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Eastman Connects Customers through Technology (Builder/Architect Magazine) PDF Print E-mail

Construction is an ancient industry, nearly as old as mankind. Although tools and techniques have evolved, first with the use of steam and then electricity, the building process remains deeply rooted in the past. The hammer, for example, still used on job sites every day, may have first been used more than 2500 years ago. 

Enter Nick Eastman, owner of Eastman Custom Homes. Eastman says that, in terms of company and customer management ,"the construction industry as a whole is fairly primitive." He suggests that in an age where customer relationship management (CRM) has taken center stage, most construction firms lack the tools to effectively coollect information and communicate with clients. Eastman points out that this is usually not the case for major firms or large production-orientated builders,but tends to be true for companies similar to his. Eastman has used his years of high-tech business experience to devise a revolutionary way to connect with his clients. Eastman grew up in College Station, where his father built custom homes part-time for 15 years. Naturally, this meant that the younger Eastman spent plenty of time on the job site doing whatever work needed to be done. His curious nature led him to ask lots of questions, forming a foundation on which he built a deep understanding of the building processes and the reasons behind them. 

Eastman says that although he didn't necessarily develop specific skills, he did come to comprehend the "ups and downs" of the industry and established a strong overall understanding and most of all the confidence needed to enter the industry. This knowledge would pay huge dividends later in life. 

Despite his early construction experience earned while working alongside his father, Eastman was offered a baseball scholarship by Texas A&M University, where he graduated with a biomedical science degree in 1997. After graduation he went to work for Cargill, a privately held $75 billion company. There he specialized in general administrative management for their agriculture business units. Eastman moved regularly, residing in Raleigh, NC, Stockton, CA and Minneapolis during his tenure with the firm. 

In 1999 he moved to Austin and accepted a job with Computer Sciences Corporation (CSC). While at CSC, he began to get the itch to build, which led him to begin working on a new home for himself. Because this was to be his personal dwelling, Eastman says that he took his time and worked meticulously both on the design and material selections. Eastman says that this experience allowed him to further explore his interests while retaining the safety net of a day job. The project also helped him get acquainted with the Austin tradesmen who are critical to the success of any construction firm. 

Although Eastman originally intended to live in teh house, he wound up selling it in 2003, before it was finished. By then, he knew that he was ready to make the jump to full-time construction, so he left CSC and struck out on his own. Eastman offers several reasons for his decision. He has a passion for building that dates back to his preschool days, and seeing the business through his father's eys further reinforced his desire. He also says that the hands-on aspect of construction appeals to him, saying that he has always had a strong "motivation to get out and figure out how to do something." 

Finally, he cites the entrepreneurial spirit that lurks inside every small business owner. Eastman says that he enjoys being responsible for his own decisions, finances and customers. He notes that his experience working in the corporate environment has come in handy, saying that he has used many of the skills that he learned in the corporate trenches. For example, Eastman regularly applies his management, budget and planning knowledge to his own business. 

His time in corporate America also taught him the importance of managing information and communicating it clearly, concisely and promptly. Once Eastman got his company up and running, he began seeking ways to provide his cleints with accurate, realistic and timely information for thier projects. He says that most of his customers are computer saavvy and expect quick responses to thier questions. To meet those requirements, Eastman knew that the best solution was multi-user Internet based application.  He sought out a product that resembled what he was looking for, and then approached the developer about customizing its package to meet his needs. Fortunately, the firm agreed to make the changes and Eastman was on his way. 

The result is a specialized Web-based tool that keeps Eastman and his customers connected. Each client uses a secure login ID to access a Web site tailored for their individual project. There they can view real-time information, including up-to-date expense reports, timelines, allowance reconciliations and even photos. 

In addition, clients can submit and approve change orders and can request price quotes before deciding whether to proceed with a change. 

For his part, Eastman regularly enters updated information such as purchase orders, price quotes, expenses incurred, timeline adjustments, photos and other related documents. The system records each update, which creates a history of all requests and changes. This feature protects both Eastman and his customers by providing an audit trail. "It's a clean, concise way of documenting," he says. 

Because a service provider hosts the system, Eastman doesn't have to worry about maintenance or system downtime. He simply ensures that the information is updated and that his customers are able to access their projects. 

Eastman syas that his systems improves customer satisfaction because they have access to up-to-date information from any device with Internet access. He adds that it also benefits him because he spends less time fielding these requests from the customers. 

After his first house sold in 2003, Eastman began building three or four houses per year. Since then demand for his products has exploded and Eastman Homes now builds 10 to 12 units per year. He says that his current mix includes one or two spec homes a year with the remainder consisting of client-commissioned projects. As he did with his very first project, Eastman still designs every spec home himself and strives to include materials and design elements that set his product apart. 

