Monday, December 29, 2008

Paradox of Choice

We've been spending a lot of time studying what makes for an exceptional homebuilding experience vs a mediocre, or even a bad one. One of the key elements that continues to resurface, is that consumers don't fare well with excessive choice. (Please go to Ted.com and take a look at the lecture the Paradox of Choice. You will find yourself nodding in agreement all the way through as the lecturer tells his tale of sifting through 175 choices of blue jeans). The homebuilding industry is one of the worst offendors out there- there are easily 10,000 choices of plumbing faucet alone.

No customer can tolerate looking at all that choice and they shouldn't have to. It should be the builder's job to select the key elements of the home, in a fashion that suit the Builder's vision. If the customer likes the vision, great, they should go ahead and do business. If not, that's fine too. But the way the industry has evolved, unfortnately, is that builders don't develop a vision, and let the customers struggle with doing all the work and selecting the look. The result is intense frustration for the customer because the job is overwhelming, petty and cruel! All too often, the results look pretty poor as well and this compounds the dissapointment.

Classic case happened to us 3 years ago. Picture two nearly identical homes- half a block apart. Home #1, the client was from out of town and let us select the entire home top to bottom. (she told us she wanted "dark" hardwood, that was it). The home turned out super of course- our design team never makes a mistake. The client moved in and got on with life. Home #2- identical floor plan- the customer demanded to select everything in the home from hinges to doorknobs, to mouldings, all surface finishes. The client struggled to make everything match, spent $60,000 more on mouldings, glazed railings, cabinets, and imported tile, the home took 3 months longer to build (the tile had to be shipped via the Panama canal)- and- frustrated everyone in the process. The tragic thing about the whole incident was that home #1 actually looked better! It was put together colorwise, everything matched and fit. Because there were no delays, the tradesmen got into a rhythm and a flow and the fit and finish was better as well.

Second example- from New England. A builder called CP Morgan. They build very quick and with very limited choices for the customers. And they win their local Customer Choice Award consistently. Meanwhile, across town, a competing builder permits its clients to select anything and everything- they brag about their flexibility- and consistently come in lower in their Customer Choice rankings. It is the additional level of choice, that frustrates the clients!!

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