Are You Selling Price?

One of the most important skills in today's real estate market is the ability to "create value in your product based on what is important to the consumer".  Don't confuse Price with Value ... that is what your competition is trying to do because they don't know any better.  Beauty is in the eye of the beholder, and so is value.  Grab a pencil and paper and get ready to take some great notes because the following article contains "valuable" information that can transform your sales results.

 

Who’s Making It About Price, You or the Customer?
by Mike Weinberg

Salespeople love to complain that all the customer cares about is the price. When we don’t get a deal, we’re quick to point to our higher price as a major cause of defeat. My friend Anthony Iannarino has written extensively on the topic of price, and he points out that this excuse is usually a lie we tell ourselves. I’d encourage you to link over and read several of his thought-provoking posts about price.

I’m really in tune with the whole price thing right now because one client asked for custom coaching content on selling against a lower-priced giant competitor. Another had me do a “success study” comparing behaviors and attitudes of their top-performers against those were weren’t doing as well converting leads. One of the big findings from that study was that those struggling with conversions viewed the lead as price shopping vs. reps who were more successful that took a consultative approach, assuming the prospect had a problem that needed to be solved. And a third client of mine is fighting an industry trend of declining prices. Their sales team is hyper-sensitive about being priced at a premium and I’m continually getting an earful from them about being competitive. So with all of that as backdrop, my antennae are up regarding price conversations and I’m disturbed by what I’m discovering:

More often than not, it’s the salesperson who is making it about price. 

Sometimes it’s intentional. Sometimes it’s just habit. Whatever the case, it’s killing them (and me). Time and time again I see the salesperson initiating the price conversation. It’s coming through in their attitude, in their approach to the customer, and in the words they are choosing.

Salespeople are supposed to be professional problem-solvers and value-creators. When we view ourselves as problem-solvers and take a consultative approach believing that our prospects potentially have problems or issues for which we have solutions, then price should be the last thing on our minds. But time and time again I hear salespeople fretting about their pricing, and starting telephone and face to face calls convinced that the prospect is hugely concerned with price. Recently I’ve heard: “give us an opportunity to look at this and we’ll see if we can save you some money.” Another told a prospect “I’d like to quote this for you and see if I can do better.”

What in the world, people? Why would we ever talk like that? Let me be blunt: If all you’re doing is selling price, then why do we need you? You bring NO VALUE as a price quoter. None. No value to your prospect and certainly, no value to your company. If all that matters is price, why don’t we just walk up and down the aisles of airplanes handing out price lists or put our pricing front and center on our websites? If it is indeed all about price, we’re all pretty much about out of a job.

Two very different sets of words that produce dramatically different outcomes:

I love when a salesperson asks great probing questions. I’ve believed for a long time that we can accomplish a whole lot more selling by asking great questions that demonstrate our expertise than we can with a slick presentation. Something magical and wonderful happens in the prospect’s mind when we ask insightful and penetrating questions. They see us as someone who can help them, and it positions us as that consultant and problem-solver I mentioned earlier.......continue reading

Creating a Great Customer Service Experience

In today's real estate environment it is very difficult to measure the success of a person or organization by sales alone.  One sure way to stand out above the crowd is to provide the very best customer service your prospects have ever experienced.  That is one thing you are in control of ... you don't control the market or product your are offering but you do control how you treat people and the experience they receive.  Outstanding sales people go above and beyond the call of duty, especially in today's environment.  It may not payoff immediately but you are planting the seeds of your success for tomorrow!  The following article has ideas on how you can get started today! 

 

Perpetuating World-Class Customer Serviceby Van Carpenter, The Front Porch Philosopher

 

We have discussed how a company, like yours, can establish a superior customer service culture. This culture begins with a commitment from management that customers truly are the company's most valuable assets. Secondly, a company must realize that its employees are its best customers. The employees must be trained, empowered and rewarded for superior customer service. And finally, consistent service provided by all employees is essential to retaining and obtaining external customers for your company.

 

This article will focus on actions that you can take immediately to perpetuate your company's world-class customer service. We often think that business and personal actions that are supposed to yield large or profitable results have to necessarily be complex or expensive. Not true! In customer service, it is the simple and inexpensive actions that yield the most results. So, what do you have to do?

