Did you know, if you’re building anything between 5 and 50 plots a year, you’re likely to be paying between 8 to 20 times more than you need, to provide After Care?
In today’s climate, can you afford to overlook such a significant cost reduction opportunity?
We have been providing ‘fixed price’ after care to new homes developers for more than 20 years, so we’ve acquired a huge amount of knowledge and data. We understand how difficult it can be, especially for the small to medium size business, managing after care, meeting your warranty obligations, and keeping customers happy.
Many developers don’t even know how much they are spending, so we’ve got some numbers to share with you. This is based on a sizeable cross section of businesses in the 5 to 50 plots pa range:
People are always the largest expenditure item and indirectly there are further expenses often overlooked e.g., holidays, sickness, recruitment, training etc. Total people costs represent about 90% and the remainder is made up from office and system … plus a couple of further areas again largely unknown or overlooked and these are:
1. Management Distraction Time spent by senior managers who get ‘sucked’ into problems and complaint escalations.
2. Compensation Every so often, to defuse a problem, it isn’t unheard of that a developer will provide something by way of product or service at ‘no cost’ to help close an issue.
How to reduce this not insignificant financial burden without loss of quality or service
After Build has built an operation focussed on delivering fixed price after care to the developer. This means that, regardless of how many defects may be reported to us, the price (per plot) remains FIXED. So, you regain control of your after care overheads!
The potential savings are far too large to ignore - this chart compares After Build’s costs with the Developer’s, to deliver after care (per plot pa). If you feel your business may be experiencing similar pressures and you want to discuss ways we can help, contact Mark Fawcitt markf@afterbuild.com
[Note, all values expressed exclude contractor costs (often incurred if a contractor fails to meet their after care obligations, forcing the need to source an alternative). Contractor costs remain the developer’s responsibility].