By Larry O’Connor
July/August, 2009
In a plummeting real estate market, marketing consultant David Berger unloaded his house earlier this year – from listing to close – in a mere 35 days.
What makes the sales feat all the more remarkable is that while many properties languish unsold for months and even years, Berger even fetched a decent price for his three-bedroom abode in northeast Ann Arbor, Mich.
Whether selling real estate, financial services or Ginsu knives, Berger’s experience is a corollary tale on how to seal the deal in these turbulent economic times.
To spur the sale, Berger did some unconventional things. He opted for a real estate agent from out of town, targeted buyers through the Internet and employed a systematic strategy based on a myriad of contingencies.
He also gritted his teeth a lot.
“The moral of the story is expect a lot of concessions, expect a lot of negotiating and a lot of going around and around,” says Berger, who owns Always on Marketing, Inc. and has sold everything from heavy machinery to hotel rooms at golf resorts. “That’s going to happen. I don’t care what product you are talking about. You are going to have to understand now what negotiating means. Negotiating means biting your tongue. You are going to have to create a win-win situation.”
In a harrowing economy, due diligence is all the more crucial, sales experts say. Sellers need to distinguish their product—and themselves—from competitors, identify potential buyers and anticipate their needs.
Within those tasks are several layers of intricate psychological and observational techniques, which can separate the power seller from the glib Mr. Haney of TV’s “Green Acres” variety. When it comes to convincing savvy consumers to buy, no amount of 1970s buzz phrases or magic potions will cement a transaction, experts say.
“In effect, the close should be a natural conclusion,” says Ed Pritchard, whose Plymouth, Mich.-based Everest Training and Consulting offers courses in tactical sales strategies. “When we talk to people, we talk to them about guiding (the buyer) to discovery. You are saying to someone: ‘You need this.’ They may or may not believe you. If they are interested in it, they are more likely to believe it and take the action you want.”
Pritchard says buyers are prompted to act for two reasons: To gain something of value or to avert a substantial loss.
Of the latter, Pritchard adds, “People are three times as likely to take action to maintain what they have. They don’t want to lose it. That’s the theory of all insurance—to avoid future financial loss.”
For the sales person, the focus needs to be what’s in it for the customer, says Bonnie Knutson, professor at Michigan State University’s Eli Broad College of Business.
“To me, the two most powerful words in selling are ‘which means...,’” says Knutson, who also writes about consumer trends and creative marketing strategies for business publications. “When a sales person is selling, particularly at the close of a deal, they will be talking about the features of the product. If, after talking about the product, they tack on ‘which means,’ you put it in terms of a benefit to your customer.”
For instance, a potential customer in a car dealership isn’t likely to be swayed by a proclamation that a particular model sports a V8 engine, the MSU professor says.
A more effective sales pitch would be, “‘It has a V8 engine, which means when you need that power to pass someone—and your kids are in the back – and you are cutting it close because the other guy is speeding up on you, you can get around safely,’” Knutson says. A wily sales person would likely know the potential customer had children by asking questions or noticing that the person’s keychain had children’s photos on it.
Knutson refers to the practice as finding a client’s “hot buttons,” which often emerge through small talk or simply by observing. Desk photos and office plaques often reveal a lot, she says. “I want to make that human connection,” Knutson says. “If you can find that hot button, that helps differentiate yourself.”
In a desolate real estate market, Jeff Glover stands out by asking the “whys.” The Plymouth, Mich.-based agent hones in on what’s motivating a person to sell a home, which means probing beneath a client’s vague response.
If a person says that they want to move to a nicer neighborhood, Glover pins them down to find out what feature— a good school system perhaps—makes an area attractive.
“Every time I talk to them, I can use better schools to get them to take action,” says Glover, who is just 25 but sold 40 homes for $7 million in 2007 while only working part time in sales. A year later, Jeff Glover and Associates sold 102 homes.
“If they’re asking $150,000 and an offer comes in for $125,000, they may say, ‘We’re not going to take that.’ I say, ‘Remind me again why do you want to move....?’ Selling isn’t telling. It’s asking questions that lead us down the path of a desired result.”
The successful sale may require some introspection.
Glover says he spends $1,000 a month for one-on-one coaching to maintain a positive mindset and improve his overall sales acumen. “Obviously, keeping your mindset strong is important in this market,” he adds.
Although the Internet—including social networking sites and e-mail marketing—may generate more solid sales leads, converting those leads into transactions isn’t always easy, says Dave Bilbrey, a Grosse Pointe, Mich. sales coach who maintains the blog
www.bilbreyonselling.blogspot.com.
“It’s a problem everywhere I go and, really, it shouldn’t be,” Bilbrey says. “I’ve been on sales calls with others where they do all their work in the interview and they forget to ask for the order. Or, if they get a little bit of push back, they give up.”
Those who spurn paying for personal coaching might consider Dale Carnegie or training courses offered through The Employers’ Association, Pritchard says.
In deftly crafting a sales pitch, Berger, the Ann Arbor home seller, wanted his three-bedroom residence to stand out from similar ones on the market.
He did the usual things as a home seller. He had the hardwood floors refinished and added brass door latches to spiff up the exterior.
He also sought out a tough negotiator, which meant listing with an agent outside Ann Arbor real estate circles.
The move paid off. The buyer haggled, but the parties settled for $135 per square foot, which turned out to be $2,000 less than Berger wanted.
“I was blowing my top, but my sales representative is a professional,” Berger says. “He kept the deal in play.”