Advanced Home Builder and Remodeler Negotiation Techniques Revealed…

I had this elaborate idea of a “goof” email I was going to send you. But, after testing it on some family members I decided to “come clean”.

A client of mine sent me a video link with the words “Good video on negotiation techniques.” Last Friday when I was catching up on my email I decided to watch it.

I was poised to learn some new ideas and share them with you. As I watched the video I was studying the technique of the presenter and taking notes.

Then I got to the end…

I thought I was going to pee my pants laughing.

The video is, you guessed it, 2 minutes and 40 seconds. And couldn’t we all use a good laugh?

Enjoy!

P.S As much as I study women’s buying behaviors as they relate to housing decisions I’m a bit perplexed why my wife didn’t find this funny…

P.P.S Don’t forget to check my resource page for updates. I’ve been adding some great stuff.

Use this link to search for FREE strategies you can use>>

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.

Taxi Cabs, Mexico, Selling New Homes and Remodeling- What do they have in Common? A Discussion We All Need to Have…

So here’s the scoop…I was privileged to be invited by NAHB and a Builder 20 group to speak – in Cancun. Yes you’re right, not a bad gig if you can get it!

Here I thought I was coming to Mexico to educate home builders on sales and marketing. Little did I know I would become the student, not the teacher.

It all started when we arrived at the airport and needed a taxi. What followed was the most beautiful example of a multi-step sales process (the same process YOU need to be using) that I have EVER seen…Enjoy!

~Rick

My wife Nancy and I decided to add a few days to the trip for some R&R WITHOUT kids. We arrived at the airport and proceeded through immigration and customs. Our next task was to get transportation to the hotel.

Engage

As we walked we were greeted by a helpful young man who escorted us to Jeanie- a person who could help us get a cab.

Jeanie spoke excellent English and quickly advised us on which cab service to use and how much we should pay (using the wrong service could double our fare!).

After she took care of our cab ride she switched the conversation to our hotel- namely, where we were staying. She asked us if we had been to Cancun before and how well we knew the area. It had been 13 years since our last visit so we welcomed her information.

Establish Trust and Credibility

Jeanie pulled out a map of the Cancun hotel zone. She showed us where our hotels were. Next she pointed out the airport location. As she is doing this she begins making notes with a black marker.

On the edges of the map were photos of different activities. Her next question was, “We’re you planning any activities while in Cancun?” Nancy told her she wanted to swim with Dolphins.

Jeanie flipped over the map and on the back was sample prices of what you would pay for each activity if you booked it through a hotel. Jeanie asked, “Would you be interested in picking as many of these activities as you wanted for $50 per person?”

Lifestyle

Jeanie explained to us that the #1 resort in Cancun (she didn’t disclose WHERE that stat came from!) was celebrating 25 years in business this year. The resort’s goal was to introduce as many people to it as possible.

She told us the resort was offering 3 benefits to everyone interested (she wrote these benefits on the map as she explained them).

1. Unlimited activities for $50/person.
2. A full day at an all-inclusive resort- FREE
3. Two 30 minute spa’s- FREE

All the resort wanted us to do was stop by on Saturday for a 90 minute breakfast.

Be Proactive

I told Jeanie that I couldn’t attend Saturday because I was presenting all day. She asked if Sunday would work and I told her we were switching hotels so I wasn’t sure.

Jeanie quickly came up with an idea. Her resort would pay for a round trip taxi. To save us some money, the cab could pick us up at our old hotel and bring us to the new hotel. I knew we had some downtime between check out and check in and thought this would work fine.

I asked her one last question, “Is this a timeshare presentation?” She showed me a receipt from her resort that specifically stated, “This is not a timeshare presentation.”

Controlled Release of Information

To get the activity passes we had to pay for them at the airport and PICK THEM UP at the breakfast. We were given the map Jeanie had made notes on and she asked us to plan which days we wanted to do each activity.

