It’s all about information, and this simple, unique approach to connecting your sales team with up-to-the-moment cost data is the secret to higher profits and better margins in 2019 and beyond.
It all started when I was five years old.
My earliest childhood memories are of new home construction sites – picking up wood, carrying supplies and (best of all!) going to McDonald’s for lunch with my dad and his crew.
I also remember sitting in our kitchen as a young boy, drinking a can of Coke and listening to my father talking about costing – how the price of wood had gone up a few cents, and how that would impact his margins in a negative way, etc.
Having literally grown up in the new home construction business, I’ve seen all the trends and (most important) the massive impact technology has had on the industry.
The Cost of Failing To Adapt
We’re a long way from my childhood of the 1980s (McDonald’s is still around for lunch, of course!), and the massive disruption to the industry thanks to technology is something that has put more than one builder out of business.
Here’s where things get interesting.
I’ve always had a lifelong passion for automation, leveraging the power of data and using emerging technology, and I immediately saw (as the Internet came online and has grown over the past few decades) a massive opportunity in the construction industry.
Machines Meeting Humans (and Making Profits)
Imagine this scenario: Here is your top sales rep with an iPad in hand, meeting with a young couple about to buy their first home.
As they discuss what features they want in the home – the number of bedrooms, the type of counter finish in the kitchen, even the light fixtures and faucet types – your sales rep quickly types in numbers and taps boxes on the tablet.
Behind the scenes, thanks to automation, data and technology, the iPad is “talking” directly to your costing database, immediately sorting, organizing and categorizing raw costs, profit margins and potential “add ons” that won’t hurt your bottom line (but wouldentice and excite your young buyers).
If, for example, the cost of wood went up a few cents earlier that morning, your costing database would know, and it would “tell” the iPad in real-time how that impacted your potential profit margin based on the square footage the prospective couple said they wanted the master bedroom to be.
Data = Dominance in Today’s Construction Marketplace
It might sound like science fiction or rocket science if, like my dad, you started your building or construction company back in the days of corded telephones and fax machines.
But this type of real-time, integrated technology is where the industry has already gone – you just may not realize it yet!
My passion is helping builders leverage the power of data (cost of materials, property values, lot sizes, square footage, etc.), marrying that to profit margins via automation and technology and then delivering it directly into the hands of your front-line sales professionals with an tablet device.
The “Pleasing” Power of Allichu
Having spent a few years of my youth living in South America, I learned many native phrases and languages, one of which was “Allichu.”
Simply translated, “Allichu” means “please” in English.
When I created my customized automation sales tool built specifically for builders and construction companies, I named it “Allichu,” with the idea being, “Please provide with me with the information so I can help you.”
If you think about it in those terms, it makes perfect sense – the home buyers gives your sales rep the information (what we want in a new home), and your sales rep simply plugs that information into a tablet device in real-time.
In mere seconds, using Allichu as the gateway, your costing database “tells” the tablet in the sales rep’s hand what type of margins and profit areas are in play based on the information the buyer has shared. It can also identify areas of interest to the buyer (again, based on their information he or she has shared) that will not hurt your profit margin considerably to add into the equation or offer.
That allows your sales rep, again in real-time, to take advantage of the reality of how sales happen – people are emotional creatures, and make emotional decisions to buy. (Even when it’s a 6 or 7 figure home!)
So, when your sales rep, in real-time, can sweeten an offer (and know it doesn’t hurt your bottom line!) by adding in “free” or “one time only” upgrades or add-ons if the buyer signs and puts down a deposit, etc., that oftentimes can tip the scales to move someone from hesitancy and inaction into excitement and taking action.
Want To See How It Works?
If you want to see Allichu in action, I’d love to show you.
Click here to schedule a time for us to chat, and I’d love to demonstrate for you just how easy and intuitive it is to use.
What do you say?
About The Author
I help builders and construction companies increase revenue, skyrocket productivity and reduce costly waste by leveraging a unique mix of data science, automation tools and technology, along with applying organizational psychology (the “people” part of the equation!) and proven business principles.
I also still enjoy eating McDonald’s for lunch whenever I can.