 

1) Remember that Your EMPLOYEES Are Your Best Customers. These are the people who are your direct representatives to your external customers. They need to understand management's philosophy of customer service. Employees need to be well trained and have incentives and recognition when they provide the superior service that is required. Remember these are the persons who provide the consistent service that retains and obtains your valuable external customers;

 

2) Consistently Treat Your Customers as the Most Important Aspect of Your Job!  It doesn't matter whether you are management or an employee in any department; the customer is job one! They have to come before the administration, the paperwork, the personal chore, the next phone call - whatever it is that is distracting you from providing that specific customer the service they require. Part of this is obtained through the company culture, but mostly it is taking personal responsibility.

 

3) LISTEN! Listen to your customers.  They will tell you what they need. Don't be so busy trying to steer them or "help" them, that you forget to listen. Listening requires no talking. And always listen to what your customer is "not saying". Listen "between" the lines. That could be more important than what they are saying. Effective listening pays big dividends;

 

4) Be Timely and Follow Up!  When you tell someone you will be there at a certain time, make sure that you are or call in advance. When you promise deadlines, make sure that you deliver on-time or if situations prevent that, let the customer know well in advance of the deadline. Don't wait to the last minute and hope that everything works out! Have you ever had someone from a service firm tell you that they would call you when your purchase or service was ready? How did you feel when they actually did call? Great, I'm sure. Customers are so unaccustomed to good follow through that making it a habit will guarantee you customer service points;

 

5) Under Promise and Over Deliver!  Never promise what you HOPE you can deliver. Promise only that which you are SURE you can deliver. In making a promise, you automatically set the expectation for your customer. And the perceptions created about your customer service are based on these customer expectations. So work diligently toward what you hope. Then if you can deliver early, imagine the delight the customer feels rather than disappointment!

 

6) Be Option Oriented!  Sometimes you can not provide a customer what they want or in the time period they require. Be sure to provide them options. "I can't deliver your order today at noon, but I could have it there at 4pm or first thing in the morning. Will that be okay?" Having options softens the customers' disappointment. However, be sure not to offer too many options. That often confuses or overwhelms the customer. Keep your options down to one or two.

 

7) Mind Your Body Language & Tone of Voice!  We will either meet a customer in person or talk to them over the phone. Either way, our body and voice make a difference in how that customer perceives us. Smiling in person or on the phone ensures that your customers will get a positive image. Hint: look into a small mirror just as you begin your conversation. This is an area where training will help you hone your telephone and interpersonal skills. Plan to take some training! It really helps and builds confidence- not to mention customers!

 

8) Be Empathetic - Not Sympathetic!  No matter how good you become at customer service, there will always be one difficult customer that is not pleased with your performance. At times like this, your best strategy is to listen and be empathetic. Empathy means understanding your customer's point of view, regardless of whether or not you agree. Being sympathetic requires you to first agree with them and often comes across as being condescending. Be sure to employ phrases like, " I understand how you can feel that way." "I see your point of view." "I hear what you are saying."

 

9) Measure Constantly to Maintain Consistency!  Just as we started these suggestions with good business practice, we will end with the same. No program of customer service will be consistent without an occasional adjustment. The correct adjustment in strategy or practice can only be determined from measuring the effectiveness of your standards. You can measure as management, and you can let the customer have input to the process. The important thing to remember - measurement ensures continued quality of service and after all, isn't that our goal?

 

10) Start now ... the past is the past / create your own world class customer service experience beginning today!

 

Consider and implement these simple and inexpensive actions and your company's customer service will be the envy of your competition and the pride of your customers.

You Can't Always Win.....And That's Ok!

How to Lose on Price (Or: You Cannot Win a Fight with One Who Is Willing to Kill Himself)

By S. Anthony Iannarino

I have made note here on my feeling about selling price. And here. And here. And here. The principle rule was, is, and always should be to create enough value for your dream client that you can capture some of the value for your company and for yourself.

This means that you are going to sometimes lose on price. Period.

You have to learn to live with that fact, even when it is painful to do so. You will sometimes lose on price even when you were the right choice. You will sometimes lose on price even when your competitor has no way of creating value because they have no way to make enough money to support a real solution. You will sometimes lose on price even when your dream client has bought a great, big, shiny lie.

In some fights, there is no way to win. If your competitor is willing to kill himself financially to win the deal, he is going to win the deal. You cannot win by chasing him to the bottom in a race to see which one of you is willing to kill yourself sooner and in the most horrific and brutal manner.

