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

“Is it the Market or Is It Me?” How to Make Maximum Sales in Minimum Time in a Battle-Hardened Housing Market

This is THE question- isn’t it?

What’s the answer?

Two remodelers and a home builder contacted me last week asking the same thing and here is the answer I gave them- one that you may not expect…

~Rick

Is it the Market or Me?

I was speaking with Mike from Michigan this morning- a second generation remodeler who does NOT operate in the Detroit market.

Mike explained his situation- a situation that may be similar to yours. His business is down over 85% from its peak. He had to lay off most of his staff and is now doing everything himself.

Mike read my blog post on the importance of appealing to women in order to increase your sales. He could relate to the mistakes I had made and now his question was, “Is it the market or is it me?”

Your challenge in 2010

Your challenge in 2010 is no different than Mikes. I’ll bet you’re operating with less staff, have been forced to cut your advertising budget and seem to be constantly competing on price.

For most of you there are less people buying, building and remodeling homes in your market. There are less builders and remodelers you have to compete with but the ones still operating are pretty darn good.

You’re probably working longer hours and making a lot less…

This still begs the question- Is it your market or is it you?

The Answer

The answer is both.

Your changing market is to blame for your sales being off (aren’t I a genius to figure that one out!). Yet, the fact that you have been relying on the market to bring business into your company is your fault too!

“Wait a minute Rick…I’m working harder today than ever before. The business just isn’t there!”

You’re partially correct. You ARE working harder than ever before but are you looking in the right places for the business?

Is it the Market?

In my discussion with Mike I asked him how many other remodelers there were in his market. He told me 2-3 (at his level) but there were also home builders that were now remodeling (surprise surprise).

I suggested he visit the building inspectors office and get a list of permits from 2009.

The first step in identifying if the market is your problem is asking the question, “IS there a market for what I am selling?”

I suggested to Mike he take a look at the type of work being done in his market.

What type of remodeling projects were people building?

How many new homes were built? Where were they built and at what price point?

Assuming there is a market for your services, the second question is how do you get MORE of it?

Getting More Market Share

Now here’s an oxymoron for you- in order to get more market share you need to focus on doing less.

What?

You read that correctly. In order to get more market share you need to focus on less.

I’m not telling you to stop what you’re doing right now. I’m playing devil’s advocate and asking (as a consumer), ‘why would I choose to have you build or remodel my home?’

Unless your company is positioned to specialize in a certain geographic area, lifestyle offering or demograhpic/psycographic profile- you’ll come across as a jack of all trades and master of none.

To use an analogy, if you just had a heart attack would you want to see a general practitioner or a cardiologist? Of course it’s the heart specialist! And was your decision based on who costs less?

When you’re company is positioned as a specialist people will seek you out for more than just the lowest price.

3 Steps to Determining if it’s Your Market or if it’s You

Step 1: Review building permits and MLS sales for your market. Are people buying what you’re selling?

If they AREN’T buying what you’re selling can you offer something different or can you move to a different geographic market where they are buying?

If they ARE buying what you’re selling but you have a low market share, go to step 2.

Step 2: Specialize, specialize, specialize! If you’re in a small market and can’t move, you may need to specialize in 2-3 things.

The key to specialization is understanding your target market’s problems better than any of your competition. More on this to come at a later date…

If you HAVE a market and are perceived to be a SPECIALIST- go to step 3.

Step 3: Focus on Managing Tasks- NOT Time.

There’s no such thing as time management. We all have the same amount of time in a day.

Because you are doing more with less, are you focusing on the things that will get you your next sale? With all the extra duties you’ve taken on, you may have lost focus working ON your business vs. working IN your business.

Most people tend to spend the majority of time working IN their business. That’s where their comfortable- working on tasks they know.

But these tasks aren’t the same ones that will bring your next buyer in the door.

What you need to focus on each day is the tasks that will lead you to your next sale.

Over the last 20 years I’ve broken down these tasks into 3 categories- Preparing, Prospecting and Presenting.

You can download “Task Management for Housing Professionals” for FREE with the link below…

Download the Task Management List Here>>

Thoughts, questions, other ideas? Tell me what you think by leaving your thoughts at the bottom.

Happy Selling!

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>>

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

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>>

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