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One of life’s philosophical discussions for success in life is individual self reliance vs. ‘it takes a village’. This debate is heard often in the political arena, religious & educational venues or just at a cocktail party. There is a dividing line that separates people’s opinions and each side seems to have their feet firmly planted on their respective side of that line. Discussions can become quite heated with little acknowledgement given to the merits of the other side’s perspective. However, when it comes to new home sales, my feet are planted on each side of the line.
In this column, I usually discuss what agents need to focus on to become superior sales professionals. For those who follow The Home Front, you know I approach excellence in sales from all angles - technical as well as the relationship aspect of selling. For the self reliance part of the equation, sales professionals must be self motivated. No one can do it for them. It comes down to the ‘just do it’ slogan. Agents must take the initiative to seek out ways to improve and adapt their selling skills. As an ongoing process, each sales agent must ask themselves…what can I do to sell better? They need to seek out books, CDs, mentors, seminars, internet resources and more to find the resources to improve and update their selling skills. Unless each agent challenges themselves to be better, they will not succeed. All the trainers in the world will not make a bit of difference if each agent does not implement what is being taught. If I listen to a Beethoven CD for 4 hours a day but never practice playing the piano, I seriously doubt I would be invited to play in a concert hall.
The village portion of the equation is the company for whom the agents sell. Sales agents, even the best, need the support of those they answer to. By their very nature, to be at the top of their game, sales professionals need to stay motivated and positive.\Agents need to bring to their respective sales centers excitement, optimism and positive energy on a daily basis. That is difficult to do long term when your company just leaves you dangling out there on your own. During the last couple of years many companies have had to make some difficult decisions and cut in-house talent that has traditionally provided sales support to their agents. Nonetheless, whoever is in charge of sales teams must stay focused on providing that support.
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This becomes a challenge when you have so many other responsibilities suddenly laid on your desk, each of which is a full time job in itself.
Beyond just looking at numbers in terms of sold homes, managers must ask themselves what we are doing as a company to help my sales team meet those numbers. What are we doing in terms of a marketing campaign to bring in traffic? Are we listening to our front line people to insure our marketing campaign matches who actually visits our sales centers? Are we providing the best sales tools for our agents?
Are we providing them with the needed support via training, seminars, etc. to allow them to grow professionally?
Do I have a follow-up program in place to monitor any training provided to my team? Do I give them the occasional weekend off so they can be with their families? And the most difficult question to answer, how can I do all of the above with a decimated budget?
Lean budgets aside, taking care of your front line people is crucial. Sales agents can not be ignored. So whatever dollars you have in your S&M budgets, you need to find ways to redirect some of that money towards the evaluation and training of your team. Perhaps in lieu of a $20k incentive package, you can still achieve the same goal by directing $5k towards the sales team. Cumulatively, that could add to sufficient funds for some sort of evaluation and training program. The best talent must be in your sales centers. If your agents are good, then invest some money to make them great. If they are great, invest some money to keep them at that peak performance level. If they are fair, and you know they have potential, then invest in them to make them better.
If they are poor…. .
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Men & Women Agree On Home Must-Haves
Ever heard that kitchens are important to women and garages are important to men when buying a home? Not so according to a survey of 1,000 home shoppers, as reported by Realtor Magazine. It found that men and women are generally looking for the same features. Here's what men and women want in a home:
| Top 10 features desired by men: |
| 1. |
Garage or designated parking space, 85.5% |
| 2. |
Master suite, 79.8% |
| 3. |
Ample storage space, 71.2% |
| 4. |
Guest bedroom, 70.2% |
| 5. |
Large closets, 64.2% |
| 6. |
Outdoor entertainment area, 63.4% |
| 7. |
Gourmet or updated kitchen, 59.1% |
| 8. |
Breakfast room or eat-in kitchen, 55.2% |
| 9. |
View, 44.5% |
| 10. |
Large yard, 43% |
| Top 10 features desired by women: |
| 1. |
Garage or designated parking space, 87.7% |
| 2. |
Master suite, 77.8% |
| 3. |
Ample storage space, 72.7% |
| 4. |
Large closets, 68.7% |
| 5. |
Outdoor entertainment area, 64.2% |
| 6. |
Guest bedroom, 63.9% |
| 7. |
Gourmet or updated kitchen, 61.8% |
| 8. |
Breakfast room or eat-in kitchen, 56.1% |
| 9. |
Large yard, 43% |
| 10. |
Wood floors, 40.9% |
Front Porch continued
..they are costing your company and the rest of the sales team money.
Great sales producers do not happen over night. Like most things in life…it is a process. Everyone in sales must change the way they think by increasing their knowledge. Continuing to expand sales knowledge is the fastest way to increase sales. So think about that dividing line and become the village that helps those agents who are self reliant. Step one? Evaluate your sales team via the mystery shop process. LeBlanc & Associates can get you started by identifying who is great or not so great in your sales centers. Give us a call!
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New home sales are like icing on a cake. The icing holds together better if there's actually some cake underneath. Marketing wisely is how you provide the cake.
