Articles

The Front Porch Mary LeBlanc

So, Who's Managing Your Sales?

Broker Programs 201

Holiday Spirit

The Eyes Have It

Kudos Korner

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The Front Porch

Location. Location. Location. How many times have we heard this tried but true tenet? Sometimes, it is almost irrelevant what the house is in terms of size, style or condition. If the home just happens to be in the 'right location', the increased market value of the property will prevail over logic and other decision making issues. Yes, that 1400 square foot house with 2 bedrooms and walking distance from the beach will sell for the same amount of money (or more) as a 2500 square foot home with 3-4 bedrooms that just happens to be a 20-30 minute drive from the beach. Location.

Re-sale agents understand the value of location when selling and marketing a home. However, this is often overlooked with our new home sales agents. I am incredulous how even the best of agents ignore selling their community and surrounding area amenities. New home sales agents as a whole know how to sell their product. While it can be a challenge to identify their Unique Selling Points of their homes from their competitors down the road, agents know (or should know) that they need to focus on what sets their homes apart from others. Sometimes agents have terrific product with no competition, but their location is a challenge. Perhaps they are the first new construction community in an older established neighborhood. Sometimes they are the only new construction community in a rural area. So, while the agent sells his or her heart out in establishing value and benefit in their product, they overlook a major factor in the buyer's decision making process. Location.

Agents must learn what recreational facilities are and will be available (parks, lakes, walking trails, etc.). They need to know the who, what and where of schools, shopping, police, fire, churches, entertainment, etc. They need to know distances and driving times to shopping centers, employment centers and freeways. They need to know lifestyle issues that the prospective buyer will enjoy. Over the years, I have observed some terrific agents utilize some very unique approaches to selling their surrounding areas. One agent had a community located in the hinterlands. Knowing this was a major objection to prospective buyers, this agent astutely avoided the issue of miles. Using her aerial map, she drew a large circle around her community and then effectively discussed how this shopping center was so many minutes from here, that recreational site was so many minutes away, etc. She got the buyer thinking in terms of minutes, not miles. Another agent, selling in a downtown hi-rise community in a re-development area, effectively sold lifestyle issues. So, a $400,000 sales price for a 900 square foot condo was justified by the visualization of the area. Living downtown, you can walk to the theatre, restaurants, symphony halls, etc. In short, the agent sold to the dream (emotion) not the price per square foot (logic).

Another super star agent selling in a mid-rise condominium project, not only sold to lifestyle, but also had established personal connections with some of the merchants in the area such as coffee shops, delicatessens, etc. He enjoyed a working relationship with these merchants so when he was selling his product/community, he invited (and sometimes personally walked) the prospect to the coffee shop to say 'hello' and have a cappuccino or whatever. Nice bonding! It is easy for new home sales agents to overlook selling their community. After all, they usually have a nice new product to sell, traffic is brought to them by the marketing efforts of their company, and the assumption is made, why would someone visiting my site not want to buy? Like all assumptions, this one should not be automatic. In today's world, buyers need more than just the home. They need to know they are part of a community. Tract homes in the 'burbs' need to be sold and marketed differently. That is why builders over the years have been eliminating the word tract. It is cold and impersonal. Community has a much deeper connotation. Agents need to take that concept one step farther. A prospective buyer ponders what can be found outside the parameters of the walled or gated community to make them want to live there. Mr. and Ms. Agent, do you have the answers?