Worse still, you cannot win.

If your competitor is willing to go someplace that you cannot follow while still honoring the principle rule (create enough value that you can capture some for your company and yourself), then you simply cannot follow. To win at a price that would cause you to fail for your client, to produce less of a result than you know that your dream client needs, to produce a result that is less than you promised, or that leaves no way for you to capture any of the value that you create, then you have won nothing.

Instead you will have lost the time you could have spent working on a deal that would have produced results and value for your client and you. You will also have lost your integrity and your credibility by delivering a lesser result that will surely ruin your dream client’s experience of working with you (and producing an experience that they will likely share with others who ask).

How then do you handle these pricing contests? You handle them with class, with grace, and with confidence. You thank your dream client for their time. You let them know that you believe that your solution will produce a better result, and that you hope that if there decision doesn’t meet their expectations that you can reopen a dialogue about pursuing your solution. You wish them the best of luck, and you tell them that you are standing by at a moment’s notice to jump in with both feet and make a difference should they need you.

Then you move on. No gnashing of teeth. No wringing of hands.

But remember, the circle of life for those of us in sales begins with dissatisfaction. You get what you pay for, and the best solution and the best price are rarely found in the best offering (they are two different strategies). You stay close and you put this dream client right back on your nurture list while you work on developing the relationships you need to win your next dream client.

Conclusion

Sometimes your competitor will beat you on price. It hurts. But if winning means you can’t create the value you need to capture some for you and your company, go ahead and lose.

Bridging the Online and Offline Gap!

Events and experiential marketing used to be limited to events we held at the sales offices and model homes.  Today the world has changed and the social media phenomenon provides all of us with the opportunity to market in new and powerful ways.  Can one person create a buzz ... absolutely!  Can an organized group of sales and marketing professionals make a huge impact ... more than ever before!  Take a look at these techniques and think outside of the box ... how can you make a difference?....how go you bridge the gap?

7 Online Techniques to Improve Offline Events

Today, events and experiential marketing are extremely useful to marketers because they allow marketers to have face-to-face, direct contact with their potential and current customers. Furthermore, events are a useful technique for developing stronger inbound connections. So many companies have learned that these types of offline events allow them to reach potential customers through a more traditional platform. Holding events or taking to the streets makes it easier for marketers to directly connect their brands with their prospects and customers.

That said, making sure you connect these offline events with your inbound, online platforms is crucial. Using online channels can not only help you promote your event in advance, but it can also motivate attendees to engage more deeply with your event during and after it takes place.
Here are some helpful techniques you can use to connect an offline event online before, during, and after the event actually takes place. Read more of this article

Customer Service is Key!

JD Power may have some competition these days.  Never before have consumers had as much influence on a companies reputation as they do today!  Why do companies such as Nordstrom and Southwest Airlines spend so much time, money and training focused on the professional service provided to the client?  First and foremost, because it is the right thing to do.  Secondly, their employees understand that a positive and memorable experience will somehow make it to the bottom line via reputation, customer loyalty and eventually ... revenue.  The world is changing quickly and the consumer has a large stage to provide positive reviews on the product and service.  Become known as the difference maker for your organization.

Positive Customer Reviews Lead to Increases in Revenue

We’ve always known that negative customer reviews can bulldoze a business. But what can positive consumer reviews do? 

Michael Luca, a Harvard Business School student, discovered that consumer reviews have a positive effect on revenues in the restaurant industry. In his research, “Reviews, Reputation, and Revenue: The Case of Yelp.com,” Luca revealed that “a one-star increase in Yelp rating leads to a 5-9 percent increase in revenue.” Interestingly enough, this dynamic seems to affect independent restaurants and not chain restaurants.

A Great Opportunity for Small Businesses 

“The data show that people respond more to reviews when they don’t know much about a company. In industries where this is the case, the response should be larger,” said Luca in an email interview with HubSpot. This is great news for small businesses, for they can level the playing field and take advantage of customer reviews to grow their reputation. 

Click here to read more!

A Very Potent Speech from Steve Jobs!

Life is not about "what you take" ... rather it is what you leave behind.  In today's challenging economy this example of "passion and belief" is a message we should never forget.  Consider the challenges you may be facing as a "test" ... a test of your character, your belief, your determination and your friends.  Everything you will ever need to be successful in this life is sitting right in front of you.  Sometimes we just need to be willing to open our eyes and take a look!  Enjoy this story about a man who opened his eyes so we could enjoy his vision! 

