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What Consumers Wont Care About in 2008

The first quarter of any new year can be final jeopardy for many new ideas. It’s a critical time that begins with the roll out of many new programs, promotions and products that falter, fizzle and fall flat on their face. The success or failure of these new offerings set the tone for the outlook and profitability of the business for the entire year.

“The major reason for these first quarter flops is that small business owners don’t take the time to find out what their customers care about and desire,” says executive business and marketing coach Jimmy Vee. “The entrepreneur dreams up, creates and rolls out what they want to sell…not what their customers want to buy. It’s a complete mismatch.”
Executive business and marketing coaches Jimmy Vee and Travis Miller, say that business owners, entrepreneurs and sales professionals across the country have survived final jeopardy and seen dramatic increases in leads and sales due to implementing the success, marketing and time management strategies of the duo, attracting customers in nontraditional ways.

“You don’t have to as smart as a Jeopardy champion to make your new programs take off,” says Vee, co-author with Miller of Gravitational Marketing: The Science Of Attracting Customers (John Wiley & Sons). “Take a lesson from Alex Trebek, it’s about asking better questions of the people who are most likely to buy what you want to sell.”
Jimmy Vee and Travis Miller have created a list of things customers don’t care about, so business owners and entrepreneurs can create products, programs and promotions that will attract customers and have them begging to buy instead of turning a blind eye.

The Top 9 Things Customers Don’t Care About:

How good you are at what you do. They only care about how good you are at who you are and how you can help them get what they want.
Your education, your certifications or your designations. They only care about how what you know can help make their lives more enjoyable, simple and prosperous.
Your brand. They only care that the experience of doing business with you is sensational.
You saying you have great service. They only care about getting great service.
5. How much you charge. They care about getting value for their money.
How you feel today. They care about feeling good themselves and having a positive day.
Why you can’t do something. They only care about fast, easy solutions.
How long you’ve been in business. They only care about how you can solve their problems under today’s conditions.
How cool or slick your marketing looks. They care about how your product or service can save them time, relieve them of pain, help their family or put money in their bank account.

Jimmy Vee and Travis Miller.

You must deliver what consumers want

Building trust and proving yourself as a reliable agent takes time and you must deliver what consumers want,
Consumers are looking for help and information and we need to learn how to become a better resource to the consumer.

Digging Deep into the Relationship between Consumers and Their Agents

The key to success in the real estate industry, say Power Brokers, is maintaining and nurturing a healthy relationship between consumers and their agents.

“We need to have a better understanding of the models we use within the real estate industry and the way in which they will attract the consumer,” said John Featherston, president and CEO of RISMedia, and on of the moderators of the company’s 12th Annual Power Broker Forum, held during the Annual NAR Conference & Expo.

“Building trust and proving yourself as a reliable agent takes time and you must deliver what consumers want, when they want it, and how they want it,” said Laurie Keenan, president of Prudential Real Estate Affiliates. “Understanding where the consumer is and what they want is the first step in establishing this relationship.”

Every agent needs to have a system in place that will bring the agent and consumer together, she said.

“In uncertain times, the number one thing everyone is looking for is certainty,” said Tami Bonnell, president, U.S. Organization, EXIT Realty Corp. “Agents need to take their knowledge and share it with the consumer. For too long, dotcoms and other media have been taking Realtors’ knowledge and putting their own spin on it, causing the consumer to get two different sets of information. Realtors need to be consistent with their service, so the consumer doesn’t go elsewhere for that information.”

The sharing of information has never been more important, according to the eight panelists. With mortgage troubles and higher inventories, it’s more important than ever to not only educate consumers but also ensure that agents are as informed and knowledgeable as possible.

“The information you provide draws the consumer to you. People are going to go to whoever is doing the best job of getting them the information they need,” said Laurie Keenan, president, Prudential Real Estate Affiliates.

Added Dottie Herman, president & CEO of Prudential Douglas Elliman: “We have to take control of our industry. Give consumers the information they want and need-whether that’s directly from you or on your Web site. Listen to your consumers and what they have to say, what they are asking for.”

And just as agents need to listen to consumers, brokers must do the same with their agents, said Sherry Chris, president & CEO of Better Homes & Gardens Real Estate. “For the first time in a long time, agents are going to their broker/owners and looking for help,” she said.

Brokers can help their agents by providing them with the proper tools and information to figure out what technology is best for them and their business.

“Technology companies are constantly moving forward and have forced us to open our eyes and see what the consumer needs-good communication,” said Chris. Using the available tools can only help real estate professionals foster the relationships they have with their clients, she said.