The Sales Environment

On Sunday we arrived at the resort and met Hector. Hector had breakfast with us and showed us the resort. It was gorgeous. Hector showed us the grounds, common areas and suites. I had fun talking to Hector and at the end of our time together he took us into a “closing” area of the resort.

The Rest of the Story…

The resort wasn’t selling timeshares- they were selling a vacation club (as far as I can tell it’s about the same thing). For those of you who have been to time share presentations before you know the drill.

As we went through the process, I asked Hector what his conversion rate was. His answer? 30%- He closes 3 out of 10!

What if resorts sold timeshares and vacation clubs like we sell new homes and remodeling?

Can you imagine my reaction if Jeanie would have handed me a brochure and asked, “Are you thinking about joining a vacation club?” Her conversion would be about 0 out of 10!

Yet isn’t that how we try to sell new homes and remodeling services?

We try to generate as many leads as possible and ask all of them if they are ready to buy…How well is this working for you?

One-Stepping

A one-step sales approach is where you ask your prospects to become a buyer in ONE STEP. You advertise…”Call, email or stop by if you’re in the market for a new home?” And guess what- the phone doesn’t ring too often, does it?

The question you have to ask yourself is- how many people are you talking to that are INTERESTED BUT NOT READY? You probably talk to hundreds like this each year.

Your Sales Funnel

The resort in Mexico had painstakingly developed a sales funnel that converted 30% of their prospects. It started with a taxi ride and offering knowledge of the area.

They know people are shopping differently today. They changed their sales approach.

As you might have guessed, your sales process needs to change to. You need to develop a multi-step sales funnel needs that includes the following areas…

The hook. The hook has nothing to do with your solution (your new homes, lots or remodeling) but has everything to do with the problems of your target market.

Believability. Only 10% of adults learn by listening. 45% learn visually and 45% learn kinesthetically (learning by doing.) Yet I walk through countless model homes with no visual aids and no active participation in the sales process. Credibility is established through visual aids (and a model home alone isn’t enough).

Building Value. 90% of what you do is exactly what other home builders and remodelers do. You can’t build value by trying to prove you have better sticks and bricks. Value is only built with the 10% that makes you unique, special and DIFFERENT.

Anticipating Objections. The top 6 objections from your target market should be built in to your sales process. Don’t wait for them to be brought up. Brag about them!

A Reason to Follow-up. The only way you can control the sales process is by holding back key information. You do this to give your prospects a reason to meet with you in the future or follow-up with them.

Your Facilities. Perhaps one of the most overlooked aspects to selling new homes and remodeling services is leveraging the 5 senses. Auditory, visual, smell, touch and taste are powerful subconscious motivators.

Getting the Sale. Rarely are large purchases such as home sold on the first or even second consultation. It can take months and in some cases years from the time you first meet a prospect until they sign on the dotted line.

Developing Your own Multi-step Sales Funnel

This is a pretty complex process and since you’re still reading I want to help you do this. I’ve recorded a short “how to” video that will walk you through this system AND have a guide you can download in my resource area. Of course both are FREE.

You can get access to the “how to” video and guide by clicking here>>

I can’t guarantee you a 30% conversion rate but I WILL guarantee this…

If you’re still using a one-step approach to selling today you’re losing sales to your competitors who have adopted a multi-step approach. It’s just a matter of time before they put you out of business.

Wouldn’t you rather be the one left standing?

P.S This is probably the best resource I’ve added to my free library. It’s a road map of what my best clients are using today. Why not get started today?

Watch the video and get the free guide by clicking here>>

Click here>> and get Rick’s FREE copy of 6 Secrets to Maximizing Your Home Sales in Any Market Revealed.

Ask Rick a question and he may feature it in an upcoming issue of Coach’s Corner>>

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.

As a Home Builder and Remodeler- How do You Move Your Business Forward in 2010? Maybe it’s Time for a New Hammer

No I’m not talking about MC Hammer (but how about those pants)!

Can't Touch This!

It’s getting to be the time of year to look back on 2009 and put together a strategy for 2010.

