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Archive for January, 2012

Details Matter

This week a major table manufacturer delivered tabletops to one of our clients with the holes for the bases drilled in the wrong place. It was a simple mistake but the reply to the request for a solution was, “ask the facility person to re-drill the holes.” No apology, no concern for the inconvenience, no sense of responsibility. This occurs more often than it should.

In an industry that is given the privilege of providing homes and spaces for our elders there are so many missed opportunities to care!

Details matter. They communicate quality; they show consideration for others; they tell the story. Visual cues of cleanliness, the correct paint color, seasonal flowers, a smile, and a moment to listen—all these little things add up to one fundamental value: they communicate respect for each other.

As to the tables mentioned above, after many discussions the manufacturer will be on site today to remedy the issue. We need to encourage each other to do the right thing.

ROI for Models for Senior Living Homes

Everyone is looking to stretch their marketing dollars and maximize their return on investments. This is no different for senior living communities; in order to succeed in the current market, each community needs to generate high-impact campaigns that create sustainable awareness and develop traffic.

A furnished marketing model provides talking and memory points, evokes emotions, and generates a reason to revisit the community. A well-designed model excites and inspires, and allows a prospective buyer to imagine living in a similar space. The model is considered one of the most effective venues for converting a prospect into sales; the savvy consumer expects them.

Conventional wisdom has long-held that a vacant home takes longer to sell than one that is furnished.

In order to create an effective model, it is important to understand one’s market. The current buyer for the senior living independent community is from the “Silent Generation” (those born during the Great Depression and WWII).  Their average age is 78 and they will live in the new community about nine years. Most buyers (58 percent) are single, 54 percent are female, and they are generally quick to recognize economic opportunities. Their purchase decisions are focused on quality first, and they will furnish new homes with family items. Most (72 percent) have some college or an advanced degree. They prefer dogs to cats and more than a third will bring their pet to their new home.

In the Fall of 2011, Design Source, Inc. conducted a survey among marketing directors of retirement communities in the Mid-Atlantic region which revealed the following:

  • Sixty percent use a furnished model.
  • Anecdotally speaking, 100 percent believe it is easier to sell an apartment/villa by using a furnished model.
  • When a model was available, positive comments from potential purchasers were made about color palette, furniture styles, furniture layout, and the accessory details.
  • In the current economy using a furnished model, the sell cycle was:
                           90 days or less – 60%
                           60 days or less – 30%
                           30 days or less – 10%
  • The average community spends between $10,000 and $20,000 to furnish a two-bedroom, two-bath model. (This range includes the use of existing pieces of furniture.)
  • The cost of creating one model (two-bedroom, two-bath) is approximately 7 percent of the gross sale of one home. (The contents of which could be moved to another location when model is sold)
  • The cost of creating one model in  Assisted Living is approximately 8 percent of the gross sale of one home.

It is clear that a model that thoughtfully reflects the ideals and lifestyles of prospective buyers is pivotal in the marketing of senior living housing. Today’s consumers recognize value and appreciate quality; a tasteful, furnished model is proven to be a persuasive selling point. Further, the investment required in developing a model is quickly offset by the resulting sales.

A Model Experience

For seniors shopping for a new residential lifestyle, a key factor in emotionally and financially “buying into” a long-term living arrangement is the well-designed model.  For property owners of senior residences, the bottom line is to sell, while assuring a new place to call home.

Especially in a challenging economy, long-term living community executives affirm that partnering with professional interior designers experienced in the senior housing market can produce increased sales through the power of polish.  Anecdotally, the building industry claims as much as a 30 percent faster selling rate of furnished apartments over empty spaces.

Knowing how to meet the needs of a market where “one size” definitely does not “fit all” requires special finesse and marketing sophistication on the part of elder housing executives.  Leaving the family home can be wrenching for some older adults, while others breeze through a change of address.

“We are reaching out to two different demographics,” says Richard Williams, Vice President for HHHunt, Blacksburg, VA.  “First, seniors, and then second, their adult children, who can influence the buying decision.  We are equally excited to make the move happen when we can appeal to both groups.”

Furnished models encourage wavering potential purchasers to come back to the community to firm up their preferences in competitive markets, proving “seeing is believing.”  Attractive elements in models offer talking points to sales and marketing teams and help differentiate between one community and another.

“Models are excellent ways to continue the marketing process, by inviting prospects to visit after the initial contact.  And at that time, we can eliminate any possible objections to the sale.  We want them to feel welcomed and comfortable, ” continues Williams.

Effective designers bridge the gap between old and new during this transitional time.  Dynamic,  richly colored spaces with varied finishes and textures illustrate how mature, discerning individuals and couples can thrive in an assisted or independent living community.  While respecting traditional design elements such as crown moldings, striking artwork and current color palettes dispel any expectations of stodgy, predictable environments.  Models with coyly placed knitting baskets or too much clutter that suggest an “old person lives there” have no place in the minds of active seniors or their children.  Instead, style-conscious consumers shopping in higher-end communities expect to see granite countertops, dramatic red or plum “statement” walls “that everyone can’t stop talking about.”

Marti Miller, Marketing Director, Cedarfield Retirement Community, Richmond, VA concurs.  “We want to present a space where the client will say, ‘This is beautiful, I could move right in.’  But it is a very fine line between up selling slightly and taking them where they can’t see themselves living.  We want our prospective residents to be comfortable from the very, very start.”

Well thought out models further achieve multiple design and sales goals by showing how furniture sizes “work” within a given square footage.  Full-sized or queen beds, and a reading chair in the bedroom demonstrate a space with ease to move about and show purchasers that they can bring some of their cherished belongings to the “new home.”

“The children want to see mom comfortable and safe, and the parents want to know they could actually live here,” adds Sally Spielberg, Executive Director, Spring Arbor of Salisbury.

Savvy interior designers also incorporate flexibility within their furnishing plans for the benefit of community sales teams.  As models sell and floor plans get tweaked, items inevitably get moved and rearranged.  Quality furnishings and accessories with consistent or complementary colorways and styles can be re-used cost-effectively and keep their value for the owners.

Scenarios of kitchen cabinets stocked with food boxes, dining tables with china and placemats, and closets containing trendy sweaters and stylish flats help seniors mentally create a storyline or “emotional piece” to the shopping decision.  These attractive settings add a warm, human element to even the most sophisticated marketing package.  Absolutely, the “financials” are important to any purchaser.  But so is that sense of “fitting in” that only a stack of well-thumbed books, colorful artwork, and well-appointed furnishing say “you should live here.”

Re-print from September 2010 Long-Term Living Magazine.

Twenty-Five Years!

It only seems fitting to me to start this new venture by saying thank you.  Design Source will celebrate its 25th year in  2012 and it takes many fine people for a small business to succeed and prosper.  So thank you….

… to our clients for providing projects and enduring relationships that allow us to practice our passion, creativity and craft,

… to our colleagues and team partners for challenging us and making us the best we can be,

… to vendors and suppliers who continue to provide quality products,

and especially…

… to our creative team of designers and production folks, and

… to our beloved families and friends who have supported us like only they can.

I look forward to the next ____________!!

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