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!

Home Builders, Remodelers and Realtors- You Have a 96% Chance of Failure if You Miss This

Are you ready for the spring sales market?

Are you looking for innovative ways to Close More Sales and Maximize Profits?

Statistics show that about 60% of your sales are made by June 1st. These next couple of months will either make or break your year.

Well, this is where the rubber meets the road…

It’s where I pull out all the stops and take a full day to share with my clients the most powerful sales techniques I know.

If you’re tired of muddling along without the sales tools you need in 2010- this is your once-a-year chance to attend my Sales Symposium…

The Ultimate System for Closing More Sales and Maximizing Profits>>.

Here’s the deal. I put this on for my clients and only let a few other people attend. That’s it. No encores.

This year I’ve decided to let 10 other people get the same iron-clad strategies my clients are using to outsell their competitors 8 to 1.

I’ll be presenting the same sure-fire tactics that my clients get- only at a fraction of the price. And when 10 other people have signed on- the doors are closed on this symposium until next year.

Does this stuff work? Don’t listen to me. Click on this link to see how Andy beat out 25 other competitors who didn’t have my training.

Use this link to hear Andy’s story>>

One last thing…if you register for the class in the next 3 days, you can take 10% off the registration when you use the promo code moresales2010. Just type in “moresales2010″ when you checkout to save 10%. You need to do it by February 19th to get it!

Will you be in my video talking about your great 2010 next year?

P.S Remember- only 10 people get the opportunity to get my easy-to-implement ideas AND save 10% off the registration. Good luck!

Register for the symposium 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!

“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!

“All I Want for 2010 is to be the Low Price Leading Home Builder…Or do I?”

You may have heard that the week between Christmas and New Years is typically the worst week of the year as it relates to business production.

I’m working on marketing and business plans right now. One of the things I’ll be helping my clients with is helping them NOT be perceived as a home builder or remodeler…

Why you ask?

When you call yourself a Home Builder, Remodeler or New Home Salesperson, your prospect has a built-in perception of what you do (and that can be good or BAD).

Let’s assume they perceive you to be a “good, quality, family-owned” home builder or remodeler. Do you think they might also talk to other good, quality, family-owned builders too?

The bottom line is if your prospects perceive you to be just like your competitors, there is only one differentiator…PRICE.

Market Positioning

Very simply, market positioning is going after a niche in the marketplace. You position your company to fill a niche and generate leads based on that niche.

Ask yourself the following questions…

• Who is your target market?

• What are their biggest housing problems?

• Do your prospects believe you can solve their problems better than a used home or your competitors?

• What is different, special and unique about your company? What do you do best?
  

• Why would your prospect choose you?

The Answers

BuilderRadio.com interviewed me on the subject of market positioning. You can listen to the interview by clicking on this link>>.

Give it a listen while you’re working on your business plan this week. It’ll help you answer the above questions.

Listen to the interview here>>

Happy New Year & Happy Selling!

P.S I talk a lot more about Market Positioning in my FREE E-guide, “6 Secrets to Maximizing Your Home Sales in any Economy Revealed.”

All you need to do is verify your email address and you can download it right away. It’ll also help you a lot with your 2010 Marketing Plan…

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>>

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.

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!

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)>>