As an example, he cites an outdoor fireplace that he recently designed for one of his spec homes. The fireplace is situated on a covered porch and acts as a natural gathering place and focal point that ties the 1300-square-foot space together. The design features a hood suspended from the ceiling treatment over a fire pit. The result is a fireplace without walls that affords a spectacular 360-degree view of the fire while protecting it from the elements. 

Eastman says that he is always looking for "different ways to do things." That means incorporating innovative design elements and finding creative uses for materials. Because he follows a design-build methodology, Eastman tends to have better control over the design process, whether he is working on a spec or client home. 

To take advantage of the warm Central Texas climate, Eastman ensures that outdoor living space often plays a prominent role in his homes. He says that his designs incorporate traffic patterns that emphasize access to the great outdoors. These exterior spaces may represent as much as a 30 percent of the total living space and often include such amenities as air conditioned waterproof television cabinets, fireplaces or pits, and of course, outdoor kitchens complete with refrigerators and prep areas 

Many prospective Eastman customers contact him after seeing one of his spec homes. Prospects generally have some idea of what they want in a home, so Eastman coordinates a meeting with them and his architect/designer to begin honing these ideas and designing their dream home. 

Because of his design-build approach, Eastman is closely involved in the process from start to finish, and usually provides plenty of input during the design phase. This greatly benefits both him and his clients, as he can begin setting expectations early and help them set a course to best achieve their goals. 

He can also engage interior and exterior designers if necessary. Eastman says that clients vary widely; some want considerable professional input while others are more comfortable choosing those items for their new home on their own. Either way, this process can be "time-consuming and stressful" for customers, says Eastman. Naturally, they want to ensure that the home they have worked so hard to obtain reflects their personal style when it is complete. 

When setting early expectations, Eastman says that he uses a "broad brush," adding that keeping the project budget, timeline and allowances in line is the most challenging part of the job. Eastman believes that listening to his customers is the best approach, as he learns their individual tastes, desires and requirements to gain an understanding of how to create a home that matches their unique wishes. 

Because these personal touches affect the finish-out, they are a huge factor in the overall cost. However, intimate involvement from the beginning helps mitigate some of the budgeting concerns, since Eastman and his designers can offer alternative materials that still match the client's desires but are more cost effective. 

Eastman strives to be realistic throughout the process and really tries to avoid over committing. He believes that it is far better to offer conservative cost and time estimates then to risk disappointing customers by offering unrealistically aggressive quotes. To that end, Eastman aims to accurately estimate the cost of each project, and says that he is almost always within three to five percent, even with only preliminary discussions and sketches. 

Unknowns abound, of course, and customers often ask for changes. In these cases, the process is the same: offer customers an accurate estimate of cost and effects to the schedule and let them decide how to proceed. Eastman points out that these rules apply to any industry, but they are still sometimes difficult to navigate. 

Eastman says that subcontractors are another variable because builders usually don't have direct control over them. Eastman says that he minimizes this risk by treating his trades fairly and paying them promptly. Although his firm employs only two supervisors, Eastman has a solid group of trades that he has worked with since he embarked on his homebuilding path. 

Although most of his prospects approach him with only an idea, some arrive with a set of plans in hand. In some cases, they have already visited with a builder and are often dissatisfied with the results. Eastman applies the same mixture of patience and realism to these cases with positive results. 

Most of Eastman's clients are middle-aged and have owned three or four houses before approaching him. Eastman says that most of them have a pretty clear idea of what they want from their home, including a general design, material choices and, of course, the budget. Many prospects also bring a rough floor plan to get started. This is often an adaptation of one of Eastman's spec homes, although they may also be plans found on the Internet or taken from a magazine or other sources. No matter what brings a customer to Eastman, his number one goal is providing the best value possible. "From start to finish the approach is based on providing value to my customers," he says. "From trade and material selection to overhead, I really try to keep costs for the customers down." Eastman goes the extra mile to offer his clients the quality they expect for the right price. Eastman says that his work is not necessarily restricted to a specific area or development, but that he tends to work west of Austin, usually between the 620/71 intersection and Georgetown. Most of his clients already own their lots, although a few purchase the land as part of the design process. Eastman says that he carries a low inventory, but will occasionally provide lots for customers. Construction technology has advanced through the ages, but the back office has, in many ways, remained the same. Nick Eastman is blazing the high-tech trail for small builders by offering his clients access to accurate, timely information about their projects. At the same time, he has improved his own work through better efficiency and reporting. The results are clear: with just over three years in business, Eastman is building nearly a dozen homes for satisfied customers every year. That, as information technology cliché-slingers say, is a win-win.

 

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