Bob Toll is an honest man

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optimusprime_IHB

optimusprime_IHB

New member
I got a pretty good laugh reading this little article...HAHAHAHA



<a href="http://www.bloggingstocks.com/2008/08/14/toll-brothers-ceo-talks-about-fake-specials/">http://www.bloggingstocks.com/2008/08/14/toll-brothers-ceo-talks-about-fake-specials/</a>



In an interview on CNBC, Robert Toll, the CEO of leading homebuilder Toll Brothers (NYSE: TOL) demonstrated his lack of respect for consumers: "When we hold specials, which are not really specials, but just some reconfigured incentives to make it look as though something special is being given away . . ."
 
Amazing... I wonder if there are some internal conflicts amongst the execs at TOL where he had every incentive to say such "honest" things. If there weren't any internal conflicts before those statements... I'm sure the execs have them now! ;)
 
This is nothing new with builders Mr Toll just explained it in a bad way. In a tough market there is always and incentive for using the builders lender sometimes the incentive is not tied to the lender. Some builders are real strict and say we are doing this package and take it or leave it. Usually they are not selling. This is just sales 101. When i sell new homes i know the incentive amount and don't play games. I ask straight up what is important to you? What do you want help with, the financing, design center credit, appliances of just off the price and give them the incentive amount up front and let the them figure out how to use it. And of course i always get the people who say well they are giving 10k more next door and i say we can too we just raise the price here by 10k. And sometimes i will say is that all their giving as they need to due to bad location or overpriced homes etc. Sales agents for most of the tracts do a weekly competition report and know what everyone is doing for the most part and are usually all in same ball park as far as bottom line. The builders who are flexible to change prices and compete with other builders are selling homes.
 
I'll give him some credit. He was not real rosy about the market back in 2006. That was more than many CEO's of builders were then.



http://money.cnn.com/2006/08/09/news/companies/toll_brothers/index.htm



"Speculative buyers who spurred demand in 2004 and 2005 are now sellers; builders that built speculative homes must now move their specs; and nervous buyers are canceling contracts for homes already under construction."

Toll said that much of the supply of finished and near-finished product is being marketed using advertised price reductions and increased sales incentives, which in turn is leading many potential buyers to delay their purchase decisions as they wonder about the direction of home prices.
 
Gosh, he actually said that?



I guess the CEO can say stuff others can't.



Or, maybe he has given up hope and feels he can say

anything he wants to say.
 
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