Lumber Prices: Why Our Prices are Stable As Our Competitors’ Rises
September 1, 2020
The increase in lumber prices drastically affected the home building industry. It’s forced many builders to increase home prices to account for the material increase, not Classic Homes. We safeguard your pricing with our processes and procedures. And we strive to be the last company to raise prices. Here are three ways we do that.
1) Debt Free Since 1983
What does this have to do with lumber prices? Builders know they are susceptible to economic cycles. When times are bad, builders with debt go out of business – often leaving bad debt and half-built homes in their wake. As a debt-free company, we weather tough times and keep our promises to customers, no matter what is happening in the industry.
With lumber prices on the rise, we are free of constraints placed upon us by the banks. They are not breathing down our necks, demanding we raise our prices. We don’t have interest payments we have to make. Through proper money management, we avoid any debt altogether. Learn more about our values on our about page.
Even with lumber prices, as a debt-free company, we are the ones who decide what happens with our money.
2) Positive Relationship with Our Subcontractors
Relationships with our subcontractors are of the utmost importance because building your home is truly a partnership. We pay our subcontractors weekly and have an open line of communication, which helps to build trust. This process has worked well. It helps us retain some of the best subcontractors in the industry for over thirty years.
As a result, we still stay on top of paying our subcontractors, even when lumber prices rise. We give you the best prices because of our stable relationships and mutual trust with vendors.
3) Buy High Quality Items in Bulk
Purchasing a few higher quality items in large quantities, as opposed to many different ones at various times, saves money in the long run. Instead of buying materials here and there while building your home, we make fewer purchases of higher-quality materials. As a result: Reducing the delivery time and speeding up the process of building your home as well.
In regards to lumber prices buying in bulk means we have what we need to build your home. We do not wait until the day of the snowstorm to run out and buy our bread and milk. Our team prepares for economic challenges well in advance so we can always give you a beautiful, well-built home at the best possible price.
We buy high-quality items in bulk to prepare for economic challenges like lumber price raises.
Classic is Here to Stay, Despite Lumber Prices
Our goal at Classic Homes is to keep our home prices as low as possible, for as long as possible, to ensure we fairly price your new home. We do this by managing our money well so we can operate debt-free. And by building solid relationships with our contractors; and buying quality items in bulk. All these practices give us a solid foundation. Meaning: you construct the home of your dreams without paying any hefty prices.
We have seen builders come and go with every economic boom and bust. They close down when the economy is no longer in their favor. But we are here to stay!
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This post was written by Classic Homes
