Did you Miss the International Builders Show? Here’s a Shortcut for the 7 Best Ideas from the 2010 show…

I returned from the International Builder’s Show in Las Vegas last Friday at 1:20 in the morning. It rained for 4 days in the desert causing delays at the airport.

The weather inside the convention center, however, wasn’t all rain. There were some beautiful sunny ideas. Here is a list of the 7 best thoughts from the show. Enjoy!

~Rick

The Best of the Best

J Van Rose Jr. of Rose & Womble Realty New Homes Division on the key traits of salespeople in today’s housing market…

Tom Richey of Richey Resources commented on what type of training salespeople should be focusing on…

Brian Flook of The Brian Flook Group commented on how it’s more important to have quality names in your database vs. quantity.

This reminds me of a quote from another trainer…

Set a goal to build a list of 100 Qualified leads and make sure you know everything about them and they know everything about you and your company.

Mike Lyon of Do You Convert had 4 great ideas…

On how fast to follow up with e-leads…“5 minutes or less. Try to get back to them when they’re still on your website.”

Mike also commented on what percent of e-leads are viable, “80% won’t do anything so don’t get frustrated.”

On how long to follow up with leads…“Most salespeople don’t follow up for more than 1 month. Most buyers won’t buy for at least 3 months. Make sure you have a dedicated 12 week follow-up program.”

On social media…“Focus your social media efforts towards Realtors. Most of them are already using social media and will follow you or become a fan.”

Honorable Mentions

Myers Barnes of Myers Barnes and Associates was as dynamic as ever. He has been one of the most motivational and educational mentors of my past.

Jeff Shore of Shore Forrest did some great presentations and always has a unique and fresh perspective on the housing market.

You can watch a short video courtesy of Mike Lyon on Jeff’s perspective below

Happy Fall to you! As a hunter, there’s no better time of the year. I just got back from my first grouse hunting trip with my 9 month old dog Bentley.

We flushed a few birds but didn’t put any in the bag. We DID, however, scare the you know what of out some Chipmunks and Tweedy birds!

~Rick

If you missed Part I (Kick-off & Research), you can click here for the article>>

According to Marti Barletta, author of Marketing to Women and PrimeTime Women, when men and women buy as partners, women control at least four out of five stages of the purchasing process (well really all 5 but us men need to get our egos stroked a bit .

Stage III- Purchase
If there’s one area of the purchasing process where we feel men are in charge, this is it. Why?

Historically this is where the “man” takes over as primary contact and negotiator.

It’s why we get confused as marketers…

…that men are the primary influencers in the decision to buy.

We get confused because it was her idea to move or remodel in the first place (Stage I) and she did all the research to find your company (Stage II).

Doesn’t it seem like you work and work with her and when it comes time to write the purchase agreement “Mr. Negotiator” steps in?

The question I ask all my clients in this situation is this, “Is she on board?” If they say ‘she is,’ he’s just trying to get the best deal.

In this situation stand firm on your negotiation. Give him something to make the deal happen- just not the farm!

Click here for a sales process that will have her selecting you and your company>>

Stage IV- Ownership

She’s back in the saddle again! The post purchase stage has her making selections, finalizing design, dealing with construction details, etc.

This is where your staged guest experience comes in. If you aren’t proactively staging a “Nordstrom’s” type  customer experience you’ll let her down, and you can’t afford that…

…because the ownership stage leads us to…

Stage V- Word-of-Mouth
OK guys…this is where we get BURNED.

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

Happy Selling!

Beware of the Middle-

The middle is never the best or never the cheapest….

Your prospects never remember you if you’re in the middle- you’re just like everyone else.

As builders, remodelers and salespeople we find the middle comfortable. We’re just trying to fit in.

Our presentations, homes and designs are OK.

Not the best…

Not the worst…

Not the most expensive…

And not the cheapest.

We forget that nobody is looking for average. Either we buy on perceived low price or perceived high quality- neither of which is found in the middle!

Happy Selling!

Get your free new home and remodeling sales resource guide here (and get out of the middle)>>

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.

What this video DOESN’T explain about social media is the relevance to a woman’s research process for new homes and remodelers. The information is, however, fabulous!

Don’t forget to pick up your free e-guide here>>

Happy Selling!

~Rick

Whenever I am exposed to a business today, whether it is online, over the phone or in person, I pay close attention to the dynamics at play. What is my first impression? How do I feel when I scroll through a website, talk to a representative or walk into a store? If you’re like me, you can anticipate the kind of experience you will have within the first 15 seconds.

Why is it that 85 – 90% of the time I am disappointed? Either the website is difficult to navigate or there are problems at checkout. The sales associate/representative isn’t very knowledgeable or doesn’t listen well or has an accent that I can’t understand over the phone. The store is dirty, poorly lit, no one is around to help me find what I need or it takes forever to make a purchase.

