Differentiate by Selling Efficient New Homes
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1 Differentiate by Selling Efficient New Homes Doug Eddie NV Energy Steve Hofer CLEAResult
2 Introduction Boom Boom Boom BURST
3 Market History Radius = 11 Miles Top 10 Builders 1 - KB Home 2 - DR Horton 3 - Richmond American 4 - Lennar 5 - Pulte/Del Webb 6 - Beazer 7 - Harmony 8 - Pardee 9 - American West 10 - Dunhill
4 Market History
5 Market History
6 Program Details 2012 Stretch 2008 to 2011 Whole Home Modeled in REMRate HERS 70 or Better Rebate $.30 per kwh No Renewables in Savings 2012 ENERGY STAR Required HERS 60 Stretch Two Tiered Rebates
7 How We Did It Focus on Builders Help Builders Connect with Buyers at Point of Sale Harness Competition Among Builders
8 How We Did It Raters Promote the Program Work Closely With Energy Raters Program Provides a Natural Incentive
9 How We Did It Minimize Participation Barriers Utilize Existing Work Done for ENERGY STAR Maintain Consistency
10 How We Did It Integrated QA/QC Submission requirements On-site Desk review M&V participation
11 Results
12 Results Energy Plus New Homes Captured 42% in 2011
13 2012 Outlook Continue Leveraging Market Features Use ENERGY STAR as the Jumping Point to HERS 60 Collaborate with Gas and Water Utilities 2012 Goals 2000 Homes 4,000,000 kwh Savings 25% Stretch Goal Homes 13 Builder Participants
14 Focusing on Benefits 1. Identify energy efficiency features and advantages. 2. Connect emotional benefits to each feature. 3. Teach proper questions and listening that help salespeople better understand which benefits are important to the homebuyers. 4. Provide logical confirmations of the emotional motivations used by clients in the home buying process. 5. Use role play exercises to improve your ability.
15 Typical Efficiency Measures Improved insulation High efficiency lighting Radiant barrier Control Air Movement Attic cathedralized as conditioned space Efficient HVAC equipment Improved HVAC distribution Air sealing High performance windows
16 Efficiency Benefits Better Comfort Higher Quality Increased Safety Environmental Better Value Security/Stability
17 Benefits Better Comfort Quieter home Fewer drafts Reduced dust Improved indoor air quality Consistent temperatures Better Comfort
18 Benefits Higher Quality Reduced home maintenance Increased durability Easier operation Increased home value
19 Benefits Increased Safety Higher ultra-violet light protection Cleaner air Increased protection from combustion gasses
20 Benefits Environmental Reduced carbon footprint More sustainable Less pollution
21 Benefits Better Value Lower total cost of ownership Upgrading later cost prohibitive Efficiency often subsidized
22 Benefits Security / Stability Lower need for repair Predictable expenses Control energy cost increases
23 Home Buyer s Hot Button Issues Comfort: Thoroughly enjoying their home Safety: Peace of mind Quality: Make their house a home Image: Keeping up with the Joneses Environment: Carbon footprint Lower Bills: Saving now Security: More stable expenses in the future
24 Connecting Emotion to Benefits What benefits of buying and owning an energy efficient home impact the buyer emotionally. Activate the buyer s motivation for efficiency features with emotion.