I hear the same old arguments from people who have ‘been through this before.’ I’m not so sure what worked in the past is the answer to our future.

Here’s an alternative “hammer” you may want to consider to finally beat this housing market….

~Rick

My wife tells me I’m the “ultimate planner”. I tell her she’s the “ultimate live in the moment person.” I guess that’s why we’re good for one another.

A couple of days ago “the ultimate planner” was lying in bed contemplating the future of housing? Specifically asking…

• How will this recession effect people’s behavior as it relates to housing? As it relates to purchasing behavior in general?

• Where are the opportunities today and 3 years from now?

• How will government continue to effect housing in the future?

• If I were a home builder or remodeler what strategy would I employ moving forward?
  

These are not easy questions- nor are they answered in a day. But I have this gut feeling that our industry is still going in the wrong direction.

Specifically- were still trying to use the same old “hammer” to shape the future.

Hammer Time

This morning I received a blog from Seth Godin titled, “Hammer Time” (thanks for letting me borrow the title Seth!).

You can see Seth’s Blog post here

Here’s an excerpt from the post…

“When the market changes, you may be seeing all the new opportunities and problems the wrong way because of the solutions you’re used to. The reason so many organizations have trouble using social media is that they are using precisely the wrong hammer. And odds are, they will continue to do so until their organization fails. PR firms try to use the new tools to send press releases, because, you guessed it, that’s their hammer.”

To summarize the blog- we (companies) are still trying to use our “hammers” (solutions) that we’ve always used.

Build a Better Mousetrap

So what is the contractor’s solution? Build a better home of course. That’s what we do.

We focus on better…

• Home Design
• Products/features
• Built Homes (Green)
• Sticks and Bricks!
  

Now I’m not saying these things aren’t important- they’re incredibly important. I just don’t believe they are at the top of your prospect’s mind.

What IS at the top of your prospects mind, without a doubt, is their own reality- their own problems. Until they feel you understand these problems better than anyone else and can provide a one-of-a-kind solution, they won’t buy from you.

Could it be that your product (hammer) of the future will NOT be the homes you build and remodel….

Rather, you’re product will be your actual customer

What if you spent as much time trying to understand what was going on in the head of your next customer as you did designing & building your next home?

How would you change your approach if you know the intimate details in the mind of your prospect?

My grandparents lived through the depression and I grew up watching how they, along with my father and uncles, were fundamentally changed for the REST OF THEIR LIVES because of it.

How will the current recession affect the housing decisions of the current and future generations? How has it affected you?

Maybe I’m completely wrong but I’d love to get your take on this topic.

Do you think our hammer for the future is the homes we build and remodel or is it something else?

Please post your opinion below (and don’t sugar coat it!)

Happy Selling!

Ask Rick a question and he may feature it in an upcoming issue of Coach’s Corner>>

Multi-Step Marketing and Position Selling are some new buzz words I’ll be talking about August 25th, 2009 at the MN Builder/Remodeler Sales and Marketing Summit.

It’s happening at 2:00 and you can still walk in to register.

Get directions here>>

If you can’t make it, here’s 2 stages of marketing & selling you can’t ignore!

~Rick


Consider this…

• “Women initiate 80% of all home-improvement purchase decisions, especially when it comes to big-ticket orders like kitchen cabinets, flooring and bathrooms.” (Forbes, 2003).

• “Women directly purchase or have controlling influence in the purchase of 91% of all new homes.” (Smith-Dahmer Associates, NAHB IBS).

• “90% of all construction companies are owned by men.” (Bureau of Labor Statistics).

If you’re a home builder or remodeler, or sell for one, you WANT to pay attention to these 5 buying stages…

Discover a new home and remodeling sales system taylored to women>>

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 I- The Kick-off
Who gets the idea, 8 or 9 times out of 10, to change their housing situation?

When a woman isn’t satisfied with her current living situation it stems from problems.

Do you understand her problems better than anyone else?

The consistent mistake I see builders and remodelers making is jumping to solutions before identifying problems. As a man, I know my problems are DRAMATICALLY different than those of my wife.

