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.

7 New Home Closing Experts Share Their Best Closing Strategy

Here’s  a quick read with 7 ideas you can use to help your closing process today!

Happy Selling

~Rick

http://www.housingzone.com/probuilder/article/CA6718962.html

“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-

1. Sales are down and you make a move to step them up. Usually this means you cut prices.
   
2. 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.

Find out how a group of home builders and remodelers are making their companies more appealing to women (and adding to their bottom line)>>

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!

My brother is home on leave from Afghanistan and father is up from Florida so we snuck away for a quick grouse hunting trip.

I’ve been hunting grouse for 30 years and tried something different this time…something that is a valuable lesson for everyone in the housing industry…

~Rick

Follow the Red Lanterns

It was this very quote I was thinking about on my last grouse hunting trip. For years I’ve pretty much hunted grouse the same way- get into the woods and WALK.

I’d spend 5-6 hours a day walking trails for grouse with many times not even a “flush,” hearing or seeing a bird.

This year, I tried something different…

Instead of focusing on the amount of time I would spend in the woods WALKING, I would spend time before the trip RESEARCHING the type of cover where grouse like to “hang out.”

This led me to the red lanterns (see the photo above).

Red lanterns, to an avid grouse hunter, are dogwood tree berries. In the early to mid season, grouse love to feed on these berries. The theory is, find the berries and you will find the birds.

My research focused on finding these trees even if it led me off the “beaten trail.”

My first afternoon hunt I got into the woods around 4:00. The first trail I walked had some nice young aspen trees (another grouse favorite) but lacked the “red lanterns” I was looking for.

I tried a different trail and soon began to see red lanterns. My young and incredibly inexperienced Red Setter Bentley and I began to move off the trail and into the areas of these dogwood trees.

A wind storm and ice storm this year made the walking incredibly difficult. There were down trees all over the place in addition to the thick cover already present.

About 30 minutes of walking through the thick forest I heard a series of incredibly fast wing beats…Bentley and I had our first flush!

The same thing happened a few minutes later- another flush but no opportunity for a shot.

We continued to walk around the dogwoods until the lack of daylight encouraged me to turn around and head back to the car. I was silently congratulating myself for the 2 flushes when I heard another bird flush over my right shoulder…

This time I not only had a visual, the bird had flown into a small clearing where I had a shot. I got lucky and downed the bird. Bentley found the bird in the forest and he had officially retrieved his first grouse.

This bird flushed right out of a tree- a dogwood tree that is…

Your Challenge

Thinking about this experience I couldn’t help but look at the similarities of what has happened to the housing market over the last 5 years…

• Walking the same trails gave me a great workout but wasn’t leading me to birds. Are you taking the same path in your business and are you finding the buyers you’re looking for?

• Sitting in front of the computer and researching grouse cover wasn’t much fun- but it made all the difference when I went into the woods. Are you taking time each week to work ON your business and find new avenues for attracting buyers?
  

• Moving off the trail and into the woods was tough. It would of been a lot easier to stay on the trail for an easy walk but that’s not where the birds were. Changing how you attract buyers is tough at first too…you’re not used to it and it’s much easier to go back to what you know.

• I spent 2.5 hours walking through and over some of the thickest cover you can imagine to bag one bird. Today, you have to not only arm yourself with the knowledge, strategies and techniques to find buyers- you have to remain persistent to find those few buyers out there.

I wrote the Ultimate System for Attracting Home Buyers to give you all the tools you need to find today’s home buyers.

My client’s are consistently using these strategies to find buyers today, in every type of market, from entry level to luxury.

Get your copy of the Ultimate System for Attracting Home Buyers by clicking here>>

Happy Hunting AND Happy Selling!

P.S. If you don’t want to start changing the way you attract buyers today, no problem.

Just remember, the time will pass anyway…

You can spend your time implementing proven strategies to get more buyers or spend your time “walking down the beaten path.” It’s your choice…

Make a difference and start today>>

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>>

“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.

