Loyalty-
So maybe your company has always worked in cooperation with Company A with successful results- great turnaround time and quality work, but Company B comes to you one day promising lower prices, and you decide to use Company B instead. Not an issue, right? They have lower prices and you need that in these troubling times, right? Maybe. But what if you need to go back to Company A because Company B didn't deliver? But now Company A no longer has the same trust in you- previously, they may have jumped through hoops to get your order through quickly as you were a valued customer, they may have worked harder to find the best quality products for you at the best prices because they knew you valued their time and relationship- I wouldn't count on that anymore. Be further aware that the word will quickly spread that you aren't a loyal customer, hurting your reputation as you now try to build a brand new relationship with another company. Have open and honest conversations with your business partners- if you want to go with a company to stay in business and have a good reason to do so, then take the time to explain your decision. There may be something Company A can do to keep your business, considering what a loyal customer you are!
Integrity-
Undercutting the competition's bids just to snag the customer isn't good business- it not only hurts your bottom line, but hurts the industry as a whole. In our industry, some unethical builders will outbid quality builders by promising lower pricing- then as the project continues, the price creeps up as the "extras" the homeowner wanted - originally quoted by the quality builder but conveniently left out of the bid by the unethical builder. Yes, the homeowner should have looked at more than the bottom line, and yes, they should have asked more questions about inclusive details, but doesn't the builder have responsibility here too? Keep in mind that offering a lower bid isn't bad business- but offering it at unrealistic building prices knowing that it won't fulfill the needs of the client is.
Honesty-
This may be the most important value yet. If you can't provide lower prices and still maintain product integrity, then say so. If you find that placing your marketing dollars in one avenue isn't as effective as participating somewhere else, then say so. If you are not going to be able to meet the needs of your client- then say so! And above all- if you do say so- then make sure you do exactly what you said you would. Keeping an open conversation with your clients and business partners will keep them loyal to you. It will also help establish long-term relationships and a great reputation. On the other hand, dishonesty will turn your clients and business partners away fast. It is much harder to fix a bad reputation than maintain a positive one, and one bad ethical decision can stay with your company name for a long time.
In the homebuilding industry, these values not only bring repeat customers, but also build invaluable relationships that will make us stronger as we outlast these troublesome times. Yes, the homebuilding industry has been hit hard the last couple of years- but so have many other industries- so you can believe that your clients are having a hard time too. How you handle your business now will have lasting impressions when our economy stabilizes and homebuilding is again on the rise. There will be a new homebuilding industry and you might not make the same profit on the same item that you sold previously- but if you make the right ethical decisions now, your business will succeed in the future.
One last thing - support the industry that supports you by using members of your local homebuilders association. Members care about building a business (and a home!) together, so be sure to Do Business With A Member!
