Home builder rethinks business model in the face of changing market

7 May 2018 -- Posted by : Tristan_Kirkham

For almost 60 years Don Russell Homes have been showcasing their award winning product to West Australian homebuyers through impeccably styled display homes.

Founded in 1960 multi award winning builder Don Russell Homes, has recently decided to close its two remaining display homes. The Grantham display in the Seven Hills village Dianella, and the Westhampton display in Beaumaris Beach Iluka both closed their doors two weeks ago.

After contacting head office of Don Russell homes, the office has confirmed that it will focus on investment properties and not third party building.

“We are seeing more and more home builders adjusting and adapting business models to keep pace with shifting trends and changing markets within the building industry.”

“NHBB sees this as a positive move for brands as it gives builders the ability to focus on the best products for both the builder and the market. NHBB deals with many builders who have honed their conventional business model to become more of a hybrid building company, thereby reducing the need for display home programs.”

“Some builders like Don Russell homes are moving away from the display home model altogether, freeing up capital and lowering overheads by reducing marketing budgets and front end sales staff.”

“It’s a trend we expect to see more of as home building companies adapt to changes within the industry.” said NHBB Managing Director, Tristan Kirkham.

 

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