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

I’ll never forget the feeling I had on that fateful day in July of 2001. I was fairly new to the world or power boating (I say “I”, even though my wife Nancy was the co-owner of our boat, because this was my baby) and was enjoying another great weekend of fun cruising down the Mississippi River.
We were just returning from a weekend trip to Lake City, MN and heading back to the Marina when I saw the tachometer on the port motor all of a sudden rev way up and then die. I pulled back on the throttles and tried to re-start the motor and there was nothing. My worst fear had come true; we had blown a motor and not only would there be an obnoxious repair bill but we were in the middle of boating season and now out of business. My heart sank.
After delivering the boat to the repair shop we got a call from the service manager later that week confirming the news. We needed a new motor and it would take weeks to get one at a cost of about $5,000. Our boating season for the summer was done and so was our bank account (notice now I say “our” when it was time to pony up and fix it). I was officially in a walking depression.
A couple of days later our salesperson from the marina called to offer his condolences and said he had an idea for us. I called him back to inquire on the idea and he suggested that there might be a way to put us in a different boat and the marina would assume the responsibility of fixing our old boat. Needless to say, I was intrigued!
The boat we owned was a 1994 Formula Fastech 303. It was 30 feet long, had a sleeping area, port-a-potty, refrigerator, sink and camper top. We could pull into a marina and hook up to shore power and all the systems would run off of that, saving our batteries. Oh, and did I mention it would do about 67 mph?
Lesson #1: Build value and get the prospect emotionally attached
I showed up at the marina to meet Eric and he took me over to another warehouse where there sat the most beautiful red, white and blue 2000 Formula 353 Fastech. I tried to hide my drool from Eric but I think he caught me wiping my mouth out of the corner of his eye.
Brand spanking new this thing had everything including an enclosed stool with Vac-u-flush (for my wife) and twin 502 motors with about 1,000 horsepower (for her husband). I tried to act cool and looked over the boat and calmly asked, “How much?” He said, “Let’s go back to my office and take a look at some numbers.”
Lesson #2: Logically justify the sale with financing
Back at the office Eric pulled out a spreadsheet showing the trade in for our current boat, the cost of the new boat and some financing. Basically, they would pay off our old boat and assume the cost to fix the motor. Then, they had an interest buy down period for the new boat for the first two years that put our payment only a little higher than our current payment. Plus, the boat had warranties and they would throw in an extended warranty on the motors (do you think that was a hot button for me?).
Lesson #3: Get all decision makers on board
Driving home from the marina I was strategizing in my head how I could convince my wife to be another co-owner of my boat. When I presented the idea to her and went over the numbers I was shot down fast and furious (Eric’s only mistake was showing me the boat without my wife along. She wasn’t emotionally attached). I walked away from her sulking and slipped back into my walking depression.
After about two weeks of pleading and begging I finally got her to agree to come along and at least “look” at the boat. She was a lot stronger than me and thought the boat was ‘nice’ but that we didn’t ‘need’ a boat that big. Of course we didn’t need it. I wanted it!
Lesson #4: If at first they don’t buy, follow up, follow up and follow up again
The next few weeks seemed like years as I watched summer and my boating season slip away. Eric kept in touch with me with different finance scenarios and mailing some brochures over to our home. I could tell my wife was starting to soften and I finally pulled together our family budget and plugged in the new boat payment, showing her we could still live comfortably with our current salaries. Finally, the sweetest words in the world came to my ears one
night. “Alright, if you want your dumb boat, go ahead and get it. Just quit whining!” Nancy said after admitting defeat to my constant barrage.
Step #8 in the new home sales process, justify the sale with finance
The Critical Path to new home sales (in chronological order):

1. Preparation
2. Greeting-Attention
3. Discovery/Needs Analysis- Interest
4. Presentation- Interest
5. Demonstration- Desire
6. Select One- Desire
7. Objections- Action
8. Finance- Action
9. Closing- Action
10. Follow up- Action
11. Due Diligence- Action
12. Referrals- Action

I never would have gotten my new boat if Eric couldn’t lay out a spread sheet showing me it was only a few dollars a day more for my new boat. He used an interest rate buy down to help me get used to the payments and I had two years before my rate adjusted to the full amount. Can you do this with your homes?
The key ingredients to helping your prospects justify owning are:
1. How much house for how little per month. Unless your buyers are paying cash, always work off a monthly investment.
2. Tax advantages. Uncle Sam allows us to write off our mortgage interest and real estate taxes. Find out your buyer’s state and federal tax brackets and show them the savings on a monthly basis.

3. Potential appreciation. Even though many markets are flat, they won’t stay that way for long. Look up the average annual home appreciation in your market and break it down to the month.

Just like I wanted my new boat, your customers want your new home. A top notch salesperson knows the key to selling more homes is getting their prospect emotionally involved first and then help them logically justify the decision. Learn about finance and be ready to show your prospects, on paper, just how easy it is to get the home of their dreams!

Happy Selling!

P.S. The name of this article was the official name of our last boat “SheGaveIn.” A fitting name indeed!