I’ve brought buyers to every large builder in the City, and quite a few people the small ones as well, and the feedback is generally is generally same every single time- so how do so many of them keep getting the same things wrong?
Surely not everyone can be pleased, but it doesn’t take a genius to identify patterns in complaints, and opportunities for improvement.
A few years ago I actually conducted my very own meta study (study of studies), and compiled notes on this very subject. The mistake I made was that I named the builders by name – with backlash that was incredibly blown out of proportion by both those who lost AND those who felt they didn’t win by enough lol.
Another thing that I learned was that my own experiences and those of my clients were exactly in line with the majority of the public.
So without naming names, here are the TWO major issues across the board, as well as a simple solution that could cure all:
1)Not a single chance to review the construction before the home is complete. This has caused an incredible amount of issues down the road for everyone involved. From a long list of mistakes made during construction, but most notably the major issues that could have been identified and solved before they developed into something larger. While this may seem like a major pain for builders, it is my sincere belief this is the BIGGEST mistake they make. I will explain after.
2) After Sales Service. Described as non-existent by most buyers, this is where many people the mistakes that could have been avoided earlier come to haunt everyone. Leaving a sour taste in the buyers mouths, builders are notorious for skipping the bill at this massive juncture.
The solution?
A simple, yet effective (hear: GENIUS) principle called the Jidoka principle. In essence, this is a concept that empowers operators to detect abnormal conditions and immediately stop work. Made famous by Toyota in the early 1900’s, this principle helped them re-write the record books on production quality and capacity.
In action, Toyota believed that their employees had an OBLIGATION to halt assembly immediately (by pulling a cord known as the Andon Cord) to address any inefficiencies or deficiencies they found. By doing this, they identified that while production slowed down temporarily in the present moment, a much more significant amount of time and money was saved later on by going back and fixing those errors elsewhere. This, as well as a few other core principles formed what became famously known as the “Toyota Production System (TPS)”, and has been hailed as a revolutionary quality control breakthrough with respect to production and manufacturing by Six Sigma (Global Institute of Quality Control).
Another little company you may have heard of that employs this principle is Amazon. There, if a customer calls with a report of a defect, any employee can pull the cord and remove the item from assembly, which has saved Amazon from countless amounts of customer service issues and likely an incredibly large fortune. Which a focus on customer satisfaction by using this principle, Amazon’s success and testament to the Jidoka principle speaks for itself.
So how can a builder use the Jidoka principle?
My belief is that by at least involving the client and a 3rd party quality control specialist in ONE tour of the home during construction, potential issues can be identified and addressed before they turn into much, much larger issues for everyone. This is an opportunity to correct medium sized issues before they become monstrous, not to mention will provide everyone with a clearer understanding and appreciation of the product, the timelines, and the company as a whole.
Not to mention that builders are COMPLETELY missing out on the fact that buyers are excited about this process, and giving them even 1 hour to tour the home will do wonders for their experience, satisfaction and likelihood of positive word of mouth! Have them “check in” on social media for an upgrade (even worth $100 to the builder) to give social proof and spread a positive spin on the builder, and you’ve now turned a production/profit improvement into a grass roots PR movement as well.
Oh… and that After Sales Service issue? Much like Amazon.com, watch those issues dissappear since thre majority of the big issues will have already been addressed long ago.
Now I know builders. Many of them think “this would be a nightmare/pain in the…/ never ending/ don’t have time/ not worth it”, to which I would respond, “Tell me more about how you know better than Toyota (worth 236 Billion) and Amazon (worth 1.7 TRILLION)?”
Do you really think you have nothing to learn from these revolutionaries?
Or do you want to be the next one in the housing industry?
There is an opportunity here for a builder to have the first mover advantage, and I believe the first one to build out, implement and advertise the Jidoka principle will see their client satisfaction, retention, referrals, profit and overall business growth EXPLODE.
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