PHOENIX, Ariz. -- Dennis Webb, vice president of operations for Fulton Homes in Phoenix, began preparing for a slowdown in the housing market more than two years ago. He, along with other company execs, knew that the housing boom could not sustain itself forever, so the company took steps way back in 2005 to prepare. Today, Fulton Homes is probably weathering the storm of the housing slowdown much better than some of its competitors, with results that include a 61 percent increase in options revenue that have "blown away" its expectations.
What did the company do? First, the company did not open a new community in 2006, but instead concentrated on internal efficiencies, including bringing on new product lines, putting in a new back-office system, and shutting down its separate sales and design centers serving its dozen or so communities and constructing a single, lavish 13,000-square-foot design center manned by eight expert design associates, plus individual experts from a three partner contractors in specific fields (home technology, appliances and window coverings). Now, all homebuyers are funneled through the single, private showroom to select their 70+ options. Fulton uses the expertise of New Home Interiors Inc. to set up and manage the design center.
Second, the design center is tied hand-in-hand with the Envision automated options selection software system from Builder Homesite Inc. The software, which is managed by CIO Patrick Hindall, created a product category-by-category and room-by-room options sales "checklist" that Fulton follows with its customers onsite. Homebuyers are given access to the online selection system prior to their design appointment and allowed to create a "wish list" that minimizes their appointment time (usually about 3 hours long) while providing them with more background information to help them make their selections. Plus, the system links directly to Fulton's back-office systems. The company has been able to reduce its contracts department from a staff of seven to a staff of two due to the adoption of Envision.
TecHome Builder editor Jason Knott flew down to Phoenix in mid-July to check out what is making Fulton Homes the hottest thing in Arizona. Here's what he found.