Incentives can generate sales, but so can quality

by WOHe

A survey of builders conducted by the National Association of Home Builders reveals that most builders continue to use incentives to bring in business. Tough times call for creative thinking, which can get you far in life and business. But, can incentives be powerful enough to bring a potential client down off the fence?

Before thinking about incentives, remember that a commitment to overall quality makes an incentive more attractive. An incentive backed by excessive cost-trimming and corner-cutting has diminished value, so dont’ let the housing slump cause you to lose sight of the product you’re selling.

Back to incentives … NAHB survey results reveal that nearly three-fourths of the builders surveyed in June (73%) reported they were currently using and will continue using at least one incentive unchanged. Many builders, but far from a majority, said they were adjusting their incentives programs — by changing existing incentives or initiating new ones — to compensate for not having the tax credit anymore.

Fifteen percent of the builders indicated they were altering at least one of the incentives they had been using and 12% said they were adopting at least one new incentive, with some overlap between the two responses. In addition, 15% of builders told NAHB researchers they were initiating at least one new sales incentive, but for reasons unrelated to the fading tax credit.

All this makes me wonder if incentives are always part of the program, or if incentives are tools that are used only during recessions or other slow times. Or, is it a combination of both wherein you always have incentive programs but add to them during slow times?

What do you do at your business?

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