Higher performing builds is becoming more fashionable in Australia, but overseas, it's so normal it's often not even mentioned because the market expects it. Changing how your company does things now, will help position it for a future that is more environmentally conscious.
How to sell the additional costs of going green:
Prove The Financial Return
There's no question about it - a home or any build that is energy efficient offers financial benefits. Yes, like solar panels, it takes some time to cover the initial outlay, but there's more to it than that:
Show The Market You're A Forward-Thinker, and Strengthen Your Business Reputation
Jerry Yudelson explains in his 2006 book, "Marketing Green Buildings" that it's actually lower risk to build green. It's because it's forward-thinking, especially if buildings become 'green certified' in the future. Energy efficiency, solar energy and water conservation will all be expectations of the future, if now legal requirements, and the companies that are shifting towards this are not only helping the planet but securing their future.
In the same book, Yudelson covers an interview with a real estate development manager that explains:
"We believe many sustainable strategies will in fact distinguish us in our market and make us more competitive. For instance, we believe strategies that conserve energy and reduce water consumption will be attractive to tenants in a competitive...market".
If you check out what's happened since that interview 18 years ago, this approach has defined their brand position in the marketplace. The Volcan website reads: 'Invested in the Future. We design and deliver imaginative places that propel human progress.' That's kinda' appealing to investors and homeowners alike, right?
In 2013, published research on Finland's selling environment, environmental characteristics were becoming less of a selling point, and more of an expectation. That was 11 years ago. Many say Australia is likely to go the same way - eventually. Builders that consider that now are not just helping the environment, they're future proofing their business. Energy rating changes in NSW is just one way the building requirements are shifting, but market expectations do tend to move faster than regulation.
Strong brands often command higher prices purely based on a better reputation.
Avoid Green Washing—or You'll Lose Trust
Marketing may be traditionally a function of a capitalist world, but the public are now demanding it transforms into an engine that demands a better world. (Kogan, 2023). As a part of this shift, the public have developed quite the nose for 'green washing'. This has become so important, that unless your business activities and branding, is in sync, it could be dubbed as green washing.
Some scientists even say people are turning away from companies that strive for 'infinite growth'.
Balance your commercial, social and environmental goals to build a trusted brand.
Financial performance is critical to the future but operate in a way that it secures the future of your business.
Focus on Innovation
innovation is key to staying ahead in competitive markets. Energy-efficient appliances and smart home technologies not only reduce environmental impact but these also tend to be the latest and greatest products available. Using these also positions your company as an innovative leader. Smart home technology that helps reduce utility costs for homeowners adds convince and ease, both of which are easy selling propositions. For example, we all could go pick up Uber eats, but having it delivered is more convenient, right? Convenience is often a pioneer to innovation — just as sustainability currently is.
Save Water
Water may currently be a liquid, but climate change scientists predict that at some point it could be a value proposition. As climate change leads to an increase in drought prone regions, water conservation means in the home helps assure homeowners of their own supply, as well as lessen the strain on local water supplies.
Healthy Air
Many homeowners aren't aware that poor air quality can lead to health issues like fatigue and respiratory problems. Adequate ventilation systems low-VOC paints and finishes and air purification systems will support quality of life—that means fewer sick days and if you improved productivity. Highlighting these benefits during a sales pitch not only demonstrates a commitment to the health hand comfort of potential buyers but could also position the property as more valuable long term.
Higher Performance Build = Better Builder
Those that adopt practices that equate to higher performance builds are taking on building practices that extend beyond regulation. Doing more than you're 'supposed to' is what sets these builds and builders apart in the marketplace. People are willing to pay more for quality. Strong brands often command higher prices purely based on a better reputation. After all, strong reputations equate to perceived risk reduction.
Embracing green building practices isn't just about the environment—it's about future-proofing your business to meet the expectations of consumers. Shift your business now, and you'll begin to position your company as a leader in the sector and attract discerning homeowners who are looking for exactly that.
You may also be interested in: Building Green: How sustainable practices can facilitate trust and attract buyers.
Need help identifying which platforms to maximise to amplify your reputation? Contact me.
