Housing Giants - April 10, 2008 - (Page 21)

insulation and drywall. On the vast majority THE TALLY SHEET of houses, we can price the home, with all When Horne tallies the benefits of BAY, he the custom changes, within an hour. It starts with the hard numbers. “Our hard never takes more than 24 hours. And cost variances used to run over 2 percent because it’s all computerized, we’re now consistently,” he says. “Last year in Austin, much better at purchasing only what we where BAY is most mature, we averaged sell in the sales office. .89 percent variance between our “We can go from CAD drawing to computer-generated estimates and actual purchase orders costs in the field. within six hours,” “In 1999, I learned a lot. … I And we have some Horne says. “We really didn’t know how to run supers operating at still do a few things a homebuilding company. … variances of less manually, but most What this whole thing did for me than .01 percent.” of our quantities are Horne personally, it gave me the ability BAY says since generated became to learn how to really manage a operational,Wilshire electronically.” company.” When the has added 300 company started — Ed Horne, on how the processes basis points to its the process, the margin. and people build a close home profit contract-to“That’s including builder-customer relationship construction start 2007,” he says. process ran “We’ve been able between 90 and to hold our margins 120 days. With the because people will new systems up pay a premium to and running, the have it their way.” company now In fact, Horne averages 54 days says Wilshire is — close to its goal of 45. Horne attributes getting a pricing premium of $10,000 to that to an on-your-lot program. $15,000 over competitors for the same size “That throws some real curves at us,” he house because of BAY’s customization says. “On houses with minimal changes, capability. “It’s something that differentiates we’re now getting start packs to supers in us from competitors — especially the 30 days.” public builders. It delivers Continued a disproportionate value WWW.HOUSINGGIANTS.COM 4.10.08.HOUSING GIANTS 21 http://WWW.HOUSINGGIANTS.COM

Table of Contents Feed for the Digital Edition of Housing Giants - April 10, 2008

Housing Giants - April 10, 2008 Contents Viewpoint News and Moves Market CEO Spotlight The New Housing Demographics

Housing Giants - April 10, 2008

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