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Posted by Administrator on May 13, 2012 · Leave a Comment 

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We speak with Ross Robbins, The Homebuilder Coach

Sometimes pop culture and clichés provide just the words we need to remind ourselves of some basic truths as we are spinning our wheels when selling new homes. Aphorisms such as “Luck is when preparation meets opportunity” have survived because they hold real meaning. The problem is, for most of us, is that we think we have nothing to do with our luck…it just happens to us. So let’s talk about getting prepared.

The past few years have been a very, very tough time for new home sales people and for their employers, home builders. While a number of markets have had moderate activity far more have been stagnant or even non existent for new home sales. So it is tough for us to spend what little money we have to become prepared. Heck, we are focused on basics like survival. I understand yet I ask you to think about this cycle in another way.

History shows us that out of every economic downturn a new upward cycle will emerge like a Phoenix rising from the ashes. So, it is not a matter of if this upward cycle will come, rather it is a question of when it will come and how strong it will be. By most estimates, which includes NAHB economists, we are already in a recovery, albeit a very weak one for our housing sector. In effect they are saying “The sun will come out tomorrow. Tomorrow, I love ya tomorrow; you’re only a day away!”

Well, maybe it is time to prepare. That means education and training. Builder Radio is a great place to start the process as the range of experts whose work is available at your fingertips can get you started in whatever area of this business you need help. Then you can go to those experts’ websites for a bigger menu of the training they offer. Or check in with your local Sales and Marketing Council for other educational opportunities.

I have been through five downturns in my career in this industry and each time my opportunity coming out of the down cycle was in an area that was new to me…a twist on an old idea. In each case I needed to prepare with some study and in each case I found what I needed from my local homebuilder association and SMC. As the educational arm of the National Sales and Marketing Council, the Institute of Residential Marketing has so many courses that one will fill the need you might have to begin competing effectively in the new economic upturn.

While education and training is more difficult to find these days, NAHB is currently working on one key course CSP to go online. It will be available in late fall.

I cannot speak for others, but I was willing to pay significant sums for good training. I saw, among others, Dave Stone and Tom Richey with their sales processes and Briggs Napier, Jr. with his marketing approach. Later there was CSP and the MIRM courses and I paid for every one of these sessions. I was a veritable sponge, soaking up the wisdom and experience of the masters of our industry. My dad taught me some important lessons besides getting to school the hard way. He taught me to take responsibility for my skills and attitudes myself…that nobody was as invested in me as I was and I should operate accordingly. So, I spent my own money, usually when I didn’t really have much to spare.

I did it for three reasons.

1. After working at several different things that weren’t right for me, I came to the housing industry and found my home. Because I knew I was going to stay and build a career, I found it made a lot of sense to invest in my success for the future. If this isn’t your home, this might be a great time to find the thing that does make your bell ring. If, on the other hand, this tough part of the cycle hasn’t dimmed your enthusiasm for this great industry, it is really time to get yourself ready for the next part of the cycle and insure yourself the best chance to profit from it with skills, knowledge and confidence you will find from the courses offered by IRM and your local SMC.
2. I understood that knowledge and confidence I gained stayed with me, not the place I was, and, best of all, it was portable. My builder only got it as long as I worked for him. It seemed to me that if I owned it I should pay for it and really not be beholden to a place that wasn’t a great fit for me just because they had paid for my training. I have worked for many different companies, but I still own all that training from so long ago. In the company called Ross Robbins, Inc., I alone was the source of the training budget.
3. I could choose the things that made sense to me and not be forced into a program or style that didn’t fit me. If I am spending the money, I get to choose where it goes. Each of us has a path that makes sense for us, and with the huge buffet of educational choices offered through the IRM and NSMC, we can select those that further our personal journey.

After 40 years in this business, going through what is my fifth downturn, and after scratching and paying for any training I could get, I am utterly baffled at reluctance to invest in oneself. Those in the industry less than 15 years seem to be waiting for someone else to rescue them or for the buyers to come back like the swallows to Capistrano. I believe that those who have studied the swallows will see them; the rest won’t. Then those who don’t will say what a tough, unfair business homebuilding has become while the few who cared enough to get better skills to match the tough market will survive to thrive when the market improves as we all know it eventually will.  I would like to see you invest in your own success and be one of those to thrive.

