and more consumers look for ways to reduce their monthly energy bills. But builders need to do more than just beef-up the energy performance of their homes. The challenge today is for builders to find a way to effectively communicate all the benefits of a high performing home to the consumers.
 
 

“A lot of builders will tell you that their customers don't care about energy efficiency, or that it's not a good selling feature,” said Vernon McKown, Co-owner and President of Sales for Ideal Homes of Oklahoma City.



Vernon McKown has helped his sales team make Ideal Homes the largest builder in his selling area.
 

“The only reason they say that is that a higher performing house doesn't sell itself. Crown molding sells itself, energy efficiency doesn't”.

Ideal Homes realized in the early ‘90s that in order to grow as a business, they had to find a way to get a competitive edge over other builders in their area. By first upgrading the SEER ratings of their mechanical systems, then translating those improvements into real dollars that the homeowner could save each month, McKown discovered an approach that resonated with his customers.

When homeowners were trying to choose between builders, McKown realized that a clear communication of how much his customers could save every month on heating bills was a strong competitive advantage.

“No one will buy a home just because it's energy efficient. You still have to have a good location and good floor plan” explained McKown. “You have to give the buyer a compelling reason to choose you.”
  Today Ideal Homes is the fastest growing new home builder in Oklahoma , despite the fact that they consistently sell their homes for more than $10,000 above the average cost of new homes in the area.

“Just explain it to the customers and people say ‘yeah, that's a good idea'” claims McKown, “I think a lot of builders short change themselves thinking that the customer's don't believe in the technical stuff.”

To help illustrate the benefits of a high performing home, plasma screens are scattered through-out his model homes that highlight specific technologies and energy efficient best practices used during construction. “We use a lot of pictorials to explain how we insulate our walls, how the windows work.”

McKown believes that his customers “get it” because of the visual aids, and also because his sales team takes the time to walk the customer through the home and explain the energy saving features.
    Blower door test. A third party randomly tests each new Ideal Home for efficiency.
 
   

“A successful approach to selling higher performing homes begins with the front line sales people. They have to be able to explain the difference between your product and the competitor's. The sales people have to earn it. If you do a good job equipping them with training, you give them every advantage over the competition” said McKown.

Part of equipping his sales team includes an initiation training program. New hires spend four full weeks learning not only the benefits of a higher performing house, but the building science behind the features, as well.

“The training is very technical and interactive,”

Ongoing training for the sales team also happens each week during the sales meeting.

“Sales managers hurt themselves by using sales meetings as a time to come together to make announcements. You have to do that, but it can't be the focus. They should use that time for training.”

During the weekly three hour sales meetings, McKown uses role playing extensively as a tool to help hone his team's skills to overcome objections and explain the technology of high performance homes. The activity starts with two team members demonstrating their meet and greet presentation, then moves on to a group critique and feedback session.

McKown takes the training very seriously and expects his team to, as well. “If you fumble the ball during a role play, you'll get written up just like you would for showing up late for work,”

In addition to the sales meetings, Ideal Homes sends mystery shoppers with hidden video cameras into the model homes twice a year to evaluate the sales team's pitch. Every member of his sales team gets a DVD of their presentation so they can see how well (or poorly) they communicate – through the customers' eyes.

But even with such a disciplined approach, there are challenges that McKown and the team at Ideal Homes have faced when trying to get sales team members on board with this approach to sales.

“Not all sales folks are cut out to explain the more technical information. Sometimes it doesn't work when you are in a competitive environment,” says McKown. “Some sales people try to be the customer's buddy and build a relationship with them. People won't pay you any extra just because you're friendly.”

About Ideal Homes:
Ideal Homes is based in Norman, Oklahoma and recently received the 2006 National Housing Quality (NHQ) Gold Award. Ideal Homes also built the nation's first Zero Energy Home priced under $200,000 and in 1999 built the 18th American Lung Association “ Health House®”, In 2005 Ideal Homes was both state's largest and fastest growing homebuilder. With more than $50 million in gross revenue, Ideal Homes has built over 6,000 homes and was the first Energy Star Builder in Oklahoma.