Leak #18: Falling prey to “Industry Standards” – Leaking Profits: Article 21

Falling prey to “industry standards” for compensation, benchmarking, and accountability is just one more area to consider when evaluating leaking profits in your home building business. In order to stem the flow of leaking profits you need to set your goals above the standard.

Thus far we’ve talked about many areas where you must evaluate: such as taking into account market share research data, refining your sales approach, and overlooking the cost of your traffic among other leaks.

One of the biggest areas we’ve talked about is looking at your marketing approach. In fact marketing is so important we have two sections on builder marketing for new home sales. By using some of the techniques and information we’ve shared here, you will set yourself above your competition.

While studies have shown how beneficial having on online sales counselor can be for your new home sales business, the majority of your competitors have not embraced this concept. Just as a CRM system is essential, yet so many builders out there use an inferior system allowing those that use a CRM to get ahead of the game.

If you follow along with what everyone else in the industry is doing, you won’t get the edge. If you want to be outstanding, then you need to stand out. Industry standards are designed to be just that—the status quo, the common denominator, an “acceptable” level. Sometimes, we can take the easy way and settle into those habits and patterns that have already been established.

Innovate, don’t emulate.

BOTTOM LINE: Following industry standards are fine for a standard business. If you want to be exceptional, raise the bar.

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