There are two marketing strategies I am using to create success for clients right now. One is tangible product differentiation. Put something not typical of your market into your homes, package (market) whatever you decide to do in a way consumers will fall in love with, and then make sure your sales staff can explain your advantages in a compelling fashion. What will result is more sales and more gross profit. People will line up and pay more for something that makes them feel good.
The other marketing strategy that can work is providing Nordstrom's-style customer satisfaction with a Ritz Carlton buying experience. This is an example of intangible product differentiation. People will line up and pay more for something that makes them feel good. Is there an echo in here?
Of course, combining the two is the best of all.
But, failing to do either one condemns salespersons to selling a commodity - homes no different from other new homes on the market.
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Builders then ask salespersons to close harder to make more sales and defend the list price. Since customers only react to WIIFM, pushing the builder's self-interests onto them doesn't work very well. So, getting the job done requires builder-marketer cooperation - sales being a sub-set of marketing in my view. .
I am national chair of an official NAHB working group charged with finding ways to bring builders and marketers closer together in a cooperative relationship of mutual respect and support. It is time that we surrender unrealistic expectations about what REAL CLOSERS can accomplish, and turn instead toward giving them some cake to work with.
In the process, maybe we can wean builders from the idea that lowering prices is the best way to compete. This is the REALTOR strategy, which rests on the premise that no real marketing will be applied to the challenge. But real marketing, effectively applied, can create the opportunity to grow share and margin simultaneously.
The truth is that in any product category in any marketplace, there is room for only one low price provider. All others will fail chasing what only one of them can have.
To have a chance to succeed at the low price point, our candidate builder had better have a genuine and substantial cost advantage.
There are specific ways to achieve this but they are very, very demanding.
It is better to turn to the positive power of marketing to create a genuine opportunity for success at a higher price point; trusting that WIIFM will convince customers to pay more for a product and an experience of buying/owning that product that they genuinely want.
Then, we apply the magical power of consumer psychographic segmentation, as it affects product purchasing decisions, to determine exactly what to add and how to market it so that the desired effect is attained.
Builders who turn away from this will not survive. Builders who will embrace it will prosper.
Bill Webb, MIRM
2004 Highland Drive
Amelia Island, FL 32034
Home/Office: 800-521-3529
Away from Office: 904-206-2028
On the Web at WEBBonline.com
LinkedIn: http://bit.ly/Bill_Webb_MIRM
Facebook: http://tinyurl.com/Bill-Webb-MIRM
Twitter: http://Twitter.com/BillWebbMIRM
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| Our newest feature answers questions that agents face on a daily basis with the hope of helping agents navigate the murky waters of today’s selling market. If you would like a specific concern/challenge addressed, please submit it to The Home Front for our next edition. In this edition of The Home Front, we have 3 solid contributors offering their responses. Feel free to contact each of these respected professionals.
Question:Submitted by Martha Felix, Cornerstone Communities:
I think the most challenging objections we are facing today are the following statements from our prospective buyers:
1. "Prices are going to go down more."
2. “Short sales and foreclosures are a better buy”
3. “The economy is not good”.
Responses
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| Dave Harding
Hi Martha,
I am going to concentrate on attitude and motivation.
If you have ever sold used houses, you will have heard…very frequently… “How much will they take?” or “Will they come down?” You are experiencing exactly the same situation.
Your prospects ARE interested in YOUR homes and they are interested TODAY. You can be certain of this since they visited YOU, TODAY at YOUR homes. They may have seen foreclosures and short sales and foreclosures on the way, maybe even went inside. They certainly have heard/seen/read comments about the lousy economy. And yet here they are…at Cornerstone!! Their remarks are really code for: 𠇌onfirm for me that this IS a good time to buy despite / because of the economy.” If they were not interested, surely they have lots of other things to do with their time. Overtime at work, more exercise, sleep in, practice their faith, take a class, soccer with the kids, work in the garden, etc. Why invest their time to visit you…then to use the lousy economy as a reason to delay or avoid a decision to own at Cornerstone? Even in good markets, prospects have great fears in major decisions, including those in our business.
Something changed in their lives to compel them to come to see your homes. While no one wants to buy a new home that might depreciate over the short term, SOMETHING caused them to be shopping now. New job? Better job? Lost job? New kids? Kids moved out? Health issues…theirs or someone they want to be closer to? Etc.
So…these buyers think they are pretty savvy. They know that it’s better to buy when there are fewer competing buyers. They KNOW all about the economy. They may see the temporary sluggishness as an advantage for them, but they do NOT see it as a deal-breaker. Take comfort from their visit. Don’t let those seemingly-negative responses distract you. They are “on a mission.”
NOW, use the techniques that Roger and Mark are sharing, and make that sale! Good hunting!
Dave Harding
President, HARD Intelligence
949.315.5890
HARD@HARDintelligence.com.
Dave Harding is President of HARDintelligence.com a sales training resource for homebuilders and other housing stakeholders nationwide. He is the NAHB Sales Manager of the Year 2004 and a member of Who’s Who-- the Industry’s Finest. Dave teaches several courses on housing and sustainable community development at UC Irvine and is on the Advisory Board for entrepreneurship-focused programming at Chapman College.
