Profit Pools in the Green

Profit pools in the green home building and high-design manufactured home industry profit pool can be defined as any point along the value-chain of an industry (Profit pools, 2009, Loose suits). Currently, given the pattern of buying trends in the home industry, green buildings offer one of the most profitable sources of enhanced value-chain maximization. A clear profit pool that can be exploited is in the greening of existing structures, as well as the construction of new and greener homes. In fact, in many communities where available land is already taken up by buildings and developments (many with for Sale signs), greening existing structures might be more feasible and profitable than constructing new ones. Homes that have been abandoned by individuals who cannot pay their mortgages may exist in states of disrepair and doing needed renovation work on these buildings can be accomplished in a 'green' way. Energy-efficient windows and doors, improved insulation, and new techniques to reduce water consumption that reduce the stress upon the environment and costs for the inhabitants are all examples of popular green building modifications.

Of course, some individuals will always want a new home, built to specification. They may wish to take advantage of more 'cradle to grave' options for green building, such as using renewable or recycled materials, landscape design that minimizes water usage and the need for chemically-derived fertilizers, and other options that can be integrated into the very foundation of the home. For home buyers seeking to take advantage of low mortgage prices by buying new homes, 'cradle to grave' green homes are a way to make an investment in a home that keeps giving back, both to the planet and also to the home owner, in terms of utility costs.

Some individuals taking advantage of the new availability of mortgage to customers with strong credit histories may wish to exploit another trend, that of customization of modular homes. The high-end modular or 'instant' home industry enables the consumer to build a home according to design as well as environmentally precise specifications. "In an era when constructing a house on time and within budget keeps getting tougher, instant homes can go up twice as fast and save as much as 50% compared with a traditionally built home. It isn't one size fits all anymore, either, thanks to modern computer-design methods that let architects vary the prefab houses the way Lego blocks can be moved around. More than that, though, architects think the new avant-garde looks can win over upscale buyers craving a touch of high design for their abodes" (Jeffrey & Keats 2004). Modular homes are both unique and inexpensive -- a perfect option for new home buyers wishing to keep costs down in an uncertain market yet to amp up the beauty of their structures. They are also good options for seniors, with downsized 'empty nest' dreams who want less home to support, but do not wish to go into a senior community.