International Builder's Convention
I attended the Big Show again --- this year in Dallas. Our interest was in seminars and products which would improve our quality. In the product area, we found a couple items we will be testing. We'll report to you later on our results.
Several speakers outlined the results of their company’s quest toward quality improvements. Two of the companies were winners in their divisions of the National Housing Quality Award. This award recognizes U.S. homebuilders for customer-focused business excellence and quality achievement. "Unlike quality awards concerned with only the finished product, the National Housing Quality Award examines the builder's business and quality management practices. The concern is with the builder's ability to deliver a quality product consistently, have satisfied home buyers, and achieve high productivity," says Liza Bowles, President of the NAHB Research Center.
One of the winning companies, 150 miles south of here, builds about 30 homes annually of a size similar to ours. The other company builds thousands per year in a dozen major markets around the country. Both these company representatives spoke at length about their organizations' "Best Practices." Even with the huge disparity in company size there were major similarities in methods and results.
We purchased cassette recordings of these presentations and will use them as the basis of round table discussions with our management team.
Anatomy Class
About every other month we will be holding "anatomy class" at one or more of our houses while under construction. We will select a house that is at a stage of construction that will enable us to show what really goes in under the "skin." The houses will be framed and the rough plumbing, heating, electrical and insulation will already be completed. Just before drywall is applied, it will be easy to see all the inner workings of a quality house. Call us to see when and where the next class will be.
More Quality For Less
Our existing slogan, "Build With the Leader," is being supplemented by a new one --- "More Quality For Less." Together, these two seem to really say it all.
We have just been recruited by Valley Cabinets to use their fine, custom cabinetry in all of our homes. Previously, we used Merillat brand modular cabinets in most of our homes. While Merillat is a fine manufactured cabinet, we are thrilled that special pricing from Valley will enable us to use their unbeatable custom product. At the same time, special pricing directly from DuPont will enable us to include Corian® brand solid-surface kitchen countertops on our standard features list. Come see the new combination at our Parade Home.
Through our high volume purchasing power, we are able to offer high efficiency furnaces, "The Silent Floor System," all Kohler plumbing fixtures, complete landscaping and many more standard, included features at a very competitive price. Coupled with our new Valley Cabinet/Corian® package, Andrew Homes really does provide --- "More Quality For Less."
"According to friends and relatives, building a new home was supposed to be a very difficult experience. I guess they just picked the wrong builder because we didn't find this to be true."
Nancy and Fred Splitstoser, homeowners
"You and your staff reacted to the situation as if we had just purchased the house last month, not six years ago."
Robert and Jeannine Grantham, homeowners
Market Trends Interest rates are the lowest in quite awhile, hovering just over 7%, and existing homes have been selling very well. The National Association of Realtors says that values of existing homes that sold in 1997 were up 5% --- more than twice the rate of inflation. The rate of housing value increase in the Midwest was actually slightly higher --- 6.3%. Last year, home sales hit a record 4.21 million, topping the previous record set in 1996. Parades and Home ShowsThe Fox Valley Home Builders' winter parade will be held February 7, 8, 14 and 15. Our entrant will be a 2,260 square foot two-story located in the Whitetail Meadows subdivision in southwest Neenah. The indoor Winnebagoland Home and Garden Show will be February 13, 14 and 15 in Oshkosh. Valley Home Builders is sponsoring their home and garden show in Darboy on March 6, 7 and 8. The Green Bay (WBAY) home and garden show is being held March 19, 20, 21 and 22.
Stop by and say hello. Pick up a copy of our house plan brochure that features several new 1998 models.
Last month in Fond du Lac we were privileged to show the just completed home of Matt and Sarah Lopinski. I missed the Sunday open house because Jim and I were at the Builders' Show in Dallas. I felt cheated! What fun Nancy Thurner, from my staff, must have had in hosting the event and hearing all the great comments. This 3,600 square foot home was a custom version of one of our plans. To Matt and Sarah: --- the visitors loved your decorating choices and Andrew Homes is most grateful for the opportunity.
1997 Sales Results
In recent years, we have been tracking all building permits for houses from Fond du Lac in the south to Green Bay in the north. Last week I just completed my compilation of the 1997 statistics. The total number of permits issued were down in these areas over 1996 (which had been a strong year) by about 15% overall. (Our sales were actually up about 15%.) Market-wide activity toward the end of 1997 had picked up and it looks like 1998 will be quite busy for the local home building industry in general.
Andrew Homes was the sales leader again in 1997. In homes of all sizes our total square footage built was about 12% greater than that of the second highest volume builder. In homes sized over 2,000 square feet --- our specialty--- Andrew Homes' sales were 4 times that of the number two builder in total square feet.