Added Jim Sherry, co-moderator and president of Innovative Solutions: “We need to know how to make change work for us while at the same time keep up with technology and current trends. Knowing how to share our information and put forth a positive image is key.”

“We have the chance to get back to the basics,” said Margaret Kelly, CEO of RE/MAX Int’l. “Consumers are looking for help and information and we need to learn how to become a better resource to the consumer.

“We can’t let intermediaries come in between the consumer and the agent,” said Kaira Sturdivant Rouda, president, Real Living. “We have to be at the top of the information-giving chain.”

Being open to change and keeping up with the ways in which different generations like to receive their information will be beneficial in the long run.

“We need to weigh the possibilities and figure out the best way to work with the consumer, whether it be as a solo agent or a team,” said Pam O’Connor, president & CEO, Leading Real Estate Companies of the World. “We want to help the next generation of home buyers become successful in their endeavors.”

By keeping the lines of communication open, real estate practitioners are remaining competitive and showing consumers that they are aware of the changing industry, said Annie Hanna Cestra, COO & EVP, Howard Hanna Real Estate Services.

“Leaders have to illuminate the path for success,” said Featherston. “It’s the only way you will thrive and be profitable.”

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How to thrive in 2008

"Transforming the Market in 2008," a book written and published in just one week at the National Association of Realtors conference in November, reveals what agents are doing today to get their listings sold.

Here's what the agents who contributed to "Transforming the Market in 2008" report is working in today.

1. Make your listings stand out: Staging is critical. One agent suggested walking through each room with the sellers and dividing what must be done into one of three categories: "necessary changes," "you really ought to," and "desirable changes." Sellers are often overwhelmed at how much they may have to do to make their houses saleable. This strategy allows the sellers to identify what is absolutely critical as compared to what is desirable.

2. Provide financial incentives: A large number of agents are having sellers use financial incentives to attract buyers. Strategies include contributing money to closing costs, offering a higher cooperating commission to buyers' brokers, and paying the buyers' homeowner association dues for one year. Two additional strategies are to buy down the buyer's interest rate for one to three years or to purchase a home warranty for the buyer.

3. Avoid chasing the market down: Agents had a variety of strategies to help sellers be more realistic. Among these were discussing absorption rates and how they relate to the market. For example, if there is eight months of inventory on the market, the probability that the property will go under contract in a given month is 12.5 percent. The probability that the property will not sell is 87.5 percent.

A second approach is to ask sellers how much time they have to sell their property and whether they are willing to wait for the market to come to their price. You could also ask whether the sellers want to run a sprint or a marathon. Follow up by asking what happens if their house does not sell.

The third alternative is to show sellers how well-priced properties stay on the market a shorter period of time. If prices are declining, the sellers have a choice. They can be the trend setters who get their property sold or the sellers who chase the market down.

Finally, you can ask sellers which section of the multiple listing service that they want to be in: the "solds" or the "expireds."

4. Offer strategies: One strategy that we used for many years in California was to obtain a price reduction whenever the seller writes a counteroffer at less than asking price. This puts additional pressure on the buyers to act. Also, many sellers become discouraged when they receive an especially low offer. Instead of becoming discouraged, tell them to feel good about generating an offer in this market.

5. Show the sellers how much they're saving: When the seller is purchasing a less expensive property, calculate how much the seller saves each month when they are in their new property. For example, if the seller's mortgage will be reduced by $1,000 per month, that represents a $12,000 savings per year. Each month they don't sell costs them another $1,000. On the other hand, when prices are going up, show them how much they gain by buying a trade-up property. If your clients are listing a $300,000 property and they are purchasing a $500,000 home, calculate how much your current market has declined. Assume the market has declined by 5 percent. The sellers will reduce their price on their $300,000 property by $15,000. The same 5 percent reduction results in $25,000 on the $500,000 property. Thus, the seller picks up an additional $10,000 in appreciation by purchasing a more expensive property.

6. Reverse contracts: This may be the most innovative idea in the entire book. When the buyer is having difficulty deciding about purchasing a specific property, the listing agent can launch the negotiation by asking the seller to issue a "reverse contract." This involves the seller drafting an offer to the buyer, generally at a price slightly under asking price. While this may not always work, it is an excellent way to see whether the buyer is actually serious about purchasing.

7. Start talking about the benefits of home ownership, the pride in neighborhoods, and taking a positive approach to the market and to life in general."

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