Homebuyers do not want to buy
a standard model and sacrifice what they really want in a home.
At the same time, builders do not want to sacrifice production
efficiencies by deviating from their standard models. Up to now,
both builders and buyers solved this dilemma through compromise
and each got only some of what they wanted. Mass custom builders
are dramatically changing this scenario.
Mass custom builders defy the
notion that the customer must make sacrifices in order to accommodate
their builder’s production system… so these builders
reengineer their production system. Rather than narrowly focusing
their business on standard products, mass custom builders have
flexible systems that remain streamlined while building one-of-a-kind
home designs. Configuration and design changes are handled as
part of normal business without any special off-line processing.
There is no need to compromise. Everyone wins.
The first obstacle mass custom
builders attack are the features built into standard models that
customers may or may not want to pay for in the base price. Highly
efficient configuration management systems make it easy to add
or delete features to improve homebuyer value. Toll Brothers
of Huntington Valley, PA, well known for its luxury home communities,
assures customers that they will pay for only what they want
by offering base models that don’t include build in features
that customers may or may not want. Customers select from among
270 custom options to design the house of their dreams.
The second obstacle mass custom
builders attack are the extra costs associated with customization.
Mass custom builders place emphasis on developing flexible production
processes that construct custom homes with the production home
efficiency. Winchester Homes, a large-volume builder of entry
and move-up homes in Maryland and Virginia, offers fully customizable
homes. Their motto is "Your Home, Your Way." Winchester
treats their models and option lists like idea books, and encourages
customers to design their home just like they want it.
Does this mean that Toll Brothers
or Winchester Homes just pass customization headaches to their
construction departments? Absolutely not. Both of these companies
build entirely with prefabricated walls from their own panel
plants. Their construction departments do not know or care what
is standard or custom -- they simply build the home to the print.
Mass custom builders can participate
freely in both the custom and production home marketplace with
significant competitive advantages. It will not be long before
they change the marketplace rules nationwide. Anticipate the
coming of mass customization and prepare your competitive strategy
now.