5 Cutting-Edge New Home and Remodeling Sales Strategies Revealed
December 19, 2011 by coach · Leave a Comment
I had a conversation with a builder a while back who made this statement to me.
“Rick, if we put as much effort into selling as we did into building we’d double our sales.”
I was intrigued and asked him to elaborate.
Here’s the story…
On Thursday December 22nd we’re revealing what we did, how we did it and the results. I’ll have both builders on the webinar with me to share their insights and results. Hope you can join us.
What: 5 Cutting-Edge Sales Strategies Revealed: How Two Builders Closed More Sales and Maximized Profits in 2011 [Webinar]
When: Thursday December 22nd at 11 PST, 12 MST, 1 CST, 2 EST
Register: https://www2.gotomeeting.com/register/276947682
Cost: Free but limited to 100 people (as of today there’s about 25 spaces still open)
Happy Selling!
~Rick
Related Posts:
Selling Homes & Remodeling Projects Like You Build Them: 5 Cutting-Edge Sales Strategies Revealed
December 14, 2011 by coach · Leave a Comment
I had a conversation with a builder a while back who made this statement to me.
“Rick, if we put as much effort into selling as we did into building we’d double our sales.”
I was intrigued and asked him to elaborate.
“We break our building process into 5 phases,” he explained. “It’s very detailed, intelligent, automated when possible and we constantly measure our effectiveness as it relates to margins. I want to do the same thing with my sales. Here’s my idea…”
I’ve got to hand it to this guy. He’s got some great, cutting-edge ideas. Here’s his story. Enjoy.
The Background
The first thing I wanted to know was the 5 phases he uses to build his new home & remodeling projects.
“The first phase I call Foundation,” he said. “In other words, we don’t turn a shovel of dirt until I know everything about this job. The more I know before I start, the less problems I have, the client is happier at the end and my margins are higher.”
“Ok, that makes sense. What’s phase two?” I asked.
“The second phase is Framing. We’re building the infrastructure for the finishes,” he noted.
“That’s simple enough,” I commented. “What’s next?”
“Phase three is Finishes. This is where we personalize the home for our clients and their vision starts to become a reality,” he added.
I told him as a salesperson I always love this phase because this is where the buyers really fall in love with their home. “OK, what’s next?” I asked.
“Fourth is the Closing phase. It’s where we make sure every punch list item is complete or dealt with and the clients sign off on the job,” he explained. “I want to make sure this job leaves production ‘clean’ so we don’t drag unresolved issues into our warranty process.”
I told him I agreed and felt this is the most stressful time for buyer, salesperson and builder.
“What’s number five?” I asked.
“Number 5 is Analysis. After every job I review any variances from the schedule and estimate and figure out why they happened. Variances cost me money. My goal is to make sure they don’t happen again,” he said.
“That’s smart,” I told him.
“Now for the big question. What’s your idea for translating this to your sales process?” I inquired.
Here’s what he told me.
“First, we need to build a better Foundation with our prospects. We’re not connecting consistently when we first meet them and I think it’s costing us sales,” he reflected.
“Second, we’re not Framing a consistent communication stream. I want to be our prospect’s preferred source of information on new homes yet I don’t have the time or know-how to provide consistent follow-up and information,” he said.
“Third, we’re not Finishing or Personalizing our sales process. I know we need to make things more intimate for each unique prospect but I don’t know how to do it in an efficient manner,” he explained.
“Fourth, I’m a builder, not a salesperson. It seems like me and my salespeople waste too much time doing things that don’t help us Close a sale. It’s obvious people don’t buy the same today as they did a couple of years ago. We need to do things differently. I’m just not sure I know what those things are,” he said.
“Fifth, I don’t have any way of Analyzing our weak points. I can look at a P&L and variance report from a job and pinpoint our weak spots. How do I do this same thing with our marketing and sales?” he asked.
Here’s where he really threw me for a loop…
“Rick,” he said. “I want you to study our building process. We’re damn good at building and remodeling. There’s got to be a way to translate that to our sales.”
“I’d like you to build us a 5 phase sales process that mimics our building phases,” he added. “I know there’s a way to do it and I want you to figure it out.”
That was one year ago.
After a tremendous amount of blood, sweat and tears we did just that. And we brought another builder along for the ride so we could test new ideas faster.
On Thursday December 22nd we’re revealing what we did and the results. I’ll have both builders on the webinar with me to share their insights and results. Hope you can join us.
What: 5 Cutting-Edge Sales Strategies Revealed: How Two Builders Closed More Sales and Maximized Profits in 2011 [Webinar]
When: Thursday December 22nd at 11 PST, 12 MST, 1 CST, 2 EST
Register: https://www2.gotomeeting.com/register/276947682
Cost: Free but limited to 100 people
Happy Selling!
~Rick
Related Posts:
Tired of being beat down on price? Here’s one way home builders and remodelers can get ahead…
December 6, 2011 by coach · Leave a Comment
Rich Elkman of Group Two advertising shared the video below in an email. It’s a great example of the power of differentiation or market positioning.
Market positioning works like this…
- You have a homes to build or remodeling services to provide
- You need a market (people) to buy them
- If these people (your prospects) see your homes and services as “just as good” as your competition, they naturally default to differentiation through price. That is, the lowest price wins.
- You can’t sustain or grow your business by being the low price leader
The phenomenon facing our industry today is called commodification. It’s a word I learned in the book Experience Economy by B. Joseph Pine II and James H. Gilmore. Your homes and services have been commodified by the media, Realtors and buyers themselves.
And let’s face it, 90% of what you do is exactly what your competitors do- so why should a buyer pay more for your services?
That my friends is the question that floats through your prospects minds every single day. It’s the very reason why being in business for 25 years, being family owned and building quality homes does not cut it. Sure it worked fine when there were more buyers than builders. Today, not so much.
Add to it a 30%+ decline in home values, incredibly tight lending standards and a foreclosure epidemic. Why should a buyer choose your homes or pay more for design build remodeling when Chuck in a Truck will work for wages?
And don’t forget, your biggest competitor is used/lender mediated homes…
- Ask any Realtor what a buyer wants to look at first- foreclosed homes.
- Try getting a future value loan for a large remodeling project- 50%+ of the comps are foreclosures or short sales.
I was first turned on to market positioning back in 2007 when I participated in the Woman-Centric program. The Godfathers of market positioning are Jack Trout & Al Reis. They wrote a couple of books that are worthwhile reads. The 22 Immutable Laws of Marketing and Positioning- the Battle for You Mind.
Simply defined, market positioning is creating the perception in the minds of your prospects that your services/homes are unique, special and different. In other words, they can’t be compared to your competitors. You become a big fish in a small pond by appealing to a select group of people willing to pay more for your stuff.
The first step in positioning or re-positioning your business is understanding your target market (and identifying a viable target market). Basically outsmarting your competition. I wrote a book called The Ultimate System for Attracting Home Buyers that teaches you how to do just that. AND, I’m offering you a holiday savings coupon too- 20% off. That will give you free shipping plus take another $10+ off the book. Just use the coupon code gdctrial2011.
Enjoy the video.
Happy Selling!
~Rick
P.S. My 20% off Holiday Special expires on December 25th. So go ahead and buy yourself an early Christmas present here > >
Remember to use coupon code gdctrial2011 at the checkout.