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Contact Ross Robbins:  HomebuilderCoach.com

NAHB National Sales & Marketing Council:  NAHB.org/nsmc

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Posted by Administrator on May 7, 2012 · 1 Comment 

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We speak with Jeff Shore, Shore Consulting

Jeff Shore has worked with new home sales teams from across the country.  Now, he’s expanded his reach to include the United Arab Emirates.  He joins us this week to discuss his recent trip abroad, what he saw from new home sales teams in Abu Dhabi, and to talk about Sales Leadership, negotiation, and how to increase the performance of sales teams in this week’s program.

Listen to the audio interview with Jeff.  Notes from the interview are posted below:

1. Everybody Negotiates.
Even in the best market we can expect buyers to ask you to sharpen your pencil and push you for the best deal you can deliver.  But, in a buyer’s market, negotiations can get out of hand.

This past February Jeff Shore reported on data that was accumulated during 2011 regarding the buyer trends in the new home market and what builders were doing to meet buyer demand.  The report indicates that the majority of homebuilders negotiate on price 75% of time.  Only 30% of builders claimed that they don’t negotiate price at all.

However, those that don’t habitually negotiate price meet or exceed their business plan goals 93% of the time as opposed to only 20% for those that regularly negotiate.  And if there is a broker involved, there is a much greater chance of that you’ll be asked to negotiate, often starting from an unrealistically low point.

The Realtor’s job is to be the buyer’s advocate and to get them the best deal they can.  As with buyers, if we don’t help them see the value in our homes, they’ll go to price as the sole point of negotiation.  So, deals brought to us with Realtor involvement often begin as low-ball offers.

What to do:  
“If you want to protect your margin, the first thing that you have to do is to dismantle that unrealistic low-ball offer.  We have to make sure that we’re managing expectations from the front end of the conversation to prevent those low offers,” say Shore.

When you’re working with brokers, there needs to be a separate conversation that says, “We truly hope that you’ll encourage your buyers to make an offer.  But, if you’re planning on coming in with a price that’s substantially below our asking price, then please understand that this will only upset your buyers because the offer will be summarily rejected.  So, if you’re looking to negotiate price, you need to think in terms of a few thousand dollars and not tens of thousands.”

“Give clear direction that sets the tone for the Realtor before they structure an offer as to what their expectations should be.  If the broker is left on their own without any guidance from you, you’re going to get a low offer.”

It’s equally important to set realistic expectations for buyers.  When they ask if what your current discounts or incentives are, or if there is any room for negotiations, you can answer that there may be a small margin depending upon when they are willing to close and the plans and options the choose.

2.  Sales Leadership
The Pulse Report asked managers to rate the overall talent of their sales teams.  Only 6% rated their team as below average.  On the other hand, 74% of sales managers rated their teams as average or above. Yet, only 41% reported that their team met their business plan.  Obviously, these numbers can’t represent a true average.

So, where’s the disconnect?  It has a lot to do with how much time sales managers spend in the field with their salespeople.  The more connected the sales manager is to the daily activities of their team and the more time they spent working with, training and coaching individual sales counsellors, the more realistic the managers were in their overall evaluations.

Another revelation was that the more often that managers mystery shop their teams, the less likely they were to overrate them.  It is critical for sales managers to know what goes on in the field, even the strengths and weaknesses of individual salespeople.  That way you’ll know what is needed to increase performance.

Mystery shopping can reveal areas to work on; coaching can bring immediate improvement.

‘Money Ball’ Factors
The Pulse Report also identified two factors that are often overlooked but have a strong bearing on sales performance and meeting sales goals:  Mystery shopping, and paying salespeople on a competitive basis instead of a shared basis.

