I thought about the equation when a client decides on a construction company.

By seeing and talking to various construction companies in various regions, you can begin to see why a particular construction company is growing or declining.

It has been almost 23 years since I started this job, and based on my work experience and my experience working with many construction companies, I thought again about the criteria I use when purchasing other expensive items, while also considering the perspective of the client.

I think there are many factors, but I think the following equation determines 9% of the cost. However, this does not include cases where there are building conditions. In the case of building conditions, the price is almost entirely determined by the land.

Decisive factors for construction companies:

Recognition + Design and planning skills + Performance + Construction costs + Skills and compatibility of the person in charge + Strength and weakness of competitors

I know that many people place importance on after-sales maintenance. However, when asked about it, there are hardly any companies that respond by saying, "We're not very enthusiastic about it." To be honest, I have also not seen many companies that make a strong appeal for their maintenance in order to sell themselves on that aspect.

Another thing, and this depends on the person, is that middle-aged and older people who work for large companies tend to feel that "I can only feel safe at work at a large company." However, I have deliberately excluded people in their 30s because I feel that the number of people who are concerned about this has decreased significantly in recent years.

The above has been summarized into six elements, but I will explain only the parts that may be difficult to understand.

Awareness can come from the web, advertising, sales, model homes, or anything else, but it primarily refers to the ability to catch a client's eye somehow.

The strength of competition refers to whether there are many or few companies with high total points above within a construction area.

From my experience of meeting many CEOs, I get the impression that the averages in CEOs' minds (ratio of passion direction) are 40% awareness, 5% design and engineering ability, 8% performance, 20% construction costs, 15% compatibility and ability of the person in charge, and 12% strength of competitors. (This is entirely my own opinion... I think the speed of progress in improving performance has been slow because many CEOs don't realize that performance is the easiest area to earn points. The ability and design ability of the person in charge are not easily improved... Also, I ignored the other six items such as business strategy and how to increase repeat customers, and assumed that 6% was distributed across the six items.)

I think most people make their final decision based on the total points of these six elements. However, I think that the weighting of each of the six elements varies from person to person. Once people know about your business, I don't think it's that important beyond recognition, except in terms of a sense of security. Also, there is nothing you can do about the strength of your competitors other than the construction company that can choose where to start your business.

Therefore, the load distribution has a large effect on

"Design and planning ability," "performance," "construction costs," "ability and compatibility of the person in charge"There are four items:

Although the load distribution for these four items differs for each client, the construction company also has its own characteristics and limitations in the load distribution that it can achieve. This is because the areas of expertise are different, and the resources available, such as manpower and budgets, are also significantly different.

It may be natural that companies that are weak in any of these equations will not receive orders. Where in this equation can you most efficiently increase your total points by working on it? I feel that most excellent managers have such a perspective.

Many practitioners are reading this, so if there's anything you think is important, please let us know.