How to Close Slow Moving Prospects- 3 strategies for home builders and remodelers

Coach Rick here.Funcitonal-Sales-Image_v6

Here we are once again- the 4th quarter. In less than 60 days we’ll be in holiday mode and most prospects will shut down for the month of December. I’ve been working with my clients to motivate some “fence sitters” to take action and authorize a purchase agreement by 12/31. Here’s 3 strategies we’re using to get some sales.

1. Get 2014 Pricing on Your 2015 Project

We all know what our trades and suppliers like to do at the beginning of a new year- raise prices. 2015 will be no different. I’ve heard anywhere from 2-3% on materials and labor. On a $500k home that’s $10 – $15,000! I suggest you work with your trade partners to find out if they will provide current pricing for any of your prospects that sign a PA by 12/31. You may need to send your trades purchase orders to lock in prices. Just work out a deal and then pass those terms on to your prospects so they can take advantage and you get another sale!

Don’t forget code changes. Does your locale have any new codes that will affect 2015 pricing?

2. The Best Availability is Now!

The best lot selections are available right now. Prices will only go up on land developed in 2015 and the best lots will be taken. To quote Bob Schultz, “The only thing waiting gains you is an erosion of your buying power.”

3. Create Scarcity in Your Production Schedule

You may be hungry for sales right now but think about what would happen if all your prospects bought between today and the end of the year. You’d have a mess on your hands! You have a finite amount of production capacity. Ask yourself these questions:

How many new starts can you handle in a month?

How many clients can your interior designer get through selections in the next 3 months?

How many clients can your architectural designer complete plans for in the next 3 months?

The answers to those questions will allow you to create a slot schedule. Once you have that, compare the number of slots to your number of prospects. Hopefully you have more prospects than slots and can follow-up with, “We can only start 6 more homes this year and I have 10 people that are interested in getting 2014 pricing for their 2015 build. If you’re interested in getting a slot, this is what you need to do….”

You should produce documentation showing your prospects what they need to do and when they need to do it. Always give them a hard deadline to take action and if they miss it, they know the same exact project this year will cost 2-3% more next year. That thought doesn’t sit well with people so you should see some success with these strategies.

How about you? Have some other ideas or strategies that are working for you? I’m going to continue this discussion in my Facebook and Linkedin groups. Please join me by clicking on the link(s) below!  

~Rick

P.S. For a more thorough discussion of this topic and many others, join my Linkedin or Facebook Discussion Groups Automated Sales for Home Builders and Remodelers.

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