 Hanson Builders, Inc. is clear and confident about its new direction in single-family home construction. Dean Hanson, President, and Don Skelly, Operations Manager, are passionate about their recently implemented philosophy on residential building. The Wow Comes Standard and More Home - Less Money. The entire company is committed to this pledge, and it shows. They even have a website called www.TheWowComesStandard.com.
Dean Hanson has always been around construction; his father, Ken Hanson, was a master craftsman. In 1979 the father-son team started Hanson Builders, Inc., giving them more control over quality and a closer building relationship with their buyers. Hanson Builders constructs homes in the Twin Cities' eastern, central and northern suburbs. The company employs 28 people.
"We have great people with many years of experience, and the client sees it." Hanson notes, "Our company is the most award-winning builder in the Twin Cities. In 16 years of Parade entries, we've never missed winning a Reggie Award. We've won over 30 Reggies."
To succeed in the much publicized downturn in the housing industry, Hanson Builders decided to shift their business  strategy. This is where The Wow Comes Standard and More Home - Less Money come in. Historically, Hanson Builders has been recognized for their highly detailed homes. Now they are focusing on building large, cost efficient homes without skimping on luxury or quality. "We are creating larger, more cost-efficient homes for less money," explains Hanson. "With our new business plan, we create incredible home for less money than people expect."
Hanson Builders does this through a very efficient design-build process, all executed in-house. "The home is designed and drafted right here in our office," explains Hanson. "Our features and designs make people say, 'Wow!' Just walk into one of my homes - you will not be able to keep the word from coming out of your mouth." Hanson credits their in-house designer Mark Englund, who has been with the company since 2001, describing him as a nationally known designer and one of the best in the business.
Skelly states that Hanson Builders' two-story homes are very large - 4,700 to 6,500 total square feet. "Everything we build illustrates our 'Wow Comes Standard,'" states Skelly. He compares the national builders to the local builders, explaining that Hanson Builders fits in between the two. "We have the best of both worlds. We offer a home at an incredible value with great design and high quality materials, but we do it for less," he says. "We are meeting in the middle and finding that's where the buyers are."
So, how does Hanson Builders do this? In short, they streamlined their business and construction process and work directly with many vendors and factories. According to Hanson, they are now operating more efficiently in meeting with the client, designing the home, selecting materials and scheduling construction timelines. After the selections have been chosen with a buyer, a start date can be scheduled in as little as two weeks.
 Hanson Builders also has eliminated the middleman in ordering and purchasing many materials. They have contracted directly with suppliers such as 84 Lumber in Pittsburgh. Hanson Builders also has negotiated appliance packages and lighting packages with great cost savings. From other vendors they have selected a quality-driven range of choices in flooring, carpet, fixtures, tile, cabinets, exterior brick and stone, and the like. The samples are all at Hanson Builders' design studio, so the buyer can select from an aesthetically pleasing range of choices. "We work with the vendor first, selecting a range of exceptional materials," explains Hanson. "We eliminate all of the dated options or options of poor quality, so our buyer is choosing from the best available products. We give them a great choice of styles and materials. A buyer working in our interior design center can choose a complete selection of products for an $800,000 home in one day or less. We can get a better value for fixed items, such as stone, tile, carpet and hardwood. Ultimately, the consumer pays less, is less stressed, and they have amazing selections. These are exactly the kind of materials I would put in my own home."
Hanson Builders is also using value engineering to be more cost effective. By building more efficiently, they can market a home at a lower price. "Today, we are selling a 5,000 square foot home for less than we sold a 3,800 square foot home in 2004," states Hanson.
Skelly brings up a lively debate in the contemporary housing market: large homes vs. small homes. He doesn't believe in the philosophy held by many builders that people do not need or want larger homes. "The truth is people want a big house," said Skelly. "Consumers with families need space. No one has ever said to me: 'I'd like that house - just smaller.' We are building what people want and doing it for less. We are answering the demand." Unlike many other builders, Hanson Builders has a constant supply of completed homes that consumers can buy. In a downturn market, they sold 15 homes in October 2006.
One of Hanson Builders' development projects is a master-planned community, The Lakes of Radisson, in Blaine, MN. The community has followed the successful model of cluster homes, open space and recreational amenities like parks, lakes and trails. The 1,000-acre former sod farm features 180 acres of man made lakes and when complete, will have 4,000 homes which will range in price from the $200,000s to $2 million. To date about 1,200 home have been built. The Lakes has planted 45,000 trees and shrubs and is about five minutes from Medtronic's new headquarters.
 Hanson calls the community "unique in the entire state." He emphasizes the convenient location of the development and the excitement of a master-planned community. "Our new line of homes is doing great," he says. "'The Wow Come Standard, More Home - Less Money' is obvious. Our 4,700 to 6,500 square foot homes range from the $500,000s to $1.2 million," he estimates. "People will not believe what they can buy for $700,000." He is confident that Hanson Builders' new focus on more for less will be successful.
Hanson summarizes the shift in his company's business strategy. "In the end, what we are doing is building a better home through value engineering that looks unbelievable," said Hanson. Wow!
For more information about Hanson Builders call (651)215-9999 or visit their website:www.TheWowComesStandard.com. |