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So, Who's Managing Your Sales?
By Manny Schatz , MIRM

Home Front: Manny, while the focus of this newsletter has been primarily about sales agents, sales management should not be overlooked. What has been your experience with builders in having effective sales management? Manny Schatz: One of the greatest challenges home builders face today is overcoming the lack of proper, thorough and professional sales management for their sales people. The lack of proper management is not usually the fault of the sales manager. The responsibility usually lies with company in how it structures the position to fail from the start.
HF: So how can the builder structure this position for success?
MS: Many builders truly do not understand the role of the sales manager. They clutter the job with additional responsibilities that often take valuable time away from the task of actually managing a professional sales force. Sales managers spend most of their time sitting in meetings, working with advertising agencies and interior designers or doing administrative functions.
HF: How should effective sales managers spend their time?
MS: Professional sales managers should spend most of their time managing sales agents by being on the front lines with them. They understand the sales process. They are willing to roll up their sleeves and do the very things they ask their sales agents to do.
HF: So, how would you summarize the primary responsibilities of a professional sales manager?
MS: First and foremost, the sales manager should provide the technical knowledge, leadership and management skills in order to achieve the budgeted sales goals. Then the following are critical:

HF: While we know there are many more functions a sales manager must undertake, effective management must incorporate time management and establish priorities. What have you observed when working with sales managers?
MS: The main culprit for lack of effective sales management is misuse of time. In all too many cases, the persons charged with this key responsibility are not ready for the jobs they hold. Some are merely 'caretakers' instead of sales leaders. The way to improve sales performance is by ensuring that your sales manager is focused on managing the sales team first, and performing all other functions in a descending priority. This requires professional leadership abilities as well as results-oriented, hands-on supervision by the sales manager.

Manny Schatz, principal of Professional Builder Services, Inc. in Danville, has been involved in nearly every aspect of home building. He holds a general contractors license, a brokers license, and MIRM certification. In addition to his many professional affiliations, Manny was an associate of The Stone Institute, and worked closely with the late Dave Stone. For further information, contact Manny Schatz at (925) 837-1937.

 

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Broker Programs 201

In the last two editions of The Home Front, I have tried to pass along some experiences that I've found successful in adding volume/velocity by using brokers. My personal attitude is that I will never allow Realtors to determine our success . . . only to add to it. Below are some more thoughts that homebuilders might try. If you'd like reprints of earlier articles, give me a call or an e-mail. Next edition will be the last on this topic for a while: Broker Programs 401, The Final Word.

Whenever we do have the more typical Broker Opens at our sites, I really encourage the site team, NOT only my marketing crew, to invite their favorite agents and secure an RSVP. Realtors are more likely to turn up if the have given a personal commitment to Michael and Carolyn at Haskell Canyon. It's more compelling than our best brochures. For the two weeks prior to the event, the site team has the flyers on hand and will personally hand them to any agent that we want to attend. We ALWAYS invite all the moved in neighbors . . . even if they moved into a competitor's home in a Master-Planned Community. I want lots of people. Any suspects driving by will come in to see what's going on, and may become prospects simply by the urgency created by crowds.

There is never an excuse for mailing an agent's check. I actually prefer to NOT have it sent from Escrow. More will be accomplished by a hand-delivery by my staff, or the site sales crew. Or think big. Spend the money and send via courier.

Always, always get business cards. Realtors often change offices. Area codes change. Cell numbers change. E-mail addresses change. Franchises change or independents join a franchise. Stay current. Use these cards to build a data bank for pre-opening information, for getting competition data, for recruiting, for agents that can represent our buyers when they have a home to sell. Each sales office should have at least a couple of full Rolodexes of agents' cards.

In the course of building a data bank of information, we always tried to establish the date and time of the Realtors' sales meeting. Once we had that information, we could use it to advantage when an outside agent sold one of our homes. We made an effort to reward cooperating Realtors by sending a cake or balloons to the office in order to be delivered during the sales meeting. The co-op agent gets some recognition and we get an opportunity to reinforce the sale, to sell our brand and to remind agents how easy it is to sell our homes. With more 100% Realty offices, not every office has a mandatory sales meeting but this is an opportunity in some situations.

