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Building Industry’s Sneaky Sales & Marketing Tactics
Struggling to tell the real offers from the fake ones? There are a myriad of offers and promotions available when looking to build your first home, but you will be surprised to cover what’s really behind these deals.
In this blog we will do a deep dive into the sales and marketing tactics in the industry. By exposing some of these secrets, you can make sure that you get the best out of your builder and avoid these pitfalls.
Sales and Marketing Tactics Exposed
Firstly, let’s debunk all these “free” offers. You should know that a builder will not give you anything for free. Whether the offer is a “free” kitchen upgrade worth $50,000, or a “free” swimming pool, or an offer to pay your rent while you build, it simply does not exist.
The offer of “paying your rent while you build” is a common sales tactic, but do not mistake it for a good offer. This clickbait tactic is simply a marketing ploy to get you hooked so they can get you in person for a consultation. This is why you should never pick a builder based on their promotions.
Understanding the Terms
If we break down these promotions, we can better understand the terms and hidden costs. Let’s look at the offer to cover your rent while you build. At first glance, it sounds like a fantastic deal—who wouldn’t want their rent paid during the construction process?
However, when you take a closer look at the terms and conditions, the truth emerges. The builder isn’t simply handing over money out of the goodness of their heart. Instead, they’re incorporating the cost of your rent into the overall price of the home.
If the base price of the home is $280,000. With the promotion, the price is bumped up to $290,000 to include the “rent payment” offer. When settlement occurs, the builder then reimburses you $10,000 of your own money that you’ve already paid upfront.
While this may seem like a convenient solution for covering rent expenses, it’s important to recognise that it’s essentially your own money being circulated back to you. This arrangement can be problematic for those operating on tight budgets, as it inflates the overall cost of the home without providing any tangible benefit. If your budget is already stretched thin at $270,000, adding an extra $10,000 to the base price of the home simply isn’t feasible. It forces you to make sacrifices elsewhere or risk overextending yourself financially.
Take a Look at the Time Frame
The same rule applies for time frame promotions. Many builders offer fast track guarantees and accelerated construction time frames as part of their promotions. However, these promotions that sound too good to be true always are.
If you take a look at the fine print, you will see that these plans are contingent on sticking to a standard plan for a home without making any alterations. This means that builders can expedite the pre-construction phase because they’re working with pre-existing plans and drawings. While this approach may suit some, it’s not beneficial to those who want to personalise their designs.
Builders are also notorious for finding the loopholes in these construction time frames. Often clauses are added that allow them to extend the construction time frame with factors like trade availability, supply chain disruptions, or unforeseen circumstances such as COVID or adverse weather conditions.
Picking a builder based on a “6-month construction promotion” or their current marketing deal is always too good to be true. Always check for the hidden terms and do your research into their past customers and their experiences.
Misleading Pricing
You will also find these clickbait strategies when looking at house and land packages. If you see a promotion for a house and land package advertised, you will often see a little asterisk on the side, this is where they will have their hidden terms.
Imagine you have a budget of $420,000 and you see a package priced at $399,000. The first thing that will happen when you inquire, is you will receive endless sales calls from the company before you eventually find out the real price of the package. Eventually you will find out that to have aircon, blinds, flooring, or any other alterations you want, the package will actually cost you $440,000. This is why price and promotions alone should not lead you to choose a builder.
If you are looking at display homes, you will find the same tactics used. Companies will have flashy marketing and products to get you in the door and close the deal, leaving you at the poorer end of the bargain.
Display homes are great to walk through to get ideas but always keep in mind it’s not going to be a realistic expectation of the home you will get.
Choose Your Builder Carefully
When choosing a builder, focus on more than just price and promotions. Consider factors like their ability to stick to timelines, their reputation among past clients, their experience in the industry, and their responsiveness to market trends. Assess the quality of their workmanship and the reliability of their trades and suppliers. Ultimately, prioritize substance over sales tactics to ensure you select a builder who will deliver your dream home with integrity and professionalism.
Seeking Guidance?
For those who are feeling overwhelmed or uncertain about the home-building process, you’re not alone. I’m here to help you navigate through any uncertainties or roadblocks you may encounter along the way.
If you have any questions about sales and marketing tactics, or if you’re uncertain about choosing a builder for your project, don’t hesitate to reach out. You can book a call today to find out more! Stay inspired, stay informed, and stay confident as you embark on this exciting adventure.
Feel free to send me a direct message, and I’ll be happy to assist you. I’ve helped numerous clients navigate through this process, and I’m here to support you every step of the way.