As a home builder and new home salesperson, your primary competition today is not another builder or the used home down the street. Your competition today is something very different indeed…

“Who or what is your primary competition today?”

Why am I disappointed with the companies I patronize 85 – 90% of the time? It’s not because I am a consultant that studies industry and best practices. Most consumers feel exactly like me. The reason we are dissatisfied is that we compare the best companies to all industries. In other words, if we thoroughly enjoy the experience we have at our favorite coffee shop, we compare that experience to taking our vehicle in for an oil change, dining out, buying groceries – and shopping for a new home.

We live in a highly specialized economy today. With a few clicks of a mouse, we can find the exact business or product we need. All this has led to a trend of creating micro niche companies. That is, businesses that have evolved into highly specialized companies that appeal to a relatively small group of consumers. This specialization has led to niche businesses that recognize and understand consumers far better than ever before, and they provide buying experiences that are far superior to the rest of the market. These are the top 10-15% of companies you enjoy dealing with; the ones you compare to everyone else.

“How does this work in home building?”

The Builders Association of the Twin Cities’ (BATC) annual Parade of Homes^sm is the largest in the country. According to research done by BATC and Merillat Cabinets, a home shopper will visit an average of 14 different homes and spend about nine minutes in each. Now I don’t know about you, but when I look at just four different models I can’t remember one from the other. How can we expect the consumer to recall the differences between 14 model homes and home builders?

Don’t try to be better. Be different!

If you are a quality home builder or quality salesperson – congratulations! You meet the minimum requirements to be in business today. The reason consumers get confused after looking at 14 different models is that every salesperson is touting that they are better. However, the consumers asks, “How do I know you are better when every model I visit, the salesperson tells me they are better?” Herein lies our problem…

Your biggest obstacle to overcome is not the competition down the street. It is the customer’s indifference toward your homes and the experience – or the lack of it – you provide.

Instead of trying to “one up” your competition, why not develop a niche within the industry and do something different, not better. Ask any home builder or their sales representative why someone should choose them over the competition, and invariably the phrase “we build quality homes” comes up. If the consumer hears this continually, then the only real differentiator between home builders is price. And if you’re not the lowest price, you are out of luck!

Why not become a specialty home builder and/or salesperson?

Remember the top 10-15% of businesses that set the stage for everyone else? That is your goal today. Set yourself apart from the mass market of home building and home selling by focusing on a niche. Understand your consumer better than anyone else and you will become the standard by which everyone else compares.

Happy Selling!

So now that you know what to stop doing, where in the world should you start? You can begin by asking yourself these questions:

1. What can I do to beat the market?

2. How can I better focus on my customers?

3. If I don’t play it safe, what should I do?

Happy Selling !

As I sat in front of the second customer in a two week period last October that told me “all home builders are the same,” the brutal reality came crashing down on me: Everything Has Changed. Yes, I was working with a well known, well regarded 30+ year home builder, but, to the customer, we were just another price quote. Between 2004 and 2007, every rule has changed. Indeed, it’s time for a Revolution!

Prior to writing this article, I went back and reviewed an article I wrote in November of 2006 called Seven Ideas for 2007. The article had many good, solid, boilerplate ideas that are still relevant for 2008. The problem is, even though the information is only one year old, it’s no longer enough for a year of changes in our new home market.

Are you angry?

Are you angry yet? Everything you knew (or thought you knew) has changed. And don’t give me the standard ‘this is like it was back in the early 80′s’ hyperbole. Our current climate has absolutely no similarities to that market (think interest rates, unemployment, media, lending and national home builders). The reason I ask if you are angry is because angry people are ready for a Revolution. Angry people are ready for change. Think 2008 is doom and gloom? Think again. Think opportunity.

Idea #1- Burn Baby Burn. In 1519, Capitan Hernando Cortes and a small army left the Spanish held island of Cuba and set out on one of the greatest conquests in the history of the world. Cortes was going to accomplish his goals no matter the consequences. He put to death some of those who opposed him, got himself appointed Capitan-General in order to get out from under Diego Velazquez’s authority, and even destroyed his fleet in an attempt to motivate his men to adapt to his at-all-costs attitude. The destruction of the ships has been widely studied and is still debated today.

Here’s the idea: In – in order to move forward, you can’t go back. The first list you need to create in 2008 is your “Stop Doing” list. I suggest:

1. Redefine who you are today and what you want to be tomorrow. The market will not build your business for you now or in the future.

