licence holder pres_ v1

Latitude HomesLicence HolderProposition

The History of Latitude Homes

Marc & Kelly Hunter – founders of Latitude Homes

Experience from A1 Homes


New Housing Ranking January 2002 – December 2002

Builder

Fletcher ResidentialG J Gardner HomesJennian HomesGolden HomesStonewood HomesUniversal Homes Horncastle Homes LtdVersatile/TotalspanDowner EDIAkita/Format

A1 Homes

Rank

12345678910

110



Builder

G J Gardner HomesGolden HomesJennian HomesFletcher ResidentialVersatile/TotalspanHorncastle Homes LtdStonewood HomesDavid Reid Homes LtdSignature HomesDirect/Legacy

A1 Homes

Rank

12345678910

42 (up 68)



Builder

G J Gardner HomesGolden HomesJennian HomesFletcher ResidentialVersatile/TotalspanHorncastle Homes LtdGeneration Dev.David Reid Homes LtdStonewood HomesSunshine Homes

A1 Homes

Rank

12345678910

30 (up 12)



Builder

G J Gardner HomesGolden HomesJennian HomesFletcher ResidentialVersatile/TotalspanStonewood HomesHorncastle Homes LtdSignature HomesUniversal HomesDavid Reid Homes Ltd

A1 Homes

Rank

12345678910

15 (up 15)



Builder

G J Gardner HomesJennian HomesGolden HomesFletcher ResidentialVersatile/TotalspanA1 HomesDavid Reid Homes LtdSignature HomesHorncastle Homes LtdSovereign Homes

Rank

123456 (up 9)78910


New Housing Ranking January 2007 – September 2007

Builder

G J Gardner HomesGolden HomesJennian HomesA1 Homes Versatile/TotalspanFletcher ResidentialStonewood HomesGeneration Dev.Ryman HealthcareDavid Reid Homes Ltd

Rank

1234 (up 2)5678910


New Housing Ranking Summary

Builder

G J Gardner HomesGolden HomesJennian HomesA1 HomesVersatile/TotalspanFletcher ResidentialStonewood HomesGeneration Dev.Ryman HealthcareDavid Reid Homes Ltd

A1 Homes moved up from 110th in 2002 to 4th in 2007None of the other top 10 companies have had such successFigures don’t include kitset numbers

Totals

808623466309290229204199191190

The Latitude Homes Philosophy

Compass – icon

Integrity and providing direction

Principal belief is that everybody should be able to

afford their own home

Purpose is to help people gain security through home

ownership

The Latitude Homes Values

We want to work with people whose values are compatible with what we hold to be important.

Our company’s values include: Unconditional customer satisfaction Unbeatable value for money Homes built on time We do what we say Customer education & demystification of the building process

Licence Holder vs Franchise Holder

Own your own business yet remain within the Latitude Homes community

Established network for problem sharing and brainstorming

Access to likeminded entrepreneurs for generating ideas and solutions

Take advantage of Latitude Homes systems, procedures and guidelines

Ongoing training and support from Head Office

Initial Revenue will begenerated by selling

Kitset homes - As the business grows and experience in the industry

increases, revenue can be generated by expanding into other building solutions:

Shell Only homes Transportable Homes Full Build homes

- Positive cashflow business

Tools provided to the Licence Holder include - Product An expanding range of contemporary house designs

Large selection of Kitset plans in NZ

Pre-negotiated bulk discounts on building supplies

Build time system on full build contracts

Established costing structure

Opportunity to become a ‘Registered Master Builder’

in due course

Tools provided to the Licence Holder include - Systems Tailormade Customer Relationship Management system

designed and owned by Latitude Homes Project Management system designed specifically for the

building industry Accounting system designed specifically for the building

industry Ongoing training and support from Latitude Homes Commitment to one on one support from the Latitude Homes

Licence Holder General Manager Colleague support from within the Latitude Homes network of

Licence Holders Business mentoring throughout the life cycle of your Latitude

Homes investment

Tools provided to the Licence Holder include - Marketing A strong brand with national presence Clear and consistent branding Education resources for the customer

- including First Home Builders Guide Individual Floorplan sheets House Plan brochures 24 hour, 7 day a week Sales Contact Centre

- using nationwide 0800 phone number Combination of nationwide and localized advertising

- responses are monitored and media placement adjusted where needed

Lead generation campaigns - using all forms of media

Sales generation campaigns to customer database

Tools provided to the Licence Holder include - Marketing cont.