As I've built some relationships with agents, sometimes I've been able to attend sales meetings at their office. If we are having a dusty shoe event, I'll volunteer to come back for a future sales meeting, in front of all, and shine shoes of anyone who sells a home during dusty shoes. They love bringing in their worst, dirtiest shoes, but it only happens if they have helped me with my goal. I've had similar success in betting a hand car wash in front of their office for certain accomplishments. Selling a certain home. Most sales in a given period. First sale in a phase, etc.

Have some fun and don't take yourself too seriously. Every thing you do, as a senior M&S executive, says volumes about your brand, your homes, and your attitude. Remember, if you have a very aggressive Realtor program, you'll still be victimized by the 11th hour agents. By building relationships in the broker community, you have the credibility to avoid caving into the threats of blackmail, if you refuse to pay an agent who demonstrably did NOT do her job. She'll promise to say how horrible you are to agents etc. If you have built a relationship of respect and trust, your refusal to cave in will be seen as appropriate. You would not demean the hard-working Realtors by paying one who could not even perform the barest minimum level of service.

Most homebuilders hate the process of selling off furnishings from merchandised models. Too time intensive. Staff compete with customers for first picks, etc. However you handle this, try to include your broker supporters as priority invitees.

By the way . . . aren't your sales crews often frustrated by the outside agent interposing, and suggesting that the prospect (her client) refuse to fill in your registration card? Try this. Train your sales team to make eye contact with the prospect . . . but talk to the Realtor . . . Smiling all the while . . . "In order to properly protect your agency relationship with your client, we need to fully identify who your client IS. Won't you please help us to acknowledge who your client is? " Then proffer the reg card to the buyer. How can the Realtor now refuse?

We really need to protect many Realtors from themselves. How ironic that we also pay them at the same time.

Having said that, we are the world's prototypical entrepreneurs. We are all about risk mitigation. And sales. And schmoozing. And performance. Even if we have to drag the Realtors all the way to the bank!

Dave Harding CMP is Vice President of Western Pacific Housing in Los Angeles. He is a nationally accredited trainer of new home sales professionals and the owner/author of a number of leading sales training courses. He can be reached at 310.665.3750 or at dharding@wphi.com.

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The Holiday Spirit

This past year has challenged all of us to reflect on our lives and in terms of the tragic events that occurred. We all need to take time during the holidays to not only celebrate the season, but also embrace the friends and family in our lives.

I want to pass along some excerpts of a memorial speech from an individual who was directly affected by the events of September 11th. Many of you might be familiar with the speech, but I felt it bears repeating some of what this eloquent young man had to say. There is a lot of talk about fear right now in our country. These fears are the ones that keep walls between people. I want to talk about the ways in which it seems we are letting go of some fears. Fears that keep us from truly living life and from experiencing the love we need and deserve.

People from coast to coast are taking the time to tell their friends and family how much they truly love them. The walls we build between us seem to have, at least temporarily, fallen.

Here is my challenge to you. The challenge I am giving myself. I challenge you to not necessarily be fearless but to recognize your fear and to act anyway. To take action and make the most out of every single day. To not let fear of failure keep you from trying at all. To not let fear of rejection keep you from showing up every day of your life.

LeBlanc & Associates wants to wish each and every one of you the happiest of holiday seasons. May the year 2002 be our year of making the most out of every day.

 

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The Eyes Have It

Even with the best product in the best of markets, success ultimately relies on the quality of representation in your sales centers. In our Video Profiles, we capture your agent's entire sales presentation through the eyes of the buyer. Get the whole picture. Managers and agents are able to see what our evaluation reports have reported. Denial of the report is eliminated. Training. Use a Video Profile from LeBlanc & Associates to show your best sales agents demonstrating their selling skills. Quality. Our company has established itself as the premiere sales agent evaluation company in the building industry. Our expertise in the housing industry enables us to suit your needs and provide you with a quality video. Technically speaking. All work is done in-house so that we have direct control over the entire process. With our state-of-the-art editing suite, we can offer the best evaluation service in the industry. Give us a call! LeBlanc & Associates 800/838-1779

 

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