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Small Builders offer
GIANT Opportunities
 Some think that the GIANT 400 builders, with
their mountains of cash and leverage to buy vast quantities of building
supplies are an unstoppable juggernaut ready to roll over the medium and
small builders. However, recent numbers show that the GIANT 400 builders
actually lost 0.4% of market share in 2002, which brought their total market
share to 32.2%. This leaves a "giant" market share of 67.8% for smaller builders and
mountains of opportunity in representing smaller builders.
As Patrick L. O’Toole, Senior Editor for Professional Builder, states, “This
market-share decrease by GIANTS illustrates what many small builders already
know: Home building remains a local business in which submarket nuances and
pure hustle make the critical difference with legions of home buyers each
year.”
The advantages that smaller builders have over the GIANT 400 include:
- Smaller builders have the option of building in smaller developments and
scattered site situations that the larger builders wouldn’t find profitable.
- The GIANTS tend to stick to the hot, major markets where constant demand
guarantees profits. There are smaller builders that find niches within these
markets. Additionally, smaller builders are often the only option in those
markets that aren’t deemed major.
- Smaller builders are often able to adapt to market changes much more
quickly because they are aware of them much sooner and have fewer corporate
hoops to jump through to initiate change.
- The GIANTS tend to operate on a production basis in all affordability
levels for housing. The production home systems of the GIANTS tend to limit
customization. Smaller builders can often operate profitably with various levels
of customization and may be able to offer the exact home that a buyer or
market segment wants.
- While most of the GIANTS offer excellent customer service, some buyers
enjoy the hands on process of interacting with the builder throughout the
planning, selection and building process rather than dealing with sales or
design representatives.
While the GIANTS continue to operate in the biggest markets, smaller
builders operate within these markets and others across the nation. Plenty
of opportunity abounds, with more than 2/3 of the market share remaining in
the hands of smaller builders. Smaller builders can use your help as a
Certified New Home Specialist™ to help build their business success.
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Thanks for stopping and visiting us in Orlando
at these 2005 Conventions
Coldwell Banker
February 10-13
Booth #200
ERA
February 14-17
Booth #200
Century 21
February 17-20
Booth #200
RE/MAX
Feb. 27 - March 2
Booth #302
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