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Roger Fiehn
1. Yes they could and when do you think they will bottom out? Of course you are aware that construction and energy saving materials are rapidly increasing so waiting to build your dream home will most likely end up costing you more money. And you will prevent your family from enjoying the home that they could have while you were waiting. How do you feel about that?
2. Are you certain? I have heard many horror stories about people that bought that way and ended up with an abused home which cost more to get it back in shape to enjoy that just buying a new one just the way they would like it. And with a warranty. How much time would you be able to spend fixing up a fixer-upper?
3. When do you think it will improve? Of course as it improves the prices as well as interest rates will rise with the economy which is the reason educated buyers like yourselves are taking advantage of today’s lower prices and incredibly low interest rates. What happens if you delay and miss the opportunities out there today?
Roger Fiehn, MIRM
Roger Fiehn & Associates
281-481-0831
roger@RFiehn.com
www.rfiehn.com
www.platinumrealtyservices.net
Roger Fiehn & Associates, Inc. - Sales, Marketing and Management Strategists, C level Executive Search for resort, residential and commercial clients in North America, Central America and the Caribbean.
Platinum Realty Services - Sales, Marketing, Leasing, Property Management of residential and commercial properties in Houston.
American Classic Custom Homes - creating unique residences for accomplished individuals in Houston, Santa Fe and other markets.
A frequent speaker at trade conventions all over the world, Roger is also an instructor for various management courses sponsored by NAHB‘s University of Housing. He has authored numerous articles in trade publications such as Builder and Builders Management Journal.
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Mark Bornstein
These are comments that are heard by all salespeople today and pose an opportunity rather than an obstacle. The first thing that we must take into consideration is that they are at your community and talking to you. Why are they there and why are they making the above statements? The answer is they need more information and are going through a process of evaluating opportunities and will buy once they take mental “ownership” of the home you are selling. So the real question is “Are you taking the time to determine their needs, wants and desires?” or are you “going through the motions”? Today, more than ever before it is necessary for us to be a COACH and not a salesperson with our clients. A COACH will take the time to LISTEN and determine NEEDS, and to allow the buyer to discover the benefits of the home that you are representing. You must become skilled in asking open ended questions that allow the buyer to process the information and related to their needs. A home is a very personal and important decision and the buyer today WANTS to make the RIGHT decision. Part of the coaching model is to help the buyer make the right decision and confirm that they are making the right decision.
As a professional sales person you should always welcome the above statements as they reflect that the person is a buyer. The question is can you determine and help them realize what is the right home for them and that NOW is the best time for them to make that decision. I always look at the above comments as a stall technique causing most salespeople to derail and give up. The buyer is saying “HELP me to make a decision and help to me understand the market”. They want you to be their sounding board to help them make a RIGHT decision for them. That is your job and responsibility to your builder. NOW go do it.
Mark J. Bornstein MIRM, CPC
President, The Bornstein Group, Inc.
mbornstein@comcast.net
13898 Morgan Drive NE Redmond WA 98053
Tel: 425.882.1127
Mobile: 425.444.2084
www.thebornsteingroup.com
The Bornstein Group Inc. is a corporation focused on sales, sales management, sales training, and fulfillment coaching. Mark published Energizing Your Sales, a book that brings focus to new home sales people and managers and is completing the 3C Principle a book which deals with a kinder more respectful approach to sales. Mark is a licensed broker, educator, consultant and has been vice president of sales and marketing for homebuilding companies in California and Washington.
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- SEEING IS BELIEVING. Eliminate the doubt. No matter what the market conditions may be, a community’s success ultimately relies on the quality of the sales agents. Video Profiles from LeBlanc & Associates capture each agent’s sales presentation, the good and the not-so-good, through the eyes of the buyer.
- CONFIRMATION:You must confirm your site sales staff is selling at peak performance. Accepting mediocrity or less is never acceptable.
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- TRAINING. Using a Video Profile from LeBlanc & Associates of your best agents demonstrates what you expect from the rest of the sales team. What better way can an agent learn than from the best of their peers? The training aspect is then reinforced with our self-evaluation guide.
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- TECHNICALLY SPEAKING. To maintain the highest quality of final product, all our work is done in-house. Our clients receive two DVDs of each sales encounter. Each video is processed to eliminate non essential footage.
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- QUALITY. LeBlanc & Associates is established as the premiere company for sales agent evaluations. Our business is your business . . . new home sales. Our high level of training for our field techs provides the best capture rate of your agents. We know you are paying to see your agents – not the walls and windows of your sales office.
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- WHY LEBLANC & ASSOCIATES? Have you tried the rest and found ill prepared field personnel? Have you seen more walls than agents? Do ceiling shots make you dizzy?
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- THEN BE PREPARED FOR THE BEST. GIVE US A CALL!
- LeBlanc & Associates
- 800.838.1779
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The Viewer
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How good are your agents?
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LeBlanc & Associates provides its clients the option of viewing their agent’s videos online from a secure link on our website. Each account is given a username and password to view each encounter from any computer at any location.
It’s easy! Give us a call!!
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