Success Stories

The Challenge

Evelyn and Tom devised a strategy. They needed to have targeted land positions, change from custom to production building, improve their sales and marketing, devise standardized processes and procedures, use updated technology, and implement continuous training. They also needed to better position themselves in other markets where known national competitors were successful.

The challenge was how to successfully strategize and implement such enormous change, and keep Oster Homes running smoothly throughout the transition.

“We recognized that we couldn’t do this alone, and that we needed help. We had one shot at this, and we had to do it right the first time. So we began looking nationally to seek out, one by one, leading experts throughout the country that would not only complement our team but embrace our vision.”

Evelyn and Tom researched consulting firms and eventually learned about Bob Schultz and his proven track record of new home selling techniques. Evelyn purchased a set of videotapes from Schultz, and after reviewing the tapes she was initially dissatisfied.

“I felt that they were outdated. I made a large investment in those tapes, and were they really meeting today’s market needs? They were referring to the homebuyer of the 90s, and we were in 2000. I felt a little bit taken advantage of,” Evelyn explained.

Evelyn called Schultz, who explained that although his tapes referenced the 90s, the strategies were still applicable. He invited her to meet one of his clients in person to see firsthand the success of another builder who had embraced his techniques. Evelyn was pleased with what she saw and ultimately retained Schultz and his company to help Oster Homes through the transition it needed to make to survive in the changing marketplace.

Schultz brought Oster the systems, processes, and experience the company needed. But, more importantly, he was an ever-present rock and guiding light during the turmoil the company had to endure to become better.

Schultz’s first presentation to the Oster Homes team was The Entire Company Is the Sales Team, a program that addresses how the entire company, from contractor to salesperson, must work together to achieve success, followed by A Dozen Strategies to Boost Your Sales Power Now.

Schultz suggested big changes in the way that Evelyn and Tom ran their company. Among the changes he deemed imperative were being open retail hours and using a planned sales process.

During that first presentation, one salesperson asked Schultz, “Aren’t you concerned that some of the salespeople will quit?” Schultz responded that he was not concerned; in fact, he expected salespeople to quit and was prepared for their departure.

By the end of that first day, Oster’s sales manager resigned.

During the next 60 days, many of the salespeople quit, and by the end of the 60 days, all but one of the original salespeople were gone.

“As the 60th day came about, we rolled out Bob’s Targeted Compensation plan. When we went to get the buy-in of people, they didn’t buy in. They were more motivated with what’s in it for them and who cares what’s in it for the company," she said.

Evelyn and Schultz anticipated that many of the salespeople might not buy into Targeted Compensation, and they were prepared with a backup plan.

“We did pre-interviewing and screening ahead of time and had a game plan. We had replacements ready to go,” Evelyn said.

The new team required training, but that also allowed Oster Homes to train the team to do what was best for the company from day one. The original team saw in their position entitlement; the new team saw opportunity.

Evelyn admits that transition was difficult and chaotic, but sales continued.

“The greatest thing with Bob, he was there every second of the implementation process,” Evelyn explained. “If you can overcome the fear of the impact of change, you can achieve anything.”

With Schultz’s help, Evelyn said, Oster Homes worked its way through the transition. One of the most important things he offered was emotional support.

“Change is not easy and sometimes you second-guess yourself, and you need that person that’s experienced it and gone through it with other organizations to tell you ‘That’s okay, that’s normal, other companies have gone through it,’” Evelyn explained.

In order for change to be effective, Evelyn said, “you must believe in what you are doing and you must do it 150 percent.”

“With the strength and support of Bob Schultz and the New Home Specialist team, Oster homes did not falter,” she said.

Schultz, with the help of facilitator Marilyn McVay, continued to deliver on-site training and consulting, and facilitator Roland Nairnsey met with the Oster team for weekly videoconferences to address challenges, offer coaching and help track Oster’s progress.

 

The Result

Within 30 days of Schultz’s first visit to Oster Homes, Oster achieved a record sales month. By just beginning to operate on retail hours, and exposing its sales team to a real sales process, Oster had begun to see results.

Oster conducted market research, developed land positioning in 11 communities within Lorain County, and created a portfolio of production homes with pre-engineered custom options.

In 2002, sales increased 122 percent from previous years. In 2003, sales were up 52 percent from 2002. Oster experienced a total two-year sales growth of 235 percent.

In 2003, Oster Homes opened the largest master planned community on Lorain County, with more than 400 potential buyers in six hours at its grand opening.

During that year, Oster Homes increased market share and surpassed the first of the nationals that had outperformed Oster in previous years.

By 2004, Oster was the largest local homebuilder in a nine-county region, and Oster was only building in one of those counties.

In 2005, K. Hovnanian acquired Oster Homes.

“I have a tremendous amount of respect for Bob’s motivation, drive and strategies. He is on the top of my list of those people that have made a difference in my life. I am very driven by achievements and feel tremendously fulfilled that we have achieved what some said was an impossible mission – to meet the national competition head on,” Evelyn said.

Lorain County

            2001 Housing Starts by Builder by County*

Builder	Units by Permit	Total Volume	Avg Unit Value by Permit
Ryan Homes	154	$37,256,058	$241,922
Kopf Bldrs	90	$27,469,712	$305,219
Pulte Homes	70	$19,352,647	$276,466
Dale Yost Const	65	$10,270,314	$158,005
Oster Homes	64	$14,184,562	$221,634
Moreland Homes	51	$7,629,676	$149,601
Bob Schmitt Homes	48	$12,230,208	$254,796
Lake Pointe Const	46	$9,950,700	$216,320
Gilfether & Assoc.	44	$7,566,568	$171,967
Schafer Dev	39	$9,324,560	$239,091
Scaletta Dev	37	$8,721,835	$235,725
Perritt Bldg	32	$8,783,137	$274,473
Wm Thomas Homes	27	$5,453,680	$201,988
Aspen Bldrs	27	$4,246,565	$157,280
Wildflower Ltd	27	$3,403,900	$126,070
R L R Const	26	$8,099,643	$311,525
SweetBriar Homes	25	$3,728,600	$149,144
Kimball Hill Homes	23	$7,957,400	$345,974
Stiner & Sons Const	20	$4,479,708	$223,985
Gamellia Const	17	$4,588,000	$269,882

---

Lorain County

            2003 Housing Starts by Builder by County (Year End)*

Builder	Units by Permit	Total Volume	Avg Unit Value by Permit
Ryan Homes	248	$55,279,481	$222,901
Oster Homes	218	$41,694,537	$191,259
Pulte Homes	102	$22,506,553	$220,652
Kopf Bldrs	83	$24,065,652	$289,948
Dale Yost Const	79	$9,987,428	$126,423
Lake Pointe Const	51	$8,640,213	$169,416
Moreland Homes	49	$7,736,373	$157,885
Bob Schmitt Homes	48	$10,478,852	$218,309
Scaletta Dev	48	$8,049,206	$167,692
Gilfether & Assoc.	44	$8,212,383	$186,645
Wm Thomas Homes	44	$7,511,935	$170,726
Newbury Grp/Harvest Homes	38	$6,021,827	$158,469
R L R Const	35	$7,543,724	$215,535
Aspen Bldrs	35	$6,148,464	$175,670
Gamellia Const	32	$9,698,000	$303,063
Kimball Hill Homes	31	$8,875,216	$286,297
Schafer Dev	31	$7,071,555	$228,115
Whitlatch & Co	25	$4,030,583	$161,223
SweetBriar Homes	25	$3,825,100	$153,004
Wagler Homes	24	$5,348,600	$222,858

 

* - Calabrese, Racek & Markos, Inc.