Market Intelligence Services Help Guide Broadmead to Full Census and a Successful Expansion
In 2014, with its census having dropped to about 85%, Broadmead engaged Love & Company to do a strategic opportunities analysis in which we evaluated all facets of the community relative to its competitors, including independent living residences, amenities, pricing, contracts, health care and more. The results of the analysis showed that Broadmead had the most expensive contract offering, while its competitors offered consistently better residences and amenities. This resulted in a significant mismatch of the community’s value proposition relative to the competition, which in turn was impacting census.
When faced with such a mismatch, an organization has two basic directions it can take: cut pricing to bring it in line with the offering, or enhance the offering to bring it in line with the pricing. We recommended the latter.
After we led a series of board education sessions, Broadmead began a master planning effort with the goal of significantly reinventing the community’s health care, fitness and wellness, and independent living offerings. An architect (RLPS) was engaged to complete the master plan, and Love & Company mapped out residence types, sizes and pricing for a 52-home expansion of independent living. RLPS then developed architectural plans for the expansion and renovations, and Broadmead, Love & Company, RLPS and other project team members fine-tuned the plans until the project met the organization’s financial objectives.
While the master plan was in development, Broadmead hired a highly experienced vice president of marketing and sales. Under her leadership, supplemented by Love & Company’s sales training and coaching services, Broadmead rebuilt occupancy of the existing residences, reaching 100% occupied and reserved in 2016. And when the 52 new residences were ready to begin taking 10% deposits in early 2018, Broadmead’s sales team sold 92% of them in only four months, dramatically exceeding the project’s sales timeline. The new residences and several new amenity areas are scheduled to be completed in 2020.