At that time, Mr. Eakkarat was one of the contractors from 3 regions who has shared his experience about construction managment to Builk members on the stage with Saktongpoon from Lamphun and Cornerstone from Songkhla. For the next event, those who would like to share their experience in the construction circle, sign up for member to receive news of BUILK UP 2016 here.
How could we not be surprised with a method to collect money before construction up to 50%? Normally, the amount of advance before the work starts is only about 10% of net value. When Mr. Eakkarat gave us opportunity to visit the residence of Hua Hin, we did not hesitate to ask for reason why he has set advance as 50%.
“We are pleased to say there are many people who come to ask and follow this. If they make it, then we congratulate them.”
Customers commend Smart House
Suppagorn Real Estate Service Co., Ltd. is a real estate development company which uses Smart House brand to build residence in Hua Hin region by dividing land into metrics and gradually build house based on incoming order. Most of the customers are foreigners.
Smart House brand has been creating credibility for more than ten years. On the last September, the Smart House Valley project won award from 10th Thailand Property Awards time which confirms its quality.
“All the past projects we have done use the name Smart House to reflect that we’ve built credibility. Most of foreigners who have built houses in Hua Hin will know this name. We have a reputation for quality work and punctual delivery. Customers must be convinced first or else they wouldn’t pay. If we made a contract then you do not have to be afraid. If we contract for 6 months, then you will definitely get a house within 6 months. We never deliver work late. I believe that work must be done when it is suppose to be done unless it’s about the money which you should not make us wait. Pay advance of 50% then we will be able to walk and see the reference we got awarded for good quality together.”
Talking about this reminds me of building brand of construction business which we’ve been talking about with the executive from Cornerstone Construction Co., Ltd. Click here to read about construction business with brand.
Listen to customers
When foreigners are interested in buying house in Hua Hin, they will contact broker to find out budget with need. For example, a customer wants 2 bedrooms and 3 bathrooms. “When customers want to contact with broker, there will be a lot of houses to choose from. Will customer choose our project? First, it is depended on broker’s support. Second, can we close the sale and finally is about quality and insight in product with the need of customers.”“
Mr. Eakkarat invited us on trip to Smart House Village 1 , the very first project under then name of Smart House. As we stepped into the entrance, we could clearly feel serenity as the place was located about 10 km away from Hua Hin town, yet close enough to ride a motorcycle to the downtown. “Someone asked me why we’ve chose to build here. Thais think it’s located too far but actually for foreigners especially westerners, they think it’s still near the street. These people want peace and avoid noise, more houses in the deepest road would be sold fast and houses near the entrance road would be difficult to sell. Then we try to sell those houses to Thai people.”
After working on several projects after this one, we could see a gradual change. “Improving from feedback of customers such as canceling swimming pool, enlarging gym or making garden at the center but keeping a design of their unique house gate.”
We observed project until the end of Smart House Valley project which the houses were obviously larger. Mr Eakkarat continued to talk about the reason behind these changes in the design.
“We gradually adjusted the design based on the feedback of our customers. We separated the owner’s space and guest’s with a common room. Afterward, customer wanted to extend the common room, increase floor to ceiling to 3m so the room is bright, mellow and relaxing. Some fences are adjusted higher because foreigners (westerners) like to swim naked. Every house cannot see each other and they are kept completely private. The customer’s favourite is this room; it is a toilet with air condition, glass sunroof which provide relaxing bathing.” Suddenly we looked up to the toilet, we could not stop exclaiming ‘Wow!’.
“Toilet is very important.” Mr. Eakkarat continued to explain when we were astonished by the toilet. “They wanted a better designed of a classy toilet, like for this one, I have hired design architect from Bangkok and we adjusted and improved it until the result come out like this.”
“Lately, the works’ values were constantly increased; 8 million became 9 million and it kept increasing until it became 10 million. It is probably because salesperson is doing his job professionally.”
Awesome builder shakes hand with awesome saler
Photo from TCH Hua Hin
“I didn’t have payroll salesperson but partners, we buy and share the land. When someone wanted to buy they can contact to one of the partners.” Then Mr. Eakkarat talked about Grahame Beecham to us. “Mr. Grahame Beecham bought house with us 10 years ago. He was a house salesperson in another company. I went to ask for advice about how the rival companies sale and asked about the designs, then he explained thoroughly. I started to think that I should build a new type of house with new specification and standard but I realized that I didn’t have a proficient salesperson. He told me that he would help me. Then I started to have a hope and went to survey rival companies. We had to do better which is that we had to make the best of everything and it would make everything cheaper as well.”
When we asked Mr. Eakkarat how he chose salesperson, his answer was “We must have a consenting salesperson who has a good heart. We give them first and they return. Some salespeople won’t give but just take and this doesn’t build trust deeply enough to others. With such people, it’s not about give and return.” Mr. Grahame, partner and salesperson said “He is the best seller and I am the best contractor, together we become three not two.”
Contractors, team workers, and suppliers come together to create a quality work
The work quality is mostly depends on contractor and Mr Eakkarat has also talked about some contractors. “We didn’t try to find the lower price but we focused on working with those we feel pleased which we can work as a family. It ensures that the contractors are definitely paid. Before when managing was very difficult, we had to gradually see how much exactly the technicians withdrew and did they record it correctly. It took about 15 days to calculate and transfer the payment which often delayed the project. When Builk came over, we smiled.”Mr. Eakkarat talked about purchase report by supplier in BUILK Cost Control which is used to show the summary of total amount of payment made. The system will calculate automatically to see current total amount on the website at any time.
There are few people in a work team here but we emphasize quality. Mr. Eakkarat chose high salary rate by team management principles, which are “We need to make team to know what they are doing, what kind of battle they are in, everyone is on the same page, we always know the entire plan, and the destination is everyone’s success.”
Everyone at purchasing department and worksite has a right to know project budget. When the work is received, part of the budget will be cut into company income. The remaining is the construction budget and bonus. “I look into project cost report and update to everyone monthly like what and how much is left. And when the work is completed, the remaining is pocket money. This time, everyone is so strict and what is expensive will not be used.” the team leader said while laughing.
Mr. Eakkarat mentioned about BUILK Cost Control. “Thanks to Builk to make us know this. It helps to see the cost we’ve planned when we view report and clearly shows what is lack of. If there wouldn’t be any remaining in the end, we try to find a cause of a problem. We may have gone wrong with commission or fee that affects a lot to the company. The solution may be increasing selling price; some work cost 4.5 million, we can’t set price at 4 million unless we cheat. Now we can look at things wider because we have stable Cost Control.”
Other than contractors and workteam, suppliers also contribute to the success of the project. 10 rules to create contracting business worth hundred millions “Set partnership. Smart House has a party at the end of year for every two year. We invite shops that we trade with to discuss things. For example, we trade like this for this year and we should have a project plan which should come up like this for next year and so on to know what we have to buy.”
Interviewed on 26th October, 2015
Reading up to this point, what do you think that makes Suphachai Real Estate Service available to keep money very high before the construction? It may be because of the strong brand or team’s quality of construction work, or from the product development to answer customers need, good sale or everything mentioned above.
If you want to give customers confidence to make them pay enough amount of initial money, where would you start from?
About Builk team
Builk team is a team which everyone in our Builk wants to create a quality community for contractors in Southeast Asia. We help construction business to reduce cost, save time by creating cost control program which contractors can use for free. Other than program, we also make others what we can think of for contractors to have better life.