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Single Family Builders
The Coset of Closet Upgrades
As a general rule, the cost of closet systems should follow these guidelines.
Standard: no more than .0025% of the selling price of the home
First upgrade: .0035% of the selling price of the home
Second upgrade: .005% of the selling price of the home
Here are some estimates to help you achieve a capture rate of 40 percent or higher. Remember to keep the process simple and easy – offer only two upgrade options.
Home Selling Price Standard First Upgrade Second Upgrade
$150,000 $375 $525 N/A
$250,000 $375 $875 $1250
$400,000 $450 $1400 $2,000
$600,000 $550 $2100 $3,000
Note: These costs do not include builder mark-up.
Most home buyers upgrade the master closet first, pantry second and garage third.
Best Practices for Presenting Storage to Home Buyers
Have your storage supplier train the design center and/or sales staff
– the more they know the better they can sell the upgrades.
Know your audience
– home buyers are mostly female.
The support materials should be easy to use and ready to go and should include upgrade options that are easy to understand.
Home buyers should be able to choose an upgrade within five minutes.
The support materials also should make it easy for the home buyer to visualize the closet
and to see their cost.
Install a product vignette in your design center
so that home buyers can experience the product first hand.
on the most important distinctive features of the storage.
Make sure that all sales people know that closet upgrades are available.
Give storage priority on the selection sheet.
Get options on the contract checklist
Allow home buyers the option of including it in their mortgage
Match home buyer profile to storage solutions
Get product into model home and market/spec homes.
Upgraded closets are a great way to efficiently sell your market homes.
Know the Buyer
Baby Boomers need homes that are accessible – where everything is in its place and is easy to get to. They want to live and play with ease. They want to stay fully engaged with friends and their homes are hubs of activity. How does this translate to storage? Their homes are permanent – they know what they want and they want stability. For a baby boomer, you should specify a melamine closet that is beautiful enough to show off to their frequent visitors and that organizes their busy lives.
Generation X is at an age where they have active families and want to eradicate clutter and chaos. At the same time, they are very tuned into style and design. They want quality and won’t settle for less. For a development built for Generation X, specify an adjustable storage system that gives them the flexibility they need at the same time that it organizes their busy lives.
Those included in Generation Y like lots options, from colors to quality. They want to live in hip, unique and even offbeat spaces. They focus on affordability and want to spend a little to get a lot. Specify an adjustable system that can meet their high demands. The adjustable system can change to fit the latest trend.
Single women are the fastest-growing group of home buyers and buy twice as many homes as single men. Women are concerned about what fits with their lifestyles, which often is taking care of an active family. They like to have several choices and feel like they are getting a bargain. Offer an adjustable system to her, with the option of a melamine upgrade.
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