'You've got to find what you love,' Jobs says

This is a prepared text of the Commencement address delivered by Steve Jobs, CEO of Apple Computer and of Pixar Animation Studios, on June 12, 2005.

I am honored to be with you today at your commencement from one of the finest universities in the world. I never graduated from college. Truth be told, this is the closest I've ever gotten to a college graduation. Today I want to tell you three stories from my life. That's it. No big deal. Just three stories.

The first story is about connecting the dots.

I dropped out of Reed College after the first 6 months, but then stayed around as a drop-in for another 18 months or so before I really quit. So why did I drop out?

It started before I was born. My biological mother was a young, unwed college graduate student, and she decided to put me up for adoption. She felt very strongly that I should be adopted by college graduates, so everything was all set for me to be adopted at birth by a lawyer and his wife. Except that when I popped out they decided at the last minute that they really wanted a girl. So my parents, who were on a waiting list, got a call in the middle of the night asking: "We have an unexpected baby boy; do you want him?" They said: "Of course." My biological mother later found out that my mother had never graduated from college and that my father had never graduated from high school. She refused to sign the final adoption papers. She only relented a few months later when my parents promised that I would someday go to college.

Click here to read more or to view the speech

Facebook Does it Again!

What was once known as a "sales professional" is fast becoming "required to be" a marketing professional.  And for those of you who are ready to evolve, you can thank the social media revolution for that!  Facebook's new metrics and advanced advertising functionality means a number of important things for marketers.  Think of the many ways you can utilize Facebook's new 'People Talking About This' feature. According to research conducted by Nielson, when Facebook users see their friends’ names Facebook social ads, they’re twice as likely to remember the message and four times more likely to buy the product.  Sounds like a traffic opportunity to your community!

Related Articles:

Facebook Launches Public-Facing Buzz Metric and Enhanced Ad Feature
 

And the Facebook announcements just keep on coming. Today, we learn about Facebook's new metrics within the Insights tool, a new premium ad unit, and the Facebook Insights API.

Let's dive right into what these new features are and what they mean for marketers. 

Read more about this on HubSpot Blog!

1st Time Homebuyers Growing Weary of Short Sales

Although we have been hearing complaints about short sale purchases for 2 or 3 years, the media has finally started to pick up the story and report on it.  Listen and adjust - our consumers are telling us they "do not want to buy short sales" and YOU offer the perfect solution.  How have you positioned your community and homes against REO's and short sales?  What is your competitive advantage?  Don't make this a commodity purchase ... tap into the emotional reasons for the move and demonstrate how your homes can satisfy their needs, wants and desires.

For additional information about this news, check out the article below written yesterday by KERRI PANCHUK 

Monday, September 26th, 2011, 8:34 am

First-time homebuyers are growing tired of short sales, which take nearly 17 weeks to complete, according to the latest Campbell/Inside Mortgage Finance housing survey. While first-time homebuyers acquired 54.1% of all short-sales in November 2009, the segment's share of acquisition activity fell to 39.7% in August with many buyers losing interest due to several factors slowing down the process, the Campbell/Inside Mortgage Finance survey showed. The August figure represented a "three-month slide and was the lowest level for first-time homebuyers ever recorded in the survey" of 2,500 real estate agents.

The short-sale process is often delayed due to paperwork issues, challenges coordinating with multiple investors, slow appraisals and understaffing at mortgage servicing outlets, according to the survey.

Short sales do maintain some allure for first-time borrowers because the generally sell at prices 27% lower than non-distressed properties, the report said.

California remains a hot spot for short sale activity, with these transactions representing 31% of all home purchases in the Golden State in August. In many cases, first-time buyers are making multiple offers on short sales to try and expedite the process, according to the Campbell/Inside Mortgage Finance survey.

Related Stories
Survey finds house prices still stable in August as buyer interest hits 'brick wall'
Survey Finds Short Sales Outnumber REO in January Purchases 

First-time homebuyers are too few in number to absorb inventory overhang
REO Demand Pushes Sept. Prices Up: Campbell Survey
Foreclosure mess scares off homebuyers: Campbell/Inside Mortgage Finance