Simply Ryan is a new line of entry-level homes complete with a “simple buying process” to lure renters to home ownership. Depending on region, prices are “from the upper $100s” and “from the mid $200s”.
If you are not familiar, Ryan Homes, a member of the NVR family (NVR, Inc.), is one of the largest home builders in the United States. In 2019, NVR generated $7.2 billion in revenue and settled 19,668 new construction housing units. The average settlement price was $367,100 per housing unit. The company’s gross margins are consistently in the 19% – 20% range. We understand the Simply Ryan product line has higher gross margins, offsetting their lower selling price.
Simplifying The Home Buying Experience
Speaking with a former sales consultant, we have learned about an important transformation the company has recently undergone to eliminate “decision paralysis”. Ryan Homes used to have tons of options for the homebuyer to choose from. With Simply Ryan, you’re limited to a just few choices of finishes. To seal the deal and limit cash to close, all appliances are included with the house.
Key Takeaway: Confront Decision Paralysis, Actively Simplify
Entropy, the gradual decline into disorder is very real and very bad for business. Accordingly, we need to be mindful of how our product and service offerings become overwhelming and confusing and actively work against this force of nature. The surest way to lose a customer is to give them too many options. When faced with too many options, most consumers make no option at all. There’s simply too much stress and anxiety on the part of the consumer that they may be making the wrong decision, so their decision ends up being to not take action. If they do make a decision, there’s a high probability they will experience some sort of resentment or concern that they made the wrong decision. This can lead to post-sale cancellations, returns, poor customer satisfaction ratings and low net promoter scores.
Take a page from the Simply Ryan playbook and keep it simple. Your customers, employees and shareholders will thank you.