25 Benefits Review Better Comfort Higher Quality Increased Safety Environmental Better Value Security/Stability
26 Common Emotions Excited - Uninterested Anxious - Indifferent Relaxed - Stressed Confident - Fearful Calm Anger Secure - Vulnerable Joy Sorrow Conscientious - Careless Attraction - Disgust Acceptance Rejection Safe - Dangerous Expectant - Doubt Surprise Expected Carefree - Concerned Content Dissatisfied Proud Ashamed
27 Emotions Better Comfort Quieter home Fewer drafts Reduced dust Improved indoor air quality Consistent temperatures Content Satisfied Relaxed Peaceful Secure
28 Emotions Higher Quality Reduced home maintenance Increased durability Easier operation Increased home value Confident Proud Expectant "I would recommend ENERGY STAR to anyone looking to buy a new home. If this house weren't ENERGY STAR rated, I wouldn't have bought it." David Vidal, Homeowner, Las Vegas, NV
29 Emotions Increased Safety Higher ultra-violet light protection Cleaner air protection from combustion gasses Protection from mold growth Secure Safe Confident Relaxed
30 Emotions Environmental Reduced carbon footprint More sustainable Less pollution Concerned Safe Proud Conscientious
31 Emotions Better Value Lower total cost of ownership Upgrading later cost prohibitive Efficiency often subsidized Confident Secure Safe Proud My biggest selling point for buying an ENERGY STAR home was resale value. I would highly recommend ENERGY STAR to anyone because it will definitely save them money in the long run. Barry Ellison, Homeowner, Vegas, NV
32 Emotions Security / Stability Lower need for repair Predictable expenses Control energy cost increases Confident Carefree Safe Smart Content
33 Asking the Right Questions What questions get a potential homebuyer talking. Connect the homeowner s emotions to the benefits so they are motivated to have the advantages they receive from energy efficient features.
34 Is this your first visit to a (Builder name) neighborhood?
35 Good Questions Better Comfort Quieter home Fewer drafts Reduced dust Improved indoor air quality Consistent temperatures Tell me about how you see using your home? What experiences have you had with comfort issues in previous homes?
36 Good Questions Higher Quality Reduced home maintenance Increased durability Easier operation Increased home value Is there anything about your current home that works particularly well or maybe something that does not? Tell me about how you take care of maintenance in your current home.
37 Good Questions Increased Safety Higher ultra-violet light protection Cleaner air protection from combustion gasses Protection from mold growth In your research so far what have you heard about ENERGY STAR? Tell me about the art you mentioned before?
38 Good Questions Environmental Reduced carbon footprint More sustainable Less pollution What have you heard about the benefits of homes with improved energy efficiency? X Do you like polluting the environment so you can be comfortable?
39 Good Questions Better Value Lower total cost of ownership Upgrading later cost prohibitive Efficiency often subsidized Tell me about your long term plans for your new home? What have you heard about our homes out in the community?
40 Logical Justification Illustrate facts that support how your features benefits a homeowner. Justify the buyers emotional motivations with logical benefits.
41 Logical Justification Better Comfort We like to entertain often and want a house that is accommodating and comfortable. Quieter home Fewer drafts Reduced dust Improved indoor air quality Consistent temperatures ENERGY STAR CFL lights create less heat and save about $6 each year. The 30 lights in this house will pay for your kid s birthday party each year.
42 Logical Justification We don t want to have to worry about too much maintenance. Higher Quality Reduced home maintenance Increased durability Easier operation Increased home value Energy-efficient appliances include quality components surpassing those found in standard appliances. These can result in better performance, fewer mechanical problems, longer equipment life, and in many cases extended warranties.
43 Logical Justification My baby suffers from allergies I don t want to have to worry about poor indoor air quality. Increased Safety Higher ultra-violet light protection Cleaner air protection from combustion gasses Protection from mold growth Indoor air can be many times more polluted than outdoor air, and the average American spends 90 percent of their day inside.
44 Logical Justification Energy efficiency is important to minimize ourimpact on the environment. Environmental Reduced carbon footprint More sustainable Less pollution 16 percent of U.S. greenhouse gas emissions are generated from the energy used in houses nationwide
45 Logical Justification When our children get older, we may consider moving elsewhere. Better Value Lower total cost of ownership Upgrading later cost prohibitive Efficiency often subsidized Energy efficiency features will save you $500 a year on utility bills.
46 Role Playing Making it natural Improves skills Creates team spirit Establishes a process Builds confidence Solidifies your message
47 Thank You Questions? Doug Eddie Steve Hofer
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