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 M. D. Smith & Associates, Inc.

Residential Housing

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When we were retained by this client, it was one of the top builders in the Pacific Northwest.  Ownership owned three corporations focused upon residential housing, the first adult planned unit development in the Pacific Northwest and a commercial construction firm specializing in remodels, tenant improvements and construction of commercial buildings.  We were retained by the residential housing company to look at and recommend changes to improve its "affordable" housing business.

We researched the four county market of King, Pierce, Kitsap and Snohomish counties to analyze competitive offerings, defined the product strengths of the clients offerings and developed a business plan to build 240 affordable housings units in the defined marketplace during the next business year.  In this process, we improved existing product marketing, developed standard operating procedures and created a reporting methodology to measure profitability by house model, subdivision and overall operations that would provide performance measurements to management on a weekly basis.

The company no longer had to wait for financial statements that would give them a macro-view of the business, in some cases 60-days after completion of a specific house.  By recommending improvements in product, marketing, plans, detailed drawings and specifications, bidding and sub-contract procedures we increased profitability from $500 to $1,000 per unit to $6,000 per unit on average hard costs of $34,000.

 

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Copyright 2002 - 2006 - M. D. Smith & Associates, Inc.
Last Modified:  April 17, 2006