The Builder’s Mindset | Volume 3

Margins. Mindset. Mid-Year Moves.

Let’s take a breath.

We’re halfway through 2025, and if you’re like most high-performers I know, you’re carrying more complexity than ever: tighter margins, buyer caution, cost volatility, leadership fatigue.

But clarity is starting to break through.

The builders pulling ahead right now are the ones willing to ask the hard questions—and make the uncomfortable decisions. Not later. Now.

Here’s what we’re seeing on the ground across the industry—and what smart builders are actually doing about it:

1. Margins Aren’t Math. They’re Mindset.

Let me ask you something...

Are you chasing volume—or building profit?

Because here’s the truth: Margins aren’t a result. They’re a decision.

And most builders wait too long to realize they made the wrong one.

“You don’t get margin by hoping. You build it—with every contract, every spec, every product choice. If you’re not leading with margin in mind, you’re reacting—and that’s where profit bleeds.” — Builder’s Mindset, Episode 46

We’re seeing margin erosion show up in the same places over and over: overdesigned plans, SG&A creep, pace-driven discounting, pro forma fiction. Fixing it means getting simple, intentional, and unapologetically disciplined.

2. The Comeback Isn’t Flashy. It’s Strategic.

Some of you are still waiting for “the signal” that the market’s heating up.

Stop waiting.

“Things are cooling, but they’re not crashing. And if you’re paying attention, there’s opportunity here—if you have the mindset for it.” — Builder’s Mindset, Episode 44

Yes, volume has slowed in certain regions. But look closer:

• The Midwest is steady and even growing.

• Remodeling and custom builds are quietly thriving.

• Industrial and infrastructure sectors are moving with purpose.

There is no one-size-fits-all answer in this market. But the truth is, the builders showing up now—clean books, clear specs, strong trust with their teams and buyers—are gaining ground while others hesitate.

3. Toll Brothers Didn’t Blink—And It’s Working.

I didn’t expect to be impressed. Their luxury, high-option model isn’t usually aligned with the lean strategies I coach around.

But this quarter? They earned my respect. Big time.

“Despite all the noise—interest rates, affordability pressure, buyer hesitation—Toll didn’t flinch. They didn’t chase volume. They didn’t panic. They executed with discipline and brand strength in a way that I think more builders need to understand.” — Builder’s Mindset, Episode 47

• Deliveries up 10%

• Gross margin steady at 26%

• Cancellation rate just 2.8%

• $200K average design upgrade per home

They didn’t lower prices to get buyers. They built value—and buyers paid for it. That’s not fluff. That’s precision.

4. The Simplicity Shift Is a Line in the Sand

This isn’t a market where you can afford to patch things up at the finish line. Builders who keep trying to fix margin at the back end are bleeding dry.

“If you don’t build your margin upfront, it will get taken from you later.” — Builder’s Mindset, Episode 45

In this episode, I unpacked the Simplicity Framework I’ve been using with clients to:

• Increase margin

• Reduce chaos

• Scale responsibly

The key isn’t doing less. It’s doing what matters most—on purpose, with clarity. Every dollar you spend, every SKU you add, every scope decision you approve—it either builds trust and value or erodes it.

If You’re Still Reading, You’re Already Leading

You’re not here to play small. You’re here because you know the work we do in this industry matters.

You know this isn’t just about market share or margins—it’s about mission.

“The builders who win in 2026 are already doing the work.” — Builder’s Mindset, Episode 45

The Builder’s Mindset exists to help you do that work. Week in, week out.

We break down the earnings calls, the industry shifts, the mindset traps—and give you a strategy you can actually use.

No fluff. Just truth.

Want the Good Stuff Weekly? This monthly drop is just the surface. The weekly Builder’s Mindset newsletter delivers:

• Behind-the-scenes analysis of builder performance

• Field-tested insights (not theory)

• Faith-centered leadership for people who build with purpose

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Let’s keep building, —Mike D