MORE PROFITS FOR YOU

It may seem strange to be introducing this topic to you at a time when there are so many Agents out there, that it may seem the only way of getting more business is to cut commissions, give away free advertising or offer other incentives which slash your profits!

However, I think it's the perfect time to ask the first question of any business: How can I make substantial profits from my business?

The basics of successful sales and marketing demand that you:

¨         Build value, don't cut price

¨         Don't compete on price with a discounter (unless you are the Number 1 discounter in your market)

¨         Offer your clients a different (real or perceived - better, stronger, faster, safer, etc.) product or service package from your competitors

Just last night I was talking to an Agent in NSW whose problem was this:

¨         Just moved to a new city, so no network

¨         Working for a small agency

¨         Major competition has 20 offices

Major competitive factors were

¨         Over pricing of listing prices by competition

¨         Deep discounting of commissions

¨         Use of long Vendor Agreements (16 weeks)

¨         A strategy of grinding price reductions out of clients over the Agreement term (no thought or care for future relationships, but delivers short term success)

And he was getting thumped!! And this wasn't some newbie either.

He's had 30 years experience in Real Estate, all the regular activities are being performed - LBD's, phone prospecting, etc. But only marginal success - because he and the team at his office were competing with a discounter at the discounter's game. 

Surprise, surprise - they have minimal market share, and really they're just picking up the scraps!  Well, the question is, if this was you, what would you do?   The way I see it, you have 3 options in this situation.

1.      Play by the competition's rules - discount further, overprice listing estimates, and grind the Client down on price over time. 

2.      Develop a value package that differentiates between the service offered by the discounters and your own - and clearly explain it in your marketing materials and presentations - plus it justifies your pricing! 

3.      Build a referral business where clients value you and your service package and you are the only Agent called in!

[FIRSTNAME], what choice would you make?

There's nothing wrong with being the discounter in any market (although I don't agree with burning and churning future business for today's dollar).  But there's only room for one discounter!  And if somebody else has grabbed that spot, and has deeper pockets to survive until volume makes up for margin, then it's not a game that you want to play.

So let's look at Options 2 and 3, because they are really the same thing, just marketed to a different audience.  For both options, you need to have a clearly defined service offering that:

¨         Stands out from your competition

¨         Clearly provides fantastic value for your client (i.e. they perceive they are getting more value from your service than they are paying for). 

If you don’t have the strength of your belief in your service offering, neither will your prospective clients.  So, how do you present a package that's jam-packed full of so much value that your prospective clients demand that you maintain the whole package (and your full fee), in case it means they miss out on something?

COMMISSIONS

The total commission charged to a client is the figure they care about, not the percentage you get! 

So if you're going to charge a fee of between $5,000 and $10,000 for selling their home, you'd better show them fantastic value and plenty of good reasons why they should hire you. 

They have plenty of choices nowadays - not just other Agents, but easy to utilise FSBO arrangements, internet advertising, etc.  Think of it this way:  if you were going to shell out $5,000 to $10,000 to someone, what do you expect to get for that? 

WHAT DO YOU PROVIDE TO YOUR CLIENTS?

To enable others to understand the value of what you offer, you need to place a value on what you provide.

Sales people in any field tend to forget about the skills, talents, expertise and experience that they bring to a sales situation because they’ve been there so many times - it's old hat.  You forget that your Clients may never see these situations more than 3 or 4 times in their lives (if that!)

[FIRSTNAME], how about writing down everything you do, how long it takes, why you do it, what benefit the Client gets, and how that provides a solution to your client’s problem.  And now place a value against your time and provision of services.

Once you have competed this task, the value of your service should be clear to you and it’s up to you to make it clear to your Clients.

Is it clear now why, if you're presenting your services correctly, [FIRSTNAME], your Clients would Insist That You Charge Your Full Fee?

If you want some tips as to how to evaluate your service package (or even put it together) email us at mailto:serviceoffer@saleschampions.com.au?send=myserviceoffer

If you would like to offer suggestions to this agent, please email your comments to mailto:comments@saleschampions.com.au and we will forward them on.

INDUSTRY NEWS                                                                                                                Back to top

Our sources on the ground tell us that inquiries from buyers are slowing down.  For what reason?  My suspicion is that buyers are relaxing regarding interest rates on home loans and are now taking it more for granted that low rates are here to stay for some time. 

*-----------------HOT TIP------------------*
Follow-up those follow-ups

That you meant to follow-up,

And didn’t get around to!

*-----------------HOT TIP------------------*

After all, these incredible low interest rates (compared to the highs of 19 and 20% that some of us remember!) have now been on board for over 12 months.  We haven’t had any rate rises for some time from the Reserve Bank, thus creating a stable effect.

What do you think?  Please let us know and we will share your comments with others: mailto:slowbuyersbecause@saleschampions.com.au 

We have been searching the internet for website designs and programmes that our clients could take up.  We have been very impressed with http://www.3steps2000.com/ and a free standard site on http://agent.point2.com that is excellent value, considering it’s free.

Here’s what one of our clients has said about Sales Coaching:

“Since I started my coaching with Dennis, I’ve been managing my time a lot better.  I’ve also been more consistent with my activities, and it’s starting to pay off.

I’m getting more appraisals and they will lead to more listings. The ideas for marketing myself are great, too!”  MH, Brisbane

Call today, and find out how Sales Coaching can help you to turn your business around!  Ph:  07 3255 0739, Dennis  0438 728 161 or Narelle 0412 251 196.

We’re waiting to hear from you!  mailto:readers@saleschampions.com.au?subject=What I Think

WOULDN'T  YOU LIKE TO HAVE PROSPECTIVE CLIENTS CALL YOU?

Does it seem that you have to work very hard to get those listings?  And let's face it, cold-calling is a numbers game, where you have to work the numbers!  But what if you could get prospective clients to call you up, instead of you cold-calling them? 

Isn't it better to have a warm lead than a cold-call?  Wouldn't that save money (no telemarketing costs, greatly decreased phone bill), save time - so it's not wasted on doing appraisals that might come on the market in two years time!   

If this sounds like what you need, click below:

http://www.saleschampions.com.au/integratedmarketingpackage.html

If you think of your career as your business, click on the link to email us for FREE Reports on:

It's Your Business!!  How to Treat your Real Estate Career as a business.

101 Marketing Options A small taste of the myriad of Marketing tactics available to ramp up your business!

Get That Listing! Want to increase your listing success rate?  Have a look at this one!

Marketing Matrix A great way to graphically show you how your Marketing Strategic Plan works!

One Month's FREE Sales Coaching Your GIFT, for organising a FREE mini-workshop for your office.

Sales Systems Analysis        Want to have a Good Hard Look at Your Business and your activities?

We do not rent, sell, or provide any other person, business or organisation with your name and business address, or email address, EVER.

To subscribe to The Sales Coach Newsletter, please click here: subscribehtml@saleschampions.com.au

To unsubscribe to The Sales Coach Newsletter, please click here:
unsubscribe@saleschampions.com.au

Previous newsletters and coaching information can be found at: 
http://www.saleschampions.com.au/

Copyright April 2003 Sales Champions

Narelle Stratford & Dennis McMahon
Sales Champions
26 Cordeaux Street, West End, 4101 Qld Australia

ABN:  2304 241 2603      

Ph:   61 + 7 + 3255 0739

        61 + 7 + 0412 251 196      Narelle Stratford

        61 + 7 + 0438 728 161      Dennis McMahon