“Sales leaders who do these two things – consistently monitor the performance of their individual sales counsellors and pay  according to a competitive floor – show a higher consistency in meeting their business plan,” reports Shore.  They could more readily identify the areas in which training was needed, realized a lower turn-over rate, and could give a more accurate assessment of team talent.  In fact, those sales teams that were both mystery shopped on a regular basis and were paid on a competitive floor were 40% more likely to achieve their business plan than those that didn’t.

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Get your copy of the 2012 Sales & Marketing Pulse Report from Jeff Shore at http://jeffshore.com/pulse/.

Posted by Administrator on April 15, 2012 · Leave a Comment 

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Part 2 of our conversation with S. Robert August, Northstar Synergies

There are many reasons to follow-up with a buyer some of which have been addressed. As a reminder, please note the following reasons:

• Call or write as a courtesy. People like to know you remember them and care about the relationship you have just begun or are continuing
• To provide information, such as: new financing rates, closing dates for existing inventory, color selections of inventory, product changes within inventory, new products inclusions or options, energy costs and more.
• To provide answers to their questions.
•  To overcome objections. It is interesting to watch and listen to buyers from their face to face meetings and the phone or email conversations later. They seem to become more aggressive with salespeople when they are not physically in front of them.
• To remind the buyer of you and the product you are selling.
• To induce the buyer to return.
• To also encourage the buyer to bring back trusted family members and friends. Once we can visit with these influence peddlers we can understand their concerns and mitigate them head-on. They will then help to close the transaction with the salesperson.
• To seek and earn referrals.

‘Thank You’ Letters

Thank you letters should be sent the same day that you have met a buyer. A letter should be handwritten as well as the envelope. When a buyer sees that you have taken the time to hand write a letter, it is appreciated as a sign of personalization, which magnifies your interest in the buyer. Additionally, most people take the time and interest to read a handwritten note before any other mail.

In today’s busy world, the buyer will also appreciate your consideration to invest time in with them. The mail will stand out because there is less mail being delivered due to the advancement of email.

When you send a letter, send an email too. The more you show an interest in your buyers the more your buyers will appreciate you and reward you with a sales agreement.

Incidentally, your competition is not sending emails and letters regularly. Now, is the time for you to stand out and get the recognition from your buyer by being communicative through emails, mail and phone conversations.

The Post-Sales Agreement Follow-Up

• To thank the buyer for purchasing a home.
• To get the buyer involved with the home.
• To have the buyer return for color selections.
• To have the buyer return for the loan application and process.
• To keep the buyer informed about the home under construction. It is necessary to follow-up with phone calls a minimum of two calls per week (on the first and fourth day) and emails daily that keep the buyer abreast of what is taking place in the neighborhood regarding her/his home’s construction phase, loan instrument, the missing product is now available and more.
• To encourage her/him to return to the neighborhood anytime.
• To praise everyone who has had anything to do with the home when praise is due.
• To praise wise decisions.
• To seek and obtain referrals.
• To anticipate buyer’s remorse and deal with it.

There once was a salesman by the name of David Hildebrand who worked with our team for many years in Denver, Colorado. David obtained clean empty pill bottles, filled them up with M&Ms, screwed the top on tightly, placed a sticker on the front of the pill bottle entitled Buyer’s Remorse Pills, and then told the buyer that she/he would feel buying the home might not be a good idea at 2 am that night after having signed an agreement. Well, then David would tell the buyer to take two or three pills and call him in the morning. It worked every time. David had less sales cancellations than any other team member. If the buyer’s resource cannot be mitigated, try to have a heart to heart and face to face discussion to remedy their concerns.

Stay in Touch

Contact your prospective buyers and buyers once or twice each week throughout the construction process. Keep them informed about their interests. The more that they receive word from you via phone and email, the more comfortable they will become with you and the company you represent.

Should an issue arise, you will be able to handle it more professionally as a result of having set proper expectations and established rapport with the buyer.

Get Buyers Active in Referrals

Once the agreement to purchase has been signed, place a sign at the home site of the buyer with the following words printed: “Future Home of Name (of buyer).

Secure names of at least ten of the buyer’s friends. With the buyer’s permission, call them and invite them to enjoy a party to see the new home that their friends are buying. It is much more difficult for a buyer to back out of a transaction after the friends have seen the new home.