Website- continual search Engine Optimisation- database capture

Nationwide database- existing segmented database- set up to enable segmentation for regions, Build Time indications- continually growing

Training

Individually tailored to your industry and business experience

A minimum of 1 week in Auckland meeting Latitude Homes Head Office staff, Marketing, Sales Contact Centre and technical support staff

Receive Guidelines containing training information

Induction training includes Training in Latitude Homes’ standards & procedures Branding induction Sales Process Quotations – including online training with DataBuild Customer Lifecycle Marketing programme Sales Contact Centre – including training with FrontEnd Database management Project Management – including online programme After Sales Service

Training

Licence Holder Benefits - Marketing

All marketing & advertising is handled by Head Office and includes:

nationwide and regional press advertising online advertising specific campaigns throughout the country advertising in all forms of media lead generation campaigns sales generation campaigns comprehensive website with complete listings of

plans & specifications database segmentation

The benefits of centralising all marketing and advertising include:

Combined buying power enables discounted media and opportunities for added value eg premium positioning within publications

Consistency of brand representation A synergistic approach - maximizing the effect of combining

all forms of media Working with an experienced marketing team that helped

establish and grow the Latitude Homes’ vision Allowing Licence Holders the freedom to concentrate on their

primary purpose... constructing homes and keeping their customers happy

Licence Holder Benefits - Marketing

Licence Holder Benefits - Customer Relationship Management

Tailor made programme developed by Latitude Homes

All leads and information are captured so that a relationship

with the customer can be established and grown over time

Customer leads are entered into the centralized database

Qualification occurs at the Sales Contact Centre

Requests for educational information are fulfilled by the Sales

Contact Centre

Qualified leads are directed to the local Licence Holder for

managing through the sales system

The benefits of a tailor made CRM programme include: Real time tracking of leads, prospects and sales Full accountability and monitoring of media spend and

effectiveness Round-the-clock Sales Contact Centre allows the Licence Holders

freedom away from the phone Establishment of a customer’s relationship with Latitude Homes

from the first point of contact Queries are answered quickly and effectively – by a real person

rather than a machine Qualification of leads so that the Licence Holder can concentrate

on those customers who are further along the decision making process- warm rather than cold leads

Enables the customer to enter into a multi-contact point programme to ensure a relationship is built over time

Licence Holder Benefits - Customer Relationship Management

Licence Holder Benefits - Quotation and Project Management Tailor made application with a user friendly

interface

Allows accurate quotations, tracking and

management of all projects

Full training in these applications is provided

during Induction stage

The Latitude Homes andLicence Holder Relationship

Joint responsibilities in order to ensure all parties profit and are successful

Licence Holder Responsibilities

Compliance with Latitude Homes systems, procedures and guidelines

Maintain high quality relationships with customers, suppliers, Latitude Homes staff and other Licence Holders

Active participation in all marketing and advertising initiatives

Adoption of sound business management methods

Latitude Homes Responsibilities

Provide Introductory and ongoing training for all systems, procedures and guidelines

Maintenance of preferential arrangements with suppliers

Supply quality sales leads generated by nationwide and local marketing campaigns

Provision of business mentoring strategies

Developing The Latitude Homes Licence Holder Relationship

Review Stage Questionnaire already supplied to Latitude Homes Documentation included in the Latitude Homes Licence

Proposition to be signed and returned.


Pre Licence Holder Stage Latitude Homes will review the signed documentation and the

subsequent information Both parties to decide if they want to continue to the next

stage Meeting to present the Latitude Homes Licence Agreement Legal advice to be sort by Licence Holder Sign Licence agreement


Induction Stage

Introductory training in Auckland

Meet Latitude Homes staff and preferential suppliers

Site visits


Operational Stage

You’re in business!

Continued support and training

The Success Cycle .

The Success CycleEstablishment Phase

The Success CycleGrowth Phase

The Success CycleSelf Sufficient Phase

The Success CycleSale of Investment Phase

Starting Point

Establishment Phase - comprehensive training & support - establishment of a viable business

The Success Cycle

Growth Phase

- establish a showhome

- business growing with leads and completed sales

- increase the number of staff

The Success Cycle

Self Sufficient Phase

- achieve work / lifestyle balance

- freedom to choose how to spend your time

The Success Cycle

Sale of Investment Phase

- choice of remaining in the business

- move onto other opportunities

The Success Cycle

The Investment

Establishment fee - $150,000 plus GST Covers: Maintaining the long term value of the Latitude

Homes brand Training and instruction of the Licence Holder Training Guidelines Protection of all trademarks, trade names, logo types

and symbols Research & development relating to products and

general operational methods used by Latitude Homes

The Investment

In addition: $3000 plus GST royalty fee per kitset,

transportable, shell only, an full build house sold paid on receiving first stage payment

2% of gross sales towards lead generation & marketing – payable monthly

0.5% of gross sales towards computer administration – payable monthly

Next Steps

Complete and return the 3 documents at the back of the Proposition folder

Latitude Homes to consider supplied information

If you wish to proceed further contact Latitude Homes to arrange a meeting to review the Latitude Homes Licence Agreement

Seek legal and financial advice

Thank You.

licence holder pres_ v1

Real Estate