“I don't think that we save any money [under the new programs], but we save time and increase our revenues,” says Olsen.

“Reducing complexity is saving money,” says Minnix. “Simplifying the process makes it easier to sell upgrades.”

And this leads to more revenue, as Cambridge Homes found out. As a result of the prepackaged appliance program it set up, sales of appliances jumped. Because the appliances are discretionary and not part of the house, buyers typically opted to buy them elsewhere. Instead of allowing potential revenue to waltz out the door, Cambridge's streamlined options program captured sales that likely would have been lost to a retail outlet.

Oldenhoff also says simplified selections can help builders manage their design spaces and even reduce the size and increase the efficiency of the overall home building process. “Standardization allows the selection process to flow smoother, so getting the products will be easier, and builders will reduce their lead times,” he says.

In addition to all the other benefits, prepacked programs cut down on mistakes in the field, and this is perhaps the most crucial benefit and the one thing builders can identify with, says Olsen.

“The trades [in the field] understand things better, and that increases the efficiency of building a house,” he explains.

Prepackaging options might seem like a surefire way to improve your efficiency and your bottom line, but you still have to put together a good presentation.

“You can't just package your options and leave it at that,” says Frank at Cambridge Homes. “You need to show the pieces in the models and the showroom.”

You also need to offer more than just the packages, she cautions.

“You need to expand on the packages and include other things like faucets and flooring.”

Investigator's Notebook

The Case: Inefficient options and upgrades systems that are complicated, hard to manage, and leave room for mistakes in the field.
The Investigation: Find out how to simplify the process for the builder and the buyer.
The Evidence: Prepackaged options in a tiered good, better, best configuration.
The Verdict: Bundling options increased revenue, reduced complexity, sped up the selection process, and eliminated mistakes in the field. It also allowed for smaller design centers, easier-to-sell upgrades, and smaller sales centers that require less staff and are easier to manage.