Investor Relations:  Maximizing Profits through Cost Efficiencies 

Responding to market changes and quickly adapting product to meet demand has been the cornerstone of Pat Neal and Neal Communities’ success since 1970 and the benchmark for its ability to remain profitable and outperform the competition amidst economic and real estate downturn.

Responding to marketplace changes

Amidst market correction in virtually every financial and investment sector, Pat Neal responded by creating economies of scale and downsizing Neal Communities’ new homes and price points. New home sizes now start at 947 sq. ft. and come at a price in the low $100,000s. The smaller size also provides an energy savings to homeowners, an increasingly significant factor in home size purchase decision, due to rising costs and the need for consumers to better manage expenses across the board.

Business acumen

Having made most of its land purchases in the late 1970s and early 1980s, Pat Neal still owns enough land for more than 6,000 new homes. These lower land purchase prices, along with efficiencies in personnel, direct costs, design efficiency, and no-debt financing have all contributed to Neal Communities’ ability to adapt to shifting market changes and create rising optimism about the future of home building in Sarasota and Manatee counties.

Trade partner relationships

Leveraging relationships with 400 trade partners that span up to 41 years (Mark McBride) and many who have worked with Neal for more than 20 years (Reed Johnston), enables Neal to negotiate significant reductions as part of a team effort to respond to market changes. 

Building efficiencies with design quality integrity

An extensive National Accounts Rebate Program, through which Neal and its partners purchase materials through a Colorado-based builder buying organization, has helped lower costs but not material standards.

Committed team

Neal has a committed team of people that have worked with him up to 33 years, including the majority of senior management that have been with Neal Communities for more than 20 years.

Professional management

The executive management team at Neal Communities is comprised of people educated in business with undergraduate and Masters degrees in finance and accounting, as well as extensive human relations experience. While Neal Communities is known as a builder, the collective team brings areas of expertise and knowledge that span all facets of the business including land acquisition, forecasting, planning, development, design, construction, sales, marketing and customer service.

Conservative financial strategy

Neal Communities has always benefited from Pat Neal’s conservative financial strategy, a zero-debt philosophy and commitment. At this writing, Neal Communities is debt-free and has no other guaranteed debt under its obligation.

The Club Collection

More than 20 percent of Neal’s total cost reductions are from more standard, efficient plans.  Neal Communities’ new Cafe Collection are from a national builder design group Pat Neal located that allowed for cost efficiencies on the design-side with the ability for Neal to execute the new designs with its own quality and detail standards.

Sales support

All the construction, design and building efficiencies have created a savings pool for Neal Communities but its sales accolades come from a dedicated team of professionals who continually speak with homebuyers and provide feedback to Neal Communities about trends and purchase patterns. It is this open line of communication between the real world and the planning world that has enabled the company to successfully weather the downturn in the economy and prepare for a changing marketplace that will lead the company toward its success this year and beyond.