Builder- March 2009 - (Page 64) AMERICA’S BEST BUILDERS 2009 says—and high visibility. Historically, more than 20 percent of its sales traffic has come from people driving past its sites. Another benefit is that Dragas can leverage existing infrastructure instead of draining cash reserves or borrowing to improve raw land. When the market was hot, it was a tough policy to follow, Dragas admits, even though it kept the company from buying over-priced land. “When we were in the middle of the building frenzy, competitors were gobbling it up at unheard-of prices,” she says. “You question yourself. ‘What do they know that I don’t know? Am I being too restrictive? Where am I missing this?’ ” Ultimately, though, it kept the company from getting stuck with parcels that other builders bought at inflated prices—and now can’t sell at any price. “We looked like idiots in the boom times when everyone was rocking and rolling,” Dragas says. “We may look like geniuses now.” A SEAMLESS PROCESS SITE SPECIFIC: Strict land-buying practices keep The Dragas Cos.’ properties in high-traffic corridors. Joyce Witt, senior vice president of administration and condominium property management, says that from the company’s early days, it has strived to keep its critical processes in-house, from land acquisition and development through warranty service. “Even when there were three people, we did our own land, our own permits, our sales, we even did our own mortgages,” she says. “We all operated out of one room. We didn’t take vacations or lunch breaks, but we got it done. Now, with over 60 employees, we’re doing the same thing, but in a much more technical way.” Besides contributing to the bottom line, it’s also helped Dragas differentiate from its competition. “We’re the only company that provides the entire experience for our customers,” says COO John “Buck” Buckley. The policy also offers yet another measure of control for strategic planning. “We’re the ones acquiring the land and doing the entitlements,” Buckley says. “We’re not subject to the whims of other companies we’re working with. As Helen sets her sights five years down the road, it allows us to do that unencumbered by the agendas other builders have to work with.” Having minimal debt and healthy retained earnings gave The Dragas Cos. the ability to do something very few builders have done lately. Not only has it not cut its marketing budget, it actually increased it by 20 percent and added a staff member to focus its efforts. Marketing director Donna Ponti works closely with Sally Horvath, vice president of internal operations, who oversees the sales department. “We know that every sale will be more difficult to get now,” Dragas says. “We want to keep our presence high in a down market.” The company leveraged its 40th anniversary in 2008 to redesign its logo and bring consistency to the look of its marketing materials. Ponti also used the anniversary as a launching point to expand Dragas’ advertising from strictly print into other media. “While we do have a plan of attack, we adjust to whatever feedback we’re getting from our agents,” Ponti says. “That’s another advantage of vertical integration.” CONTROLLING ITS DESTINY Community involvement is a strong component of The Dragas Cos.’ corporate culture; the company participates through both charitable contributions and local activism. It takes “very proactive efforts to favorably influence local market conditions,” the company wrote in its entry, with longstanding membership in business organizations that impact employment, public policy, and the region’s economy. The company also is very active politically, and members of Dragas’ management team serve on local and state boards for transportation, higher education, and economic development. A prime example is the effort to retain the Naval Air Station at Oceana in Virginia Beach, the city’s largest employer, when it was placed on the potential closure list by Base Realignment and Closure. A Dragas executive led a group of business leaders and citizens who lobbied for base retention, and he worked with local and state officials to help develop a strategy to defend the base from closure. Ultimately, the base stayed open. Looking ahead, Dragas says that in 2009, the company will work to capitalize on its strengths. “I expect we’ll be able to maintain or increase our market share,” she says. “I think it will continue to be a challenging environment for the industry as a whole, but I think we’re well positioned to come out of it in good shape.” Specifically, she says that for the first time, the company is considering buying existing multifamily apartments to rehab and reposition as condominiums. “I see opportunity there,” she says. “I think some pension funds or REITs will come under pressure. Doing something like that may help us drive a little further down in terms of the prices we can offer in work(see page 66) force housing.” Photos: Steve Morrisette 64 ■ B U I LD E R m a rc h 2 0 0 9 W W W.BUILDERONLINE.COM http://WWW.BUILDERONLINE.COM
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