5 Home Builder Ideas for Generating More Leads During Model Home Hours

Happy summer to you!

I’ve been working with my clients on a recurring problem for home builders and remodelers…

Maybe you’ve experienced it. It’s called “generating qualified leads- in the summer- with a tax credit & low consumer confidence hangover.”

Let’s face it, summer time has always been a challenge for new leads, model home traffic, etc. But with the tax credit ending April 30th many of the housing markets, especially lower priced, have seen traffic/leads nearly dry up.

After reading a great article in the May issue of Realtor Magazine I got 5 great ideas for dealing with this issue. Here they are…

~Rick

How to Beat the Summer Doldrums, Tax Credit & Low Consumer Confidence Blues

If you’ve worked in this industry long enough you may have heard the saying, “You have to make hay while the sun shines.”

Well may be YOU haven’t heard this before but my father grew up on a farm so I got to hear it a lot! Historically the home builders and remodelers have generated the bulk of their leads with spring home shows, home tours and marketing events.

Since about 2006 most of these events are no longer working the way they once did. You’re not seeing the numbers, quality and certainly the confidence at these events today.

As consumers continue to evolve and change our housing market it’s time we did the same. Let’s look at the most traditional way to generate leads- model hours.

Model Hours- Are they still viable today?

In our old housing market we’ve used the retail mentality when it comes to model hours- Be open for the convenience of the consumer. This meant 7 days a week and 6 – 8 hours a day.

Now unless you’re a public home builder and have a large advertising budget to drive traffic- you’ve spent your fair share of time at the model getting skunked. It’s demoralizing to the salesperson and the builder. But what are the options?

Open House vs. Model Hours

“Open Houses That Work,”is an article in the May issue of Realtor magazine that showed how some Realtors were “redefining” this traditional advertising method.

Many Realtors have written off the open house since 9 out of 10 buyers are starting their home search online. But other Realtors are focusing more of their energies on open house with dramatic results.

What if you were to treat your model hours more like an open house?

What would you do differently?

What would be the results?

Here’s my top 5 ideas for increasing leads during your model hours by treating them as an open house.

You can get more specifics for these ideas for FREE by clicking here>>

1. Change Your “Shotgun” approach to that of a rifle. Sitting in your model home 5-7 days a week with no traffic is a recipe for disaster. Instead of focusing on quantity of hours, change to QUALITY of hours. That is, put more time into promoting a specific event that will appeal to your target market. Here are some ideas:

• • Plan 1 special weekend event for consumer prospects each month. Give them a special reason to come out or come back.
  • Plan 1 special weekday event for Realtor prospects each month. Give them a special reason to come out.
  • Spend 12-20 hours promoting and planning each event OUTSIDE of your model. More details on this to come.

2. Leverage the web. Since prospects are searching online get your “open house” event online too. List it on the MLS, Craigslist, any local event clandars (check your local paper), Trulia, Zillow and Realtor.com.

Blog about the event and utilize Active Rain’s Localism tool.

3. Get Your Signs Out There! Try a mix of 20-40 different signs from company branded to hand-made specialty signs advertising any giveaways.

If you can use balloons do it. Helium containers can be rented from most party stores. Check with your municipality guidelines and see if they’re allowed attached to signs.

4. Use Partners and Themes- Give Realtors and consumers a compelling reason to stop by. You have dozens of local businesses to partner with and cross promote your open house events. Start attending the local chamber events and meet these people. Look to suppliers and manufactures to help too.

5. Make it Memorable- Now that you’ve got that prospect at your model how will you make it memorable? What kind of experience will you deliver? Why would they leave their contact information?

Here’s your litmus test…What is your favorite business to visit? Take a close look at what they do to deliver a fantastic experience and incorporate that into your event.

Does this take more work? Yes absolutely.

Does it take time to develop a database of prospects to market these events to? Yep.

But what’s your option?

I’ve compiled a more specific summary of the above 5 ideas that you can download for FREE on my website.

You can get it by clicking here>>

By the way, do you have some other ideas to get more leads? Leave a comment below and tell me about them!

Happy Selling!

3 Fundamentals to Getting More Leads- A Home Builder’s & Remodeler’s Guide to Advertising

I was speaking with a home builder the other day about advertising. A quote came up that I’ve heard before- maybe even you’ve uttered it…

The builder didn’t advertise in the traditional sense (print, radio, bill boards, etc.). But they do advertise. They just were defining it wrong.

What followed was my explanation of how advertising has evolved. And why virtually no home builders and remodelers advertise correctly.

If you’ve ever wondered why your advertising isn’t working you’ll find the answer here. Enjoy!

~Rick

I was watching a video blog last year when the presenter asked, “Do you know the difference between advertising and marketing?”

