KB Home (NYSE:KBH) Q3 2023 Earnings Call Transcript

Jeff Mezger: Jay, that’s in part why I mentioned what I did about the smaller floor plans we have available, and you cover us well, you know in a Built to Order business, you’re really a consumer laboratory every day, you’re getting feedback on what the consumer wants, what they think and most importantly what they buy. We watched the trends closely on frequencies by plans in this area, in this community, is it rotating to smaller plans or not, and if it is and we haven’t seen real evidence of it. Yet, we are down incrementally a few feet on average, but it’s not — it hasn’t moved much over the last nine months. If it did, we can quickly go introduce a smaller model into the model park and will do so to help sales there. We’d rather do that and hold margin than just drop price on what you’re offering and hit the margins.

So, it’s one of the levers we pull and we’ve done it a lot in the past, in part because we have product on the shelf, we can go, plug and play. It’s already plan checked, it’s approved, and we can go insert it as a model and help that community succeed. So it’s one of those things we track very closely.

Operator: And ladies and gentlemen, that does conclude today’s teleconference. Thank you for your participation. You may now disconnect your lines.