Create a Buyer Referral Program with incentives. The more the buyers participate in the program the more buy in they have to the company from whom they are buying the home. Therefore, when an issue arises it will be easier for everyone to solve the situation together.

In Conclusion

Research indicates that 95% of every visitor is never followed-up after visiting a sales environment regardless of the product. What a shame. It costs hundreds of dollars to have a visitor and thousands of dollars to convert a prospective buyer into a buyer.

Take time to review and implement the follow-up techniques that have been introduced to you through this article and you will become smarter, more clever and certainly more profitable!

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S. Robert August, BA, MIM, NAHB Life Director, IRM Fellow, MIRM, CMP, CSP, MCSP, CAASH, and Master Train the Trainer is President and Founder of North Star Synergies, Inc., a national firm based in Centennial, Colorado which specializes in executive business development strategy, providing business executives, home builders, developers, REALTORS, manufacturers, and lenders with marketing/management and sales training.  Robert is past Chairman of the NAHB’s National Sales and Marketing Council, and past President of the Institute of Residential Marketing.  Please contact Robert by phone 303.500.3400 or e-mail robert@northstarsynergies.com.

Posted by Administrator on April 8, 2012 · Leave a Comment 

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By Robert August

Attracting a steady stream of new buyers into your business is a main focus of most builders and businesses today.  But, what we do with those prospects – how we nurture their interest and lead them through the sales funnel – really defines our sales success.  In short, it’s all in the follow up.  Here are some thoughts, strategies and techniques that will help you build strong and profitable relationships with your buyers.

Setting the Stage

Many sales coaches and managers believe that it is best for prospective buyers to fill out the prospect asset management cards upon coming into a sales office. They say that it helps them obtain more accurate information right away.

My preference is to ask the qualifying questions and write the notes on the card directly throughout the qualifying and demonstrating phases of the meeting. The more the buyer sees the salesperson write the questions, the more comfortable the buyer will become with her/him. Just think about this point for a moment. Now, if a doctor does not take notes when visiting with the patient, how does the patient feel?  The answer is simple ~ the patient feels that the doctor is not taking the patient seriously. Also it is easier reading your handwriting or printing rather than the buyer’s. You will also notice to complete all of the areas on the card whereas the buyer may choose to leave areas unanswered.

Another tactic is to have the buyer fill out the card at the end of the meeting. Usually the buyer has become more relaxed with the salesperson and will provide more qualified information and more reasons for each area of the card. For example, upon meeting a salesperson most buyers provide one reason for coming to visit~ signs/drive by. This reason is simple. It is the last point of contact the buyer experienced prior to walking into the sales/discovery center. Yet, at the close of the first meeting most buyers will provide salespeople with more than one reason they visited.

Prior to leaving the meeting the salesperson should review the questions that have been left unanswered for the buyer. The answers may have been known by the salesperson but it gives her/him the reason to contact the buyer. Always leave questions unanswered so that you can earn the right to contact the buyer. Most buyers only want to leave their email address. Please get all of their contact information and use the phone whenever possible when replying to the buyer. Emails have often become impersonal while speaking to a buyer provides you the ability to understand the buyer through tacit and nonverbal communication.

The initial follow-up call should be made within 24 hours. Salespeople should really make the first call within two hours of the visit. When the buyer receives word from the salesperson quickly it reinforces the interest of the salesperson in the buyer.

Getting the Buyer to Return

Prior to calling please review the card. Make sure you have as many answers complete for the buyer’s questions and you know how to communicate them properly. If you don’t have answers you should still call the buyer within two hours.

The visit that they had with you will be fresh in their minds. They will appreciate the call regardless of how many answers you have for them. You may simply thank them for visiting you, tell them you are still working on obtaining their information, and ask them for comments and questions about their visit with you.

The Call Back

Have a mirror or reflective glass next to your phone. Look into it.  Smile and retain the smile while you are visiting with the buyer. A smile can be seen over the phone.

Identify yourself with first and last name and the company with whom you are affiliated.

