Tapping New Markets
Faced with a slumping housing market and potential staff layoffs, three colleagues at an established custom residential architectural firm decided the logical decision was to launch a new business in the same struggling market. On the surface it might sound like a risky move, but they have a plan.
Stephen Herlong, AIA, Layne Nelson and Jim Henshaw, AIA, launched Flatfish Island Designs in Isle of Palms, S.C., in April this year to tap into the desire most American homeowners have for quality architectural design, even though they might not have the money to design a custom home.
“People see our custom homes in magazines and they call us and ask if they can buy a copy of the plans, but the answer is always ‘No,’” Herlong says. “As a custom design for a particular client, those plans are not for resale and never will be. We’ve never had anything to offer those people. We’ve struggled with the idea of providing services to those looking for good design. As the downturn came, we believed it was a great time to make sure our staff had some work to do so we wouldn’t have to lay people off.”
As the demand grows for good design, Herlong believes architects need to be more involved in home building. “We’re trying
to provide a well-designed product. That to me is how to influence the home building industry — make good design more accessible,” he adds.
For those who might think selling house plans compromises the integrity of their custom design business, Herlong & Associates, Nelson says, “We’re staying busy and providing good design to people who need it. It’s hard to think of that as selling out. We believe it’s OK for everyone to experience good design.”
All three agree the two businesses must remain separate. Flatfish Island Designs has no public connection to the custom residential design business.
“We have a lot of concerns that we’ve thought about for years, and those are how we as a custom high-end residential firm turn around and sell house plans online and not water down the branding we’ve created with Herlong & Associates. How do we explain to our custom clients they’re getting something different than what the Flatfish clients come to us for?” Nelson explains.
The answer is to keep the two businesses separate, Herlong says. The custom business involves a full range of services including a careful analysis of a client’s program, interior architecture and design, selecting a builder, construction administration services, design and more. “Flatfish is a company that sells designs. It’s for a buyer looking for a plan who’s not looking for an architect,” he says.
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