Did you Miss the International Builders Show? Here’s a Shortcut for the 7 Best Ideas from the 2010 show…
January 25, 2010 by Coach Rick · 1 Comment
Did you Miss the International Builders Show? Here’s a Shortcut for the 7 Best Ideas from the 2010 show…
I returned from the International Builder’s Show in Las Vegas last 
Friday at 1:20 in the morning. It rained for 4 days in the desert causing delays at the airport.
The weather inside the convention center, however, wasn’t all rain. There were some beautiful sunny ideas. Here is a list of the 7 best thoughts from the show. Enjoy!
~Rick
The Best of the Best
J Van Rose Jr. of Rose & Womble Realty New Homes Division on the key traits of salespeople in today’s housing market…
“In the 1980′s salespeople had to be great at finance. The 1990′s required salespeople to create value and from 2000 – 2005, after 9/11, we needed to build trust,” said Rose.
“Beginning in 2006 the best salespeople are the one’s that can solve their prospects problems better than anyone else.”
Right on Mr. Rose!
Tom Richey of Richey Resources commented on what type of training salespeople should be focusing on…
Brian Flook of The Brian Flook Group commented on how it’s more important to have quality names in your database vs. quantity.
This reminds me of a quote from another trainer…
Set a goal to build a list of 100 Qualified leads and make sure you know everything about them and they know everything about you and your company.
Mike Lyon of Do You Convert had 4 great ideas…
On how fast to follow up with e-leads…“5 minutes or less. Try to get back to them when they’re still on your website.”
Mike also commented on what percent of e-leads are viable, “80% won’t do anything so don’t get frustrated.”
On how long to follow up with leads…“Most salespeople don’t follow up for more than 1 month. Most buyers won’t buy for at least 3 months. Make sure you have a dedicated 12 week follow-up program.”
On social media…“Focus your social media efforts towards Realtors. Most of them are already using social media and will follow you or become a fan.”
Honorable Mentions
Myers Barnes of Myers Barnes and Associates was as dynamic as ever. He has been one of the most motivational and educational mentors of my past.
Jeff Shore of Shore Forrest did some great presentations and always has a unique and fresh perspective on the housing market.
You can watch a short video courtesy of Mike Lyon on Jeff’s perspective below
Happy Selling!
P.S Have you downloaded your FREE E-guide, “6 Secrets to Maximizing Your Home Sales in any Economy Revealed.”?
All you need to do is verify your email address and you can download it right away. The guide is loaded with best practices from the top builders and remodelers in the country.
Rick Storlie has been helping home builders and remodelers maximize their sales since 1992. Get your FREE e-guide, “6 Secrets to Maximizing your Sales in any Economy Revealed by visiting www.NHSalesCoach.com.
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The #1 New Home and Remodeling Sales “Killer” and WHAT You can do to Keep it from Happening to You
January 22, 2010 by Coach Rick · Leave a Comment
The #1 New Home and Remodeling Sales “Killer” and WHAT You can do to keep it happening to you
Have you used it too?
I was reading a comment to a question posed on the National Association of the Remodeling Industry (NARI) and saw a response that blew me away. As I gave my response, see below, I wondered how many home builders, remodelers and new home sales specialists have uttered this response too. If you have, my friend, the end may be near…
This was the question…
“We’ve all heard the phrase ‘it’s the economy
stupid’. But is it really or have we all created
some of our own hurdles to overcome as well. If
so what?”
This was one response…
“We all contribute to the state of the economy, and as consumers we are now keeping us in this situation by expecting to pay 30% less for everything we want. We need to be willing to pay a fair price for goods and services; until we do, companies will not be profitable, which means they will not grow; hire or spend money.
I actually heard someone say that they thought they had been ripped off last year because they paid more for something they bought again this year for less. 30% is the difference between just paying the bills and being profitable for many businesses. Offering huge discounts cannot go on for ever; it is not a sustainable business model.”
Here is the answer (I believe) we all need to hear but don’t want to…
Actually offering huge discounts is a sustainable business model- and the largest company in the world, Wal-Mart, uses it. I’ve studied Wal-Mart (read the Wal-Mart Effect and Made in America for an in-depth look at this company ) and have followed them through this recession. They’ve been able to maintain sales (and grow) plus keep their margins.
What we all need to realize, as consumers, is that we seek out the cheapest reliable alternative. As soon as we find a company that will provide a “commodity” product or service (think Wal-Mart) that we feel is reliable, we look to pay the cheapest price.