Stage II- Research
Now that she’s decided to make a housing change, who do you think does the research?

According to the National Association of Realtors, she’s turning online 87% of the time to begin her home search.

And when she is looking at your website she’s looking to ELIMINATE you, not include you. She’s also checking out blogs, social networking and “CROPing”….

“Before women go shopping, they go CROPing, looking for CRedible OPinions,” maintains Kelley Skoloda Partner and Director of Global Brand Marketing Practice of Ketchum public relations.

Do you the best way to leverage the opinions of your current & past female customers?

Do you know what kind of website appeals to a woman?

Are you interactive in social media? Do you know which types of social media will give you the biggest return?

Do you understand what type of knowledge your female prospects are looking for online?

The bottom line is the housing industry has an incredible disconnect with our primary target market….women.

Our male egos lead us to believe we understand women and how to market and sell to them just because we have in the past.

The FACT is the majority of our previous sales were propelled by an unsustainable seller’s market- the same market that is not returning anytime soon.

Like anything, a process can be learned. And for those that do learn a sales system that appeals to women, the results are dramatic!

Use this link to get the ONLY new home and remodeling sales system designed to appeal to a woman>>

Next week I’ll talk about the Purchase and Ownership Stages. Until then…

Happy Selling!

Jack from New York emailed me the other day and wrote…

“I would like to talk to you about how we can revive our companies sales.  Due to the downturn, we were forced to cut staff and go into survival mode over the past several months.

This was necessary, but the downside is, that we are now so tied up in the day to day that we have lost our ability to focus on marketing and selling homes. We need to find a way to shift gears back into sales and marketing and make some sales…..and soon!!!”

Needless to say the first 3/4 of 2009 has been pretty hard on most builders and remodelers.

As I talk to builders and remodelers across the country a consistent phrase keeps popping up. It goes something like this…

Click here to discover the fastest way to kick the door open to new sales>>

How has it been for you?

Are you ready to take control of your sales and marketing, once and for all?

Happy Selling!

P.S When you make a mistake in production you can normally pin point exactly how much it cost you. Have you ever taken the time to figure out how much lost sales are costing you? Believe me, the numbers are staggering.

Get my proven sales system now>>

Helping contractors maximize sales in any market.  The New Home Sales Coach Transformational Sales System for home builders and remodelers transforms dull and boring organizations into extraordinary and remarkable ones.

Click here>> and get Rick’s FREE copy of 6 Secrets to Maximizing Your Home Sales in Any Market Revealed.

Ask Rick a question and he may feature it in an upcoming issue of Coach’s Corner>>

Hi guys!

Here’s Rob Fritz of Custom One Homes talking about how he has sold…

• 2 models
• 5 to-be-builts
• Over 4.5 million in volume
• And he has another 4 plan deposits

…in 7 months-  during a recession.

Rob has some great insight into his sales process and what he is doing different in 2009 than he did in years before.

To find out the specific strategies Rob uses click here>>

Here’s a little Q&A with Rob that we didn’t put on the video…

Question: Rob, what would you say to any home builder or remodeler (or their sales people) that feel like every prospect they talk to is only interested in price, or doesn’t want to do anything, wait for the market to get better, etc.

Rob: “If your company’s niche is to be the low price leader you have to expect people will focus on price. My builder’s position is not a low price leader. I focus on creating a perceived value that is DIFFERENT than the other guy- both as a salesperson and in the model home presentation (home design & the model shopping experience).

If I get asked about price right away in the relationship I shelve that and ask them, ‘first let’s talk about your goals and see if we have what you’re interested in.’ Then I go back into my needs analysis and find out what their hot buttons are. Only when they become emotionally involved do I talk about price.

If people are telling me they want to wait or not do anything I try to find out why they are at the model in the first place? I ask them what they will gain by waiting or what will be different a year from now. If people are out looking there is something that is not right with their current home lifestyle. I try to figure what that is and then help them see the advantages of moving up in today’s market.