Ask if this is a good time to visit ~ not a bad time. If it is not a good time for the buyer to visit ask for several times that would be suitable for the buyer to visit with you via phone or in person at the sales/discovery center.

Be genuine in conversation.

Be enthusiastic.

Have a reason for calling.

If the buyer is uninterested in purchasing a home, please determine why? This information can be helpful for you, sales management and the marketing team. The buyer may be hesitating and may provide you with an objection which you can mitigate to get back on track to re-invite to your sales/discovery center.

Remember to always ask for a referral from a buyer at the end of every presentation regardless of the buyer being interested in purchasing a home from you.  It further shows that you regard your buyer regardless of whether she/he is actually a buyer.

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Part 2 of Smart, Profitable Follow Up will be posted next week.  Contact the author, Robert August, at http://NorthStarSynergies.com

Posted by Administrator on April 1, 2012 · Leave a Comment 

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We speak with Don Grandy, Founding Partner of Q3 Marketing:

On March 30 Facebook rolled out a new page design for all businesses, brands and organizations using the site. This new page design is known as ‘Timeline,’ because it organizes a page’s content in reverse chronological order.

In addition to a updated and more image-centric layout, business pages have new administrative features and functions that allow for greater publishing control and increased insight into visitor activity.

It is important for all businesses to be aware of these changes and make any necessary adjustments!

The Major Changes

• Image-centric layout (cover image: 850 × 315 pixels)
• ‘Timeline’ structure (reverse chronological), as well as new ‘Milestone’ feature
• New admin panel features
  • Basic admin panel always at top when logged in showing recent activity
• More prominent About section
• More controls on how posts are displayed (star, pin and highlight stories)
• No more default landing page tabs
• What was previously known as a “page tab” or “landing page” is now called an “app”
• Apps/tab pages are now 810 pixels wide (up from 520px)

New Look And Feel

The first thing you’ll see are the two enormous images at the top of the page—the cover and profile photos—as well as the timeline itself. (In fact, if you want a pithy summary of the new page design, this will do: image-heavy Under the two featured images is a film-strip of thumbnail photos; these are your Page Apps. (‘Apps’ is a bit of a misnomer; for most users, these apps will simply be page tabs that lack any special app-like functionality.)

Other visual changes: the ‘About’ section is given much greater prominence. Your photos, events, and custom apps are now easier for people to find.

“Pin” And “Star” Content

You or your designated page admin can now “pin” one post to the top of your page so that fans can see it “above the fold” for up to seven days (or until new content is pinned). Pinned content is marked with an orange flag. Your business can also mark posts as “starred.” When you star a post, it expands to widescreen, drawing more visitor attention on your timeline.

Tip: To hide a post from your feed, hover over the top-right menu of a post, click the drop-down menu and choose hide story to remove the story you’re looking at.

Friend Activity

Now, when people visit your new business page, they’ll see how their personal Facebook friends have interacted with your page. Friend activity used to be located in a sub-tab, but now it’s front and center, just below the About section. If users tag your business page in one of their posts or check in at your business’ location, the people they originally shared with will see these stories highlighted on your timeline.

HubSpot helpfully puts this change in context: “In a nutshell, this means that your page will now include more elements of social proof; if a visitor to your page sees that he/she has friends who have interacted with your page, they might be more enticed to stick around and become a fan themselves.” Social proof is powerful stuff!

Most Important: Think Visual

In the new design, your cover photo (located on your front page) will be an expansive 850 × 315 pixels. Your app pages (previously known as tab pages) will be 810 pixels wide, compared to the current 520 pixels. Because images will appear larger and more prominently on your page, it’s essential that you post great visual content for your fans and visitors. Use photos, charts, infographics, and other imagery to take full advantage of Facebook’s new layout!

What’s more, the new layout gives increased prominence (and thus increased visitor attention) to posted photos—much more than they did in the old “wall” layout. You can take advantage of this change by posting photos along with status updates, adding oomph to your updates.

Need help updating your Facebook page… Or defining a successful Facebook strategy?  Contact Q3 Marketing at http://qthree.ca.