I’ve found that most remodelers and home builders believe what they do is special simply because their name is part of the company. The fact is consumers don’t see the distinction and many markets have a lot of very good remodeling/home building companies to choose from. When consumers find 3-4 “reliable alternatives” the point of differentiation is price.
Many products and services we’re 30% overpriced in years past because the market didn’t challenge us to innovate (plus money was cheap and people thought they couldn’t go wrong putting it into real estate). If you think consumers will go back to paying 2006 prices just because they want to make sure your business turns a profit- you better get in the bread line.
The only way to make our margins and grow our business in this economy is to be the “orange”. That is, provide a 
product or service that can’t be compared to the “apple” competitor. Specialists always make more in every industry.
Example: One of my clients opened up a specialty business that focuses on providing high design, high service remodeling projects in a 10 day period. Through simple internal innovation, they reduced the project time by 66%, cost by 58% and increased margins by 5%.
Most design/build firms don’t want these small projects and out of work builders can’t provide the service and design appeal these customers demand. It’s a niche. Not every consumer wants it but those that do make their choice based on factors outside of price.
If you can’t explain your market position/unique selling advantage to your prospects in one sentence you will always be compared to the cheapest reliable alternative.
To answer the original question, how many remodelers and home builders are as good at marketing as they are at building? If we’re going to make it in this economy it’s up to us. “If it is to be it’s up to me!”
Unless the remodeling and home building activity in your market has gone to zero, every remodeler/home builder has the opportunity to position their companies to take a part of that market. Many old markets HAVE dried up but just as many new ones have opened up.
Get some great ideas on how to do this from my free e-guide, 6 Secrets to Maximizing Your Sales in Any Economy Revealed. Click here to download it>> (it’s free!)
Prosperous times conceal genius. Adverse markets reveal it. Now go out and make it happen!
Happy Selling!
~Rick
Rick Storlie has been helping home builders and remodelers reach their sales goals since 1992. Visit www.NHSalesCoach.com to get your free e-guide 6 Secrets to Maximizing Your Sales in Any Economy Revealed
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Protected: March 6th Builder 20 Topic Questions
January 15, 2010 by Coach Rick · Enter your password to view comments.
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“Is it the Market or Is It Me?” How to Make Maximum Sales in Minimum Time in a Battle-Hardened Housing Market
January 13, 2010 by Coach Rick · Leave a Comment
“Is it the Market or Is It Me?” How to Make Maximum Sales in Minimum Time in a Battle-Hardened Housing Market
This is THE question- isn’t it?
What’s the answer?
Two remodelers and a home builder contacted me last week asking the same thing and here is the answer I gave them- one that you may not expect…
~Rick
Is it the Market or Me?
I was speaking with Mike from Michigan this morning- a second generation remodeler who does NOT operate in the Detroit market.
Mike explained his situation- a situation that may be similar to yours. His business is down over 85% from its peak. He had to lay off most of his staff and is now doing everything himself.
Mike read my blog post on the importance of appealing to women in order to increase your sales. He could relate to the mistakes I had made and now his question was, “Is it the market or is it me?”
Your challenge in 2010
Your challenge in 2010 is no different than Mikes. I’ll bet you’re operating with less staff, have been forced to cut your advertising budget and seem to be constantly competing on price.
For most of you there are less people buying, building and remodeling homes in your market. There are less builders and remodelers you have to compete with but the ones still operating are pretty darn good.
You’re probably working longer hours and making a lot less…
This still begs the question- Is it your market or is it you?
The Answer
The answer is both.
Your changing market is to blame for your sales being off (aren’t I a genius to figure that one out!). Yet, the fact that you have been relying on the market to bring business into your company is your fault too!
“Wait a minute Rick…I’m working harder today than ever before. The business just isn’t there!”
You’re partially correct. You ARE working harder than ever before but are you looking in the right places for the business?
Is it the Market?
In my discussion with Mike I asked him how many other remodelers there were in his market. He told me 2-3 (at his level) but there were also home builders that were now remodeling (surprise surprise).
I suggested he visit the building inspectors office and get a list of permits from 2009.
The first step in identifying if the market is your problem is asking the question, “IS there a market for what I am selling?”
I suggested to Mike he take a look at the type of work being done in his market.
What type of remodeling projects were people building?
How many new homes were built? Where were they built and at what price point?