It was a great question and I didn’t know the answer. So I started looking at the difference- which led me to TRULY understand what’s missing from home builder’s and remodelers marketing plans.

Advertising vs Marketing

Wikipedia defines advertising as…

Advertising is a form of communication intended to persuade an audience (viewers, readers or listeners) to take some action.

Pretty simple, right?

Now take a look at Wikipedia’s definition of Marketing…

Marketing is the process by which companies determine what products or services may be of interest to customers, and the strategy to use in sales, communications and business development. It is an integrated process through which companies create value for customers and build strong customer relationships in order to capture value from customers in return.

Happy Selling!

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.

This Tuesday February 9th from 12:00 – 12:45 CST (1:00 – 1:45 EST) I’ll be talking with Marie O’brien of Blue Tangerine Solutions as part of their “Ask the Experts” series about how to stimulate your sales in 2010.

You can use this link to register (there is NO fee)

https://www2.gotomeeting.com/register/753470490

The program we’ll be discussing is called 6 Secrets to Maximizing Your Sales in Any Market Revealed. It’s an UNCONVENTIONAL approach at marketing and selling new homes and design/build remodeling.

First of all- We’re NOT selling ANYTHING at this program. AND everyone that attends will be able to download a summary of the program- at NO cost. Plus you’ll have an opportunity to ask questions and offer your opinion.

We WILL uncover the most common mistakes builders and their salespeople are making today…and how you can avoid them.

We’ll talk about…

• What you’re doing wrong with your marketing approach and how to correct it

• Why relying on a sales process that worked during the last recessions WON’T WORK.

• Why 99% of home builders are looked at as all the same. What you can do to stand out to today’s consumer

“Thanks Rick. With your new ideas we’ve adjusted our attitude and will create some new opportunities.”
-Mark Williams, Mark D. Williams Custom Homes

We’ll be discussing REAL WORLD strategies, from the trenches, that are working in markets that are down 85%+ from their peak.

And I’ll even take a stab at predicting how builders and remodelers will need to evolve their sales strategies as the decade progresses!

Warning: This will not be more of the “been there heard that” from sales trainers and marketers that think the answers to today’s market is what worked in the past.

If you don’t want to be challenged with NEW IDEAS and a fresh perspective on the housing market- avoid this webinar at all costs!

If you are ready for something different…Get yourself signed up and hold on to your seat! Remember- there’s no cost but it’s this Tuesday only.

Register here>>

Realtors® and Home Builders: If You Knew a Sure-Fire Tactic to Generate More  Sales- Would You use it?

I’ve been teaching quite a bit of real estate continuing education of late and have noticed there is still a HUGE chasm between Realtors® and builders.

So here’s the questions…

How can Realtors® leverage builders to increase their business in 2010?

How can builders increase their co-op Realtor® sales?

Building relationships with Realtors® and builders is the fastest, easiest way to build your business. Here’s how to do it.

~Rick

Cracking the Realtor®/Builder Code

Every time I teach a real estate continuing education class I always ask this question…

“How many of you derive 5 – 15% of your income from representing buyers in new home sales?”

The statistics are pretty consistent…about 5%!

That means 95% of Realtors® AND builders are leaving money on the table.

Here’s what Realtors® are telling me about WHY they aren’t comfortable with builders…

1. They don’t trust builders. Either they’ve been burned by a client going directly to a builder or have heard a story about it in their office.
2. They don’t understand the building process. It’s hard to admit but Realtors® don’t feel comfortable working with builders because they don’t understand the process.
3. They don’t think of it. Most brokerages don’t have a training program that deals with buyer representation in new construction. Out of sight and out of mind.
4. They don’t want to wait to get paid. Would you? Let’s see…you can sell a used home and get paid in 45 days or wait 6 months to get paid for a build. Tough choice, isn’t it!
5. They don’t realize new homes are available in the area they’re showing homes. Most Realtors® don’t realize infill possibilities exist. Most aren’t aware of remodeling options and renovation financing either.

Now I’m sure there are more reasons but these are the top 5 I’m hearing on a consistent basis.

Builders Pay Attention

Because 85 – 95% of all transactions in any particular market are used- builders need Realtors® a lot more than Realtors® need builders.

Here’s the top mistakes I see builders making when it comes to working with Realtors®…

1. Paying the builders representative a higher commission if no outside Realtor® is involved. And how is this set up supposed to foster better cooperation?
2. Making the client registration process difficult. Have registration forms available at your model, office and on your website. Phone calls are just fine for temporary registrations too.
3. Relying on the MLS for your Realtor® business. Relationships, not showings will build your Realtor® business. Remember Mr. Builder, you need them more than they need you. You have to put your best foot forward to get these relationships going.
4. Treating the co-op fee as a commission. The 2-4% you pay out, Mr. Builder, is not a commission- it’s a marketing fee. The best news is you don’t pay a dime of it unless the sale is made.
   
