The highest of the high-end

Jim Huston

Many of my clients service what I refer to as the “ultra-high-end” residential market. It includes the second (third, fourth, fifth…) home market as well. These residential clients often own numerous homes, not only around the country, but also around the world. One of my landscape installation clients was finishing up a million-dollar project when an armored vehicle pulled up to the residence. In it was his client’s wine collection. I don’t know about you but my wine collection doesn’t come in an armored car. Often in comes in a box (with a handle on top).

This market is different in many aspects. It offers unique opportunities as well as unique risks and challenges. While this segment of the market took a severe financial beating in 2008 and 2009, in today’s economy, this is where the money is.
 

Who is it? This market is comprised of the world’s who’s who – the so-called “shakers and movers.” Old money, new money, it doesn’t matter. If you’ve got it, you’re in. If not, you’re not.

These individuals generally have a very unique perspective. They’ve quite often done it all, experienced it all, seen it all… This pervasive life experience often exposes a metaphysical void in the life of these individuals. It can manifest itself in the form of a longing. “Is this all there is?” Or, “What else is out there that I haven’t experienced?” Or perhaps, “How can I experience peace, tranquility, serenity? How can I experience more beauty, more awe and more wonder-lust?”

Where is it? Geographically, you will often find this client inhabiting particular locations – near lakes, close to ski and golf resorts, along the Kenai River in Alaska, Beverly Hills, Malibu … the list is almost endless. I have clients in all of these lovely places. But you have to realize that the residential customer living in these climates is as uncommon as the surrounding geography.

What is it looking for? To truly understand this market, and this individual, you must realize that often they are seeking something very different and often misunderstood. This client is often seeking a quality of life, an existential state that, in its essence, is a border-line spiritual experience.

Too often the contractor focuses upon the plants, trees, mortar, bricks and soil, but misses what their client is looking for – a quality of life experience. One client who specializes in this market put it this way, “Most landscapers take a pile of rocks, plants and trees from their yard and put it in their client’s yard.” They miss their client’s “pain-point” all together.

To help you understand this individual, you should read Michael Gelb’s book “How to Think Like Leonardo da Vinci.” It’s a great read and you should keep extra copies on hand to give to your prospective clients.
 

What is so unique? Apart from wealth, my clients have come to realize and understand some of the traits held in common by the ultra-high-end client. Here are a few.

• Once burned, twice cautious: Having recovered from the stock market crash of 2008 and 2009, this client is once again spending money but is looking for quality as much as a good deal.
   
• Sophisticated: This client is often market-wise and financially savvy. Know your numbers and be a straight-shooter with this individual. Do not attempt to pull a fast one on this client. You’ll get burned and your reputation will suffer.
   
• Project size: Jobs are generally much smaller than they were four to five years ago. However, the margins on them are often higher.
   
• Local vs. the ultra-high-end market: Contractors must realize that they may be servicing two different markets. The expectations and pricing for the ultra-high-end customer dramatically differs from that of the local one. Initially, my clients often do not grasp this and under-price their work for the upper market.
   
• Service oriented: The upper-end client demands excellent service. You must provide it.
   
• Tough love: My clients provide excellent service to these clients but will not tolerate disrespect. They often fire obnoxious clients.
  
  
• Market quality of life: As I said earlier, this client is looking for a certain quality of life. You need to help them find that quality of life but with the appropriate pricing.

Conclusion. Many of my clients around the country service the ultra-high-end residential market. It provides an unparalleled opportunity for the contractor who understands this customer and is prepared to service them.

This is a bright spot in today’s economy. However, the contractor has to understand what this client wants. They are seeking a quality of life experience.

If you can meet their expectations and gain their trust, the purse strings often open up and you’ll have a lifelong customer.

If you can’t gain the trust and meet the expectations of this client, you’re going to be in for a very rough ride and you should avoid this market until you are prepared to do so.