Assuming there is a market for your services, the second question is how do you get MORE of it?
Getting More Market Share
Now here’s an oxymoron for you- in order to get more market share you need to focus on doing less.
What?
You read that correctly. In order to get more market share you need to focus on less.
I’m not telling you to stop what you’re doing right now. I’m playing devil’s advocate and asking (as a consumer), ‘why would I choose to have you build or remodel my home?’
Unless your company is positioned to specialize in a certain geographic area, lifestyle offering or demograhpic/psycographic profile- you’ll come across as a jack of all trades and master of none.
To use an analogy, if you just had a heart attack would you want to see a general practitioner or a cardiologist? Of course it’s the heart specialist! And was your decision based on who costs less?
When you’re company is positioned as a specialist people will seek you out for more than just the lowest price.
3 Steps to Determining if it’s Your Market or if it’s You
Step 1: Review building permits and MLS sales for your market. Are people buying what you’re selling?
If they AREN’T buying what you’re selling can you offer something different or can you move to a different geographic market where they are buying?
If they ARE buying what you’re selling but you have a low market share, go to step 2.
Step 2: Specialize, specialize, specialize! If you’re in a small market and can’t move, you may need to specialize in 2-3 things.
The key to specialization is understanding your target market’s problems better than any of your competition. More on this to come at a later date…
If you HAVE a market and are perceived to be a SPECIALIST- go to step 3.
Step 3: Focus on Managing Tasks- NOT Time.
There’s no such thing as time management. We all have the same amount of time in a day.
Because you are doing more with less, are you focusing on the things that will get you your next sale? With all the extra duties you’ve taken on, you may have lost focus working ON your business vs. working IN your business.
Most people tend to spend the majority of time working IN their business. That’s where their comfortable- working on tasks they know.
But these tasks aren’t the same ones that will bring your next buyer in the door.
What you need to focus on each day is the tasks that will lead you to your next sale.
Over the last 20 years I’ve broken down these tasks into 3 categories- Preparing, Prospecting and Presenting.
You can download “Task Management for Housing Professionals” for FREE with the link below…
Download the Task Management List Here>>
Thoughts, questions, other ideas? Tell me what you think by leaving your thoughts at the bottom.
Happy Selling!
P.S. I’ve seen salespeople triple and quadruple their sales using this task management system…even in this economy. It’s FREE and it’s up to you to make it happen. Get the sure-fire tool to stimulate your sales in 2010 and beyond>>
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“Home Builders, Remodelers and Realtors- Discover how to go from Bust to Boom in 2010 with these 3 Sure Fire Tactics”
January 4, 2010 by Coach Rick · 3 Comments
“Realtors, Remodelers and Home Builders- Discover how to go from Bust to Boom in 2010 with these 3 Sure Fire Tactics”
What’s in store for housing in 2010? Wouldn’t we all like to foresee that!
My crystal ball is in the shop again so I’ve put together 3 tactics that cutting edge Remodelers, Home Builders and Realtors are using to “crack the code” in 2010.
Warning: You will not hear about these iron-clad strategies from others so if you snooze, you lose…Enjoy!
~Rick
Ok- 2009 is over. Great, right? I know this was a tough and trying year. But before we close the doors, let’s look at what was good about it…
- A lot of your competitors are gone and you (the strong) have survived
- You’re efficiency is off the charts because you’re doing more with less
- The market has taught you invaluable lessons and you’re a LOT smarter in January 2010 than January 2009
What the worst mistake most of you made in 
2009?
If there was one mistake I watched most home builders and remodelers make in 2009 it was REACTING to the market.
When you react it usually means two things-
- Sales are down and you make a move to step them up. Usually this means you cut prices.
- When you do make a sale, margins suffer.
Very few predicted the full extent of how much our market would change in one year…Don’t beat yourself up if you reacted to the market for most of ’09- it was a very difficult mistake to avoid.
So What’s Your Strategy to Ignite Sales This Year?
You’re smarter, more efficient and have less competitors.
If you’re going to get PROACTIVE you need some sure-fire tactics.
Here are 3…
1. Focus and Filter: Diversifying is NOT, I repeat, NOT the answer! Every other industry out there has specialty companies that target a certain demographic and psychographic profile. Very few in the housing industry do. We’re all trying to sell the same thing, the same way- yet we tell our prospects, “we’re better.” It’s no wonder we’re frustrated by price wars.
