business model

• Platinum Homes was formed in 2003.
• Platinum Homes operates a licensee model with representation in most regions of New Zealand. 
• Each licensee is an independent business entity with licence to trade under the Platinum Homes brand and with access to the IP, business systems and procurement channels developed by the brand owner. 
• The brand owner is Platinum Homes (NZ) Ltd. 
• Platinum Homes (NZ) Ltd is a private company lead by a CEO (Shaun Riley), reporting to Board comprising of shareholders and key managers. 

areas available

Platinum Homes is currently seeking to appoint licensees in the following regions:

• North Shore / West Auckland: catchment is approx. 437,000
• Top of the South Island (Nelson, Marlborough, Tasman, West Coast): catchment is approx. 179,000
• Deep South (Southland, Queenstown Lakes, Central Otago, Gore): catchment is approx. 152,500

Core Target Market:

• Men / Women aged 35+ (cap would be near pre-retirement 60-65+).
• Income parameters: anyone with access to finance can build a home. It’s not really much different to buying existing real estate. If you can buy a slightly higher than average value home in your area – chances are you can build for a similar amount.
• Average purchase $: $432,000 – which is 28% higher than the average purchase price for the top 10 group home builders (direct competitors).
• Average purchase size: 214m2 – which is 17% higher than the average purchase size for the top 10 group home builders (direct competitors).

Current Total Market Size:

• Approximately 15,000 homes per year nationwide.

Current Market Share / Successes:

• Platinum Homes is currently the number 5  top 10 group home builders by $ value – within the areas of operation and within price bracket of $300K+
• Platinum Homes sold (approximately) $100M worth of new homes in the 2017 financial year – (approximately) 48,000 square meters of new homes.
• Platinum Homes has built more than $800M worth of new homes since 2003 (more than 2,000 homes).
• Platinum Homes has experienced positive sales growth year-on-year, every year since 2012.
• Sales growth has almost tripled in five years from 2012 to 2016.

PRODUCT:

• Primary Product Offer: Single level homes with a build value $300K+ 
• Secondary Product Offer A: Single level homes with a build value under $300K
• Secondary Product Offer B: Multi-level Homes (all values)
• Secondary Product Offer C: Special projects that sit outside core market of the group (PT78)

Products are primarily marketed for sale as design & building (D&B) and / or house & land (H&L):

Design and Build (D&B): 

Through this channel, the home owner may or may not own a site / lot at the time of enquiry. Platinum Homes will work with the home owner to select and design a home to suit their needs. This usually starts by selecting (in consultation with a sales consultant) one of the 70+ base designs, all of which can then be re-tailored or changed to suit the customer’s requirements. Platinum Homes can often help the customer find a site.

House & Land packages (H&L):

This is refers to a specific site / lot where Platinum Homes has a ‘option’ to sell that site / lot with a pre-determined home design to be built once the package is sold. This is an ‘easy’ way to buy new where the customer does not have to make as many decisions as D&B as the basic home is already designed – they choose some of the finishes (although they can make changes / alterations if necessary). H&L offer includes lots within a subdivision where Platinum Homes has the right to build.

Exemptions:

Platinum Homes does not ‘spec’ build homes as part of the standard business model. Spec building is where the building company pre-builds the home with the intention to sell (as existing real estate). This is considered to be a high-risk business model requiring significant capital.

MARKETING:

• Platinum Homes (NZ) operates a Group Marketing Fund (GMF) which invests more than $800K annually in support of the brand.
• Platinum Homes website attracts more than 16,000 unique users per month
• Statistically, more than half of Platinum Homes entire core target market makes an enquiries with Platinum Homes by way of either a showhome visit or phone/online enquiry.

Unique Selling Points (USPs):

• Value: Platinum Homes operates the Best Value Promise (BVP) – we know from collated third party statistics, that Platinum Homes offers one of the best price-to-size value offers available from the top 10 group home building companies.
• Quality: Platinum Homes build homes that exceed the quality of comparative group housing companies – this is reflected in the building method, extra attention to detail and the materials used.
• Design: Platinum Homes are in the process of updating their plans range and will focussing increasingly on marketing the design attributes of the product. 
• Stability: Platinum Homes is one of New Zealand’s longer established new home companies. Platinum also operates an assurance system that uses guarantees provided by third parties (Homefirst Guarantee). 

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