2. Stop focusing on your houses (more on this later).

3. Stop treating your customers as you have always treated them.

4. Stop being ordinary (much more on this later).

5. Stop holding on to ideas that worked in the past.

6. Stop worrying about failure and fail forward fast.

Past Success = Enemy of Future Success

Idea #2- Your competition…today. Think mass retail with me for a moment, specifically discount store chains. On one end we have Wal-Mart (low price leader) and on the other end we have Target (more expensive but a pretty cool shopping experience). The problem with the majority of home builders today is that they fall into the Kmart category (stuck in the middle). They’re not as cheap as the national home builders, yet there is absolutely nothing compelling about their home designs or the customer experience. The customer looks and says, ‘they aren’t the lowest price so I won’t buy them.’ Thus we believe that we have a price problem when we really have a differentiation problem.

Your biggest obstacle to overcome is not the competition down the street. Your obstacle is the customer’s indifference toward your homes and the experience (or lack thereof) you provide.

Idea #3- Design please. “If a product’s future is unlikely to be remarkable – if you can’t imagine a future in which people are once again fascinated by your product – it’s time to realize that the game has changed,” Seth Godin from the book Purple Cow .

“The best design solves problems, but if you can weld that to the cool factor, then you have a home run,” Mark Schurman of Herman Miller, manufacturer of the $750 Aeron office chair.

Here are your design questions for 2008. What one thing does your home have that is the absolute best in the micro market you compete in? What problems will your home(s) solve for the customers you serve? If you can’t walk through your home(s) and answer those questions, how will your customers be able to?

Idea #4- Brand=Talent. “It’s been said that the most important decision an organization can make isn’t what to do, but who’s going to do it. That means that before you charge headfirst into the changes necessary to take it to the next level, you’d better decide if everyone on the train is really on board with their entire heart and soul,” Joe Calloway from the book Becoming a Category of One.

A lot has been written about branding your company over the years. Your brand is not an external thing created by an advertising campaign. Each individual within your organization creates your brand by what comes from their hearts.

Therefore, do whatever you have to do to keep the most talented folks around and don’t be afraid to weed out those that don’t fit into your revolution.

Idea #5- Go Green (just don’t pay more). According to Renegade Marketing, “Going Green” is a top 10 marketing trend for 2008. The good news for most homebuilders is that many of their current practices and products are already green. They just aren’t advertising it.

About 40% of the consumer market is interested in products that make their home safer, use less energy and tread lightly on the earth; they just don’t want to pay more for it. And when you do find the few people that will pay more, the payback needs to be in five years or less. Here’s the idea: Show them what you are already doing that is green (even if everyone else is also doing it). Think 2X6 exterior walls!

Idea #6- What are you selling, really? It’s a home, not a house, right? If you think people buy your homes because you are a “quality” home builder, think again. In today’s economy, every home builder brings a quality home to the marketplace. The builders that don’t are gone or will be gone soon. Quality is an entry level factor.

If your buyer’s are not buying a “quality” home, then just what are they buying? I suggest they are buying an emotional connection to your brand through a personal relationship.

In 2008, the salespeople that will sell the most homes are the ones that will discover more about their customer’s problems and get closer to them than anyone else. These salespeople will create an individual, thoughtfully staged experience and transform their customers ONE AT A TIME.

Don’t think marketing to the masses.

Think marketing person to person.

Idea #7- Women Rule! For any man reading this, let’s take a crash course:

• Women are directing the finances in nearly 70% of all U.S. households.
• Women purchase 62% of all new vehicles and influence another 30% of decisions.
• More than 80% of NFL products are sold to women.
• Women make 83% of all consumer purchases.
• Women directly purchase or have controlling influence in the purchase of 91% of all new homes.

Women in the U.S. make up the largest economy in the world. Need any more proof? A recent article in the Star Tribune about the buying habits of women vs. men when it comes to luxury cars reveals some stark contrasts. “Ask a man what automotive luxury means and chances are he’ll mention horsepower, handling and gadgetry. For a woman, there’s nothing more luxurious – in cars as in life – than safety, service and being taken seriously.

Are you designing homes and experiences that appeal to the women in your target market? Revolution me boy!

Idea #8 – Believe. At a seminar a few years ago, I learned there are four types of people in the workplace: the critics and the skeptics, the laughers and the mockers, the perplexed and the believers.

In my work with home builders and their sales staffs I am privileged to work with some believers. These folks get it. They believe in the systems I teach and they implement the strategies on an on-going basis.

They sacrifice daily and understand they can’t be all things to all people but they can focus on, say and do one thing. They become absolutely excellent at it. In other words, they do small, remarkable things on a daily basis.

“Don’t be boring. Safe is risky. Very good is bad.”

- Seth Godin

“Blame no one. Expect Nothing. Do something.”

-Bill Parcels, 2 time Superbowl Champion Head Coach

Happy Selling and Happy New Year!