I also like to share stories of other people in similar circumstances and how I’ve been able to help them. This usually encourages them when they realize they aren’t the ONLY people wanting to make a housing change.”

Question: You started your new home sales career “self-trained” or really without training. What impact has a proven new home sales process had on you over the last 3 years?

Rob: “It’s given me the confidence to be the guide and leader with my customers and take them down the right path. They (customers) take me off course a lot. With my training I can get them back on course and move the sale forward.

I’ve gotten a lot of discipline from my training. It’s not always fun to study and train but I do what I have to when I have to do it. For instance, closing is not at the end, it’s all along the way. My training allows me to do all the pre-close initiatives I need to in order to improve my odds of closing the sale at the end.”

Question: What would you tell anyone in new home or remodeling sales that has never had any formal training and is intimidated about changing their selling style?

Rob:  “If you’re intimidated to invest in yourself, learn a new sales process and change your selling style you’ll really be intimidated when you have to change into a new industry. I can’t sell the way I used to either. Buyers are constantly gaining knowledge and the market is always changing. I have to change faster than they do and the only way to do that is to constantly grow and improve through training.”

If you want to hear more from Rob and get your hands on the same techniques and strategies he uses…

Click here for the information>>

Happy Selling!

Rick

P.S. If you’re thinking Rob’s working in a really good market or has a distinct price advantage over his competitors- think again. He deals with foreclosures, short sales and desperate builders slashing prices JUST LIKE YOU.

These techniques work! Check them out for yourself>>

This comes courtesy of  Kevin & Monica Ray, Realtors from MissoulaMontana. It’s a great summary of how you should be using photos and videos as part of your Multi-Step Marketing and Selling.

Realtors, Builders and Remodelers more or less use the same photo and video tools to market themselves which makes this a can’t miss article.

Click here for the story>>

“So Just How Will Social Networking Help Me?”

I get this question a lot when I talk to prospective clients about Multi-Step Marketing and Selling. Social networking is playing a larger role in how you sell and market new homes and remodeling services today. In fact, it’s playing a larger role in how every SUCCESSFUL business has repositioned themselves.

To get you started (or maybe you already are), I’m giving away a DVD set and Workbook of my newest course, The Ultimate System for Transforming Cold Prospects into Hot Leads to the next 100 people that become a fan on my New Home Sales Coach Facebook page.

Why would you want to do this?

We’ll, besides the chance to win the manual and DVD set worth $135, I’m posting juicy little tidbits on Facebook that you won’t see in any of my email updates.

Not on Facebook yet?

No problem, just follow this link and set up a profile>>. It takes about 2 minutes and when you’re done, search for New Home Sales Coach and click on the “Become a fan button.”

It’s that easy. Remember, I’m limiting this to the next 100 fans so don’t wait around (I stole this idea from Myers Barnes and he added 100 in a couple of hours!).

Click here to become a fan (and don’t forget to leave me a message while you’re there).

Happy Selling!

P.S. If you win and would like to credit the $135 towards attending yours truly teaching Transforming Cold Prospects into Hot Leads at my next Sales Symposium on Septmeber 1st, 2009, just send me a note and I’ll take care of the details.

Save the date!

Tuesday August 25th from 2-7 pm at…

Becker Home Center in Becker, MN

Hi guys,

Here’s the story behind this Sales Summit…

I’m the chair of the Sales and Marketing Council for the Builder’s Association of the Twin Cities and at our last planning meeting I wanted to offer some “nearly free” training for the home builders and remodelers participating in the fall Parade of Homes and Remodelers Showcase-  (there should be a “SM” behind each of those with a disclaimer that reads, “The Parade of Homes and Remodelers Showcase are service marks of the Builders Association of the Twin Cities and used with permission,” but my blog software doesn’t allow me to superscript. Anyway, now I’m covered!)

We set a tentative date to host a round table training session with some top new home and remodeling salespeople.