5. Offering to take 2-4% off the price since the buyer doesn’t have a Realtor®. Look, I work in the trenches with my clients and I know how tight deals are today. But the minute you utter these words to your buyer and they get back to the Realtor® community- it’s the kiss of death. AND think about it- unless 100% of your sales are with cooperating Realtors®, you don’t have a 2-4% co-op fee built in on every sale.
   

“So herein lies our problem- Realtors® and builders keep traditional mind sets and no new business relationships are fostered. Well, is that good enough for you in 2010?”

Fresh Opportunities for the New Economy

Realtors® and Builders can’t continue the oil and water relationships of the past. Each needs a new avenue for business and both have something the other wants.

I’ve developed a list of “best practices” for Realtors® and builders. It’s called Cracking the Realtor®/Builder Code- 10 Sure-Fire Tactics to Jack up Your Sales.

This list is based on direct feedback from Realtors®, builders and builder sales representatives.

You can download it for absolutely FREE by clicking on this link>>

What about Your Thoughts?

Am I missing anything?

What are some of the successful relationships you have fostered with Realtors or builders?

We all have our horror stories of the past but that won’t help anyone grow their business today. I look forward to hearing what you think! Leave a comment below.

Happy Selling!

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

So said the radio talk show host, as he commented on the current government administrations views on pending Cap and “Tax” legislation.

No matter what your political views are on man made global warming/climate change or whatever you want to call it- are you making a big mistake in the world of marketing “green” housing?

Here’s two stories on consumer’s reactions to Green housing and the lessons learned. I hope you don’t make these same mistakes!

~Rick

I had to say “Goodbye” to a wonderful salesperson I’ve had the good fortune to manage off and on over the last 10 years.

As he was wrapping up his sales duties we discussed a job that was sold- but he was still trying to get into production.

This client struggled to make decisions. She also was very interested in building a “green” project (not a good combination).

The salesperson updated me that most of the decisions had been made and the job was about ready for production. I asked him if the homeowner was still submitting the project for the Green designation program and the answer was “no.”

When I inquired if it was because of the additional decisions required for the designation I was surprised to learn that it was not.

For her- it came down to adding things to the home she didn’t see value in…the extra price didn’t justify the return.

Model Homes

Another client just sold a model home that was built with a Green designation and entered into a home tour.

The tour generated hundreds of traffic units and the model was well publicized that it was a Green home with the designation.

The result?

Approximately 15 traffic units out of 500 previewed the home because of the Green designation.

I asked my client about the person that purchased the home. “Did they buy it because of the green designation?” The answer- a flat “no.”

I asked what the cost to add the features and obtain the designation (I know some of you reading this are thinking there is no “cost”- only an investment. I would tell you that if the buyer didn’t value the “investment” the R.O.I is zero.) About $10,000 was spent to get the designation.

The Fallacy of Green Marketing & Where You May Have Gone Wrong

Oh sure the intentions are good. The execution just stinks!

Anytime you try to use a designation (LEED, NAHB Green Building, etc.) that was defined by someone else and ask a consumer to embrace it as their own is a losing battle.

Why?

Look at it this way. The average Joe and Josephine has no definition for…

• Blower door test
  
• R-value
• Building envelope
  
• Forest Certified
• U-Value
• LEED

And the list goes on and on.

The average consumer DOES understand…

• More money in my pocket from lower utility bills
• My kids are safe and healthy
  
• I live in a clean community

Ford “gets” this. Check out how they are promoting their new 2010 Ford Fusion Hybrid>>. Compare that to how Toyota promotes the Prius…

The Answer

The answer is simple. Make Green personal. Make it tangible for your buyer. You don’t need a designation to do that. You just need to understand what is important to your buyer.

Use this link to find out how to “segment” your Green offering based on your buyer’s interests>>

Until our government and building associations understand this fact, the current designations will continue to do what they have always done…Generate interest but very little sales.

Am I nuts? Have a different opinion? Think I’m the idiot?

Tell me what you think. Post your comment below.

Happy Selling!

I found this fascinating quote today:

With the expansion of the marketer’s toolbox to include social media, marketing is no longer about pushing out one way communications. The marketing world is no longer defined solely by impressions; it’s now a world of interactions. Today’s marketing includes the customer’s voice throughout the process, whether it’s intentional or not. Customers will talk online and comment on a brand’s marketing campaigns, products, services, and even how a company treats employees. It’s not enough to think about how companies communicate outwards; it’s just as important to think about how customers can communicate back, with each other, and arguably most importantly, with new prospects.adamhcohen.com, The New Marketing Funnel, Aug 2009

You should read the whole article.