When money is tight consumers take longer to shop and will choose the companies they feel are best suited to solve their problems. Only about 10% of consumers will buy purely on price. The other 90% buy on emotional perceived value.
If you want consumers to choose you for what you are (and make a buck at doing it)- you can’t be everything to everyone.
The micro market (small niche business) section of our economy is poised to boom (and certain sectors are already booming!). The housing industry needs to take the lead from companies like Target, Best Buy and Ford. All of these companies focus on niche offering to a specific target market.
Focus on what you do best or focus on an un-served niche in your market. Filter everything else out- especially the sacred cows!
This is also called Market Positioning and you can discover how to do it by clicking on this link>>
2. Beware of Baby Boomers: I know, I know- you’ve been told that you should be targeting boomers- this is where the money is, right? This is where the money USED to be and this group may have the lowest consumer confidence.
Consider…
- Boomers are getting old (the oldest are turning 64 this year) and they don’t have a lot of time in the workplace. They’re not willing to take on large mortgages and want to do lateral moves as they consider down sizing (which doesn’t work because their current home has lost so much value).
- The dreams of early retirement and staying young forever are fading. Boomers lost an incredible amount of wealth last decade, have burned through a lot of savings and won’t be able to replenish it quickly.
The Exception…
Remodelers take note- aging in place along with certain remodeling projects will start to appeal to boomers because they will find themselves unable or unwilling to move (along with the acceptance they are getting old).
3. The Decade of the Woman: Over the last 30 years a woman’s role in buying, building and remodeling homes has grown to where she is now 80% – 91% of the primary influence.
Couple that with our current job market. Approximately 72% of the job losses have been men due to the high percentage of construction and manufacturing jobs shed.
There is no doubt that as this decade plays out women will not only continue to be the emotional decision makers- they will also take a larger role in the financial decisions of the home.
What are your predictions for 2010 and beyond? What tactics will the new and rebuilt home builders, Realtors and Remodelers be using to unleash sales?
Share your thoughts below…
Happy New Year & Happy Selling!
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The 5 Stages of the Home Buying Process- You Can’t Afford to Miss Them…
January 4, 2010 by Coach Rick · Leave a Comment
Happy Fall to you! As a hunter, there’s no better time of the year. I just got back from my first grouse hunting trip with my 9 month old dog Bentley.
We flushed a few birds but didn’t put any in the bag. We DID, however, scare the you know what of out some Chipmunks and Tweedy birds!
~Rick
The 5 Stages of the Purchase Process
If you missed Part I (Kick-off & Research), you can click here for the article>>
According to Marti Barletta, author of Marketing to Women and PrimeTime Women, when men and women buy as partners, women control at least four out of five stages of the purchasing process (well really all 5 but us men need to get our egos stroked a bit 
.
Stage III- Purchase
If there’s one area of the purchasing process where we feel men are in charge, this is it. Why?
Historically this is where the “man” takes over as primary contact and negotiator.
It’s why we get confused as marketers…
…that men are the primary influencers in the decision to buy.
We get confused because it was her idea to move or remodel in the first place (Stage I) and she did all the research to find your company (Stage II).
Doesn’t it seem like you work and work with her and when it comes time to write the purchase agreement “Mr. Negotiator” steps in?
The question I ask all my clients in this situation is this, “Is she on board?” If they say ‘she is,’ he’s just trying to get the best deal.
In this situation stand firm on your negotiation. Give him something to make the deal happen- just not the farm!
Click here for a sales process that will have her selecting you and your company>>
Stage IV- Ownership
She’s back in the saddle again! The post purchase stage has her making selections, finalizing design, dealing with construction details, etc.
This is where your staged guest experience comes in. If you aren’t proactively staging a “Nordstrom’s” type customer experience you’ll let her down, and you can’t afford that…
…because the ownership stage leads us to…
Stage V- Word-of-Mouth
OK guys…this is where we get BURNED.
Contrary to popular belief, women are NOT as likely to give a referral as a man. Women tend to keep personal and business separate.
Therefore, women need a GOOD REASON to give a referral and that reason is how they were treated in the ownership stage.
Your goal is to CREATE experiences and strategically handle problems so your female customers have plenty of good reasons to refer you, thus influencing your next buyer.
And the purchase process begins again…
Use this link to get the ONLY new home and remodeling sales system designed to appeal to a woman>>
Happy Selling!
P.S. Don’t fall into the trap of buying into the same old “re-tread” sales training. Today is different. Consumers are different.