Click here to meet Rob Fritz who has sold 4.5 million in new home sales in 7 months>>

Then I traveled around the state in May and found out many other local associations have fall home tours and home shows. I asked each of the home builder association executive officers if they would be interested in offering a summit like this for their members….Low and behold 3 more were interested.

So….we now have 4 different associations participating and planning this incredible event.

Play the video below to get the overview…

Click here for more information and to register for the event>>

I’m bringing in my BEST clients, the ones that are still doing an amazing job of selling in this very tricky market.

The goal of this training is very simple…

We’re going to show you exactly how to Maximize YOUR return on investment when you enter a home tour or home show. You’ll find out how to…

• Set an appointment within 9 minutes of meeting a prospect

• Turn your prospects objections into a sales advantage

• Integrate social media into your follow-up techniques

• Website strategies that will help keep moving a prospect towards a sale

• Ask questions that will get your prospects talking and you on your way to your next sale

You’ll find out the strategies and techniques my clients have used to outpace the market by 50%, 80%, 120% and more.

Register Here>>

Now that’s MY part of this summit. The associations are also adding…

• Staging seminars for empty AND occupied homes. Discover how to present your models or homeowner’s homes for maximum appeal.

• Information stations on how to…

Get more public relations for your company

Utilize social media (Facebook, LinkedIn, Blogging, Twitter and more!)

Staffing strategies for remodelers involved in a home show or tour.

Governmental update with Pam Perri Weaver from the Builders Association of MN

Green selling strategies with Mike Williams, chair of MN Green Star.

As Billy Mayes would say, “but that’s not all! (my wife hates hated that guy. Imagine that…I Loved him!)”

Becker Home Center is providing…

• A beer/wine networking happy hour

• Dinner

• Door prizes (you need to stay to the end to see if you won!)

Plus we have a keynote speaker Charlie Kanan who will be giving an address called “The Boss is Not in the Building,” where he will show you how to grow your business through the art of talking with your customers and prospects.

It’s all happening Tuesday August 25th from 2 – 7 pm. We’re nearly booked to capacity and the RSVP seating ends on Tuesday August 18th. It’s only $25/person!

What are you waiting for? Click here to get signed up!!

Happy Selling!

Rick

If you haven’t heard of Seth Godin I encourage you to find out everything you can about this man. Read his books, watch his videos and subscribe to his blog.

In this clip Mike Lyon of Do You Convert interviews Seth at the Pacific Coast Builders Conference in San Francisco. Seth gave the keynote address and Mike was able to catch him before his speech and ask him this…

“In 2009, what is the number one thing a home builder should be doing to connect with consumers?”

Play the video and listen very carefully to the answer (I promise you it’s not like anything you have heard before)…

Forget Everything You Know…

I see the same old recycled garbage coming from the “so-called” experts in the housing industry.

Let me ask you a question…Do you think the newspaper industry will recover from its current predicament and re-live the glory days? Me either.

Then why do you believe the future of housing  will be any different?

Have you accepted the FACT that the market will not go back to any sort of normal we have known before. This recession, and the way people look at housing, will change things for every generation that is going through it. As Seth states, people might just look at their homes as a place to live rather that an investment and certainly a piggy bank.

In the video clip Seth’s talks about “the low hanging fruit may be rotten.” I would equate that to looking for tomorrow’s sale…. Today!

It’s called one step marketing and selling and it used to work. It doesn’t today.

Use this link to find THE critical path for marketing and selling new homes and remodeling>>

Why shouldn’t you use one step marketing and selling today?

Here’s 4 reasons:

1. It’s company focused. Nobody cares about being your next customer. They only care about what you will do for them.

2. You’re asking the prospect to become a customer in one step. Do people get married on the first date?

3. You ask the customer to give first. Sign the contract or write a check!

4. There is no relationship until the sale is made. Are you waiting for your next customer to walk in your model or call you on the phone?

Discover a sales system that will deliver consistent sales in any economy>>

My next blog post I’ll talk about the system the most successful home builders and remodelers are using today.

You can see a sneak peak of it by watching this video>>

Until then…Happy Selling!

Rick