There is a veritable geyser of data tracking housing today. From existing-home sales, to house prices, to new-home permits, to starts—housing metrics abound.
We Won't Lose a Sale Over Value
Readjust your sales team's approach and get a leg up on the competition
In a very difficult sales environment, I'm hearing the best sales professionals tell me their sales presentation is themed around “We won't lose a sale over value.” If you are thinking it sounds as if the sales agent is trying to negotiate a price before they even know the customer's needs and priorities, you need to know more about how these top sales professionals weave “lose no sale” into their presentations.
Begin by understanding that every customer today is looking for value. They say it in a variety of ways: What's the discount? What's the deal? What's the lowest price you will accept? How do you compare to short sales? No matter how they say it, the underlying priority is the value they get for the home they plan to purchase. Also understand that you must empower your sales team to know that you really won't lose a sale over value. But before you can say “they'll give away the farm,” step back and understand that this initiative is not about out-discounting the competition, but having a well-researched market value of your homes before reviewing an offer.
Step 1 is to have sales professionals understand that you can't lose a sale over value unless you know who the competition is and the specifics of the deal the competition has offered the prospective buyers.
Step 2 is to have the sales professional get a full understanding of (a) How your homes compare to what the customer had in mind in a home and community, and (b) How you compare to the competition. Don't be afraid of either question. Remember, if the home the competition was offering was a perfect fit, chances are your customer would already have purchased it. The more likely scenario is that they like the competitor's pricing or discount but want your location, features, home site, floor plan, etc.
Step 3 involves performing a detailed comparison of “us vs. them” where values are assigned for differences between your home and the competition. It's best to let the buyer choose the individual price they place on items as they will become engaged in the process and have ownership as its outcome.
Now that you have a well documented offer in hand, you can make an informed decision on the appropriate price you can place on your home. Holding your sales team accountable for market information is both essential and will ultimately lead to more sales.
So start your next sales meeting with, “We won't lose a sale over value.”
|John Rymer is the founder of New Home Knowledge, which offers sales training for new home builders and real-estate professionals. You can reach him at email@example.com.|