Isn't it great! Someone called you about your homes.
They saw an ad, heard about you from a friend or maybe they saw your name in the Yellow Pages or on the side of your truck. Whatever, they called.
Having a prospect call is the best way to weed out the time wasters from the buyers. If the very first thing you try to do is get an appointment with them, you are doomed to wasting a lot of time and creating an atmosphere in your company that actually discourages making appointments.
Instead of jumping on this caller to come and see you, there is a step in between that should be added if you're not already doing it. Remember, a good and a bad first appointment both take about 2 hours. Four bad ones a day and guess what, you're out of time!
While you have them on the phone, you need to ask three simple questions. You don't have to actually quiz your prospect over the phone, but rather ask the questions in a conversational way. For some reason, people will tell you just about anything over the phone including family secrets. I remember one caller a couple of years ago that told me that her mother hated her and she was sick of her marriage. Wow! I'll bet I found out more about her in 3 minutes on the phone than I could have in a week of therapy. And I also found out that she was not qualified for a home, which was the ultimate goal.
The three questions are very simple, but very important.
Do you own your land?
Have you been to a bank or been qualified?
And are you ready to build this year?
It doesn't matter in what order you ask them, just make sure you write down their answers.
Here is my scoring system. If they answer yes to all three questions, don't let them off the phone until you make an appointment and very soon. Get the coffee pot started, they are ready and eager to purchase a new home. It's yours to lose.
If they answer yes to two questions, they are good prospects and you should keep in touch with them and help them until they can answer the one question they missed. If its land, find them some; if its financing, call M&T or your local lender and if they are in no hurry, explain interest rates and how materials go up about 4-8% a year. Try not to make a sales appointment with them until they can answer all three questions. And who do you think they will call when it's time to make that appointment? Yup, you! The one that helped them.
If they can only answer one question with a yes, no matter which one, send them a new home packet and put them on your tickler list. They might be buying, but not right away. If they couldn't give you a "yes" to any question, send them a mini sales packet and a nice Thank You letter. They are not prepared to buy and will probably buy used on the spur of the moment. Always send the letter however, you never know who they will tell about how nice you were.Of the four types of prospects, who would you like to work with?
If they simply walk in off the street, be prepared to talk with them for up to two hours and you'll probably know within the first three minutes if they are buying. Encouraging people to call is the best way to qualify.
Thursday, August 30, 2007
Green and Mean Modular Homes
Kevin Flaherty, Vice President of Genesis Homes was recently quoted in Multi-Housing News in an atricle about modulars in the multi family market. Here is part of the article which points out a couple of facts that are very important to your prospects. Use this information to get their attention and possibly make a sale.
"... due to the fact that each modular unit has to be built to withstand the rigors of transportation and being picked up by crane to be lifted into place, experts say modular construction generally creates a stronger product.
Furthermore, Flaherty points out, the modular approach to building offers a number of environmentally friendly advantages. A large amount of waste material is recycled in the factory, he reports, and with modular building methods, "we can utilize far longer lengths of lumber. As a result, walls and floors contain fewer seams, Flaherty says. Modular homes are typically tighter and thus more energy efficient than standard construction.
Overall, Flaherty adds, "Modular construction is a more efficient way of building." Rather than having numerous trucks drive to job sites with repeated deliveries of materials, large deliveries of materials and people instead drive to one central spot.
Furthermore, he notes, modular construction generates about 2 pounds of waste per square foot constructed, compared to 4.4 pounds of waste, according to a 1996 study sponsored by the National Association of Home Builders. Plus, Flaherty says, studies have cited a dramatically reduced level of CO2 emissions—up to 62 percent fewer—with modular construction."
"... due to the fact that each modular unit has to be built to withstand the rigors of transportation and being picked up by crane to be lifted into place, experts say modular construction generally creates a stronger product.
Furthermore, Flaherty points out, the modular approach to building offers a number of environmentally friendly advantages. A large amount of waste material is recycled in the factory, he reports, and with modular building methods, "we can utilize far longer lengths of lumber. As a result, walls and floors contain fewer seams, Flaherty says. Modular homes are typically tighter and thus more energy efficient than standard construction.
Overall, Flaherty adds, "Modular construction is a more efficient way of building." Rather than having numerous trucks drive to job sites with repeated deliveries of materials, large deliveries of materials and people instead drive to one central spot.
Furthermore, he notes, modular construction generates about 2 pounds of waste per square foot constructed, compared to 4.4 pounds of waste, according to a 1996 study sponsored by the National Association of Home Builders. Plus, Flaherty says, studies have cited a dramatically reduced level of CO2 emissions—up to 62 percent fewer—with modular construction."
Are you on the Internet?
Just for fun, try searching the Internet for your business name. If you can't find it, then nobody else can either.
The National Association of Realtors found that the use of the Internet to search for a home is rising rapidly, increasing from only 2 percent of buyers in 1995 to 77 percent in 2005. When asked where they first learned about the home purchased, 24 percent of buyers identified the Internet, which is up from only 2 percent in 1997.
Your prospects are getting most of their information about modular homes on the net. If you think you can't afford to put up a big website, look at Yahoo.com or other websites that offer very, very inexpensive starter sites. Most are FREE! You can all afford that. Put a link to your manufacturer's site and POW! you've created a presence on the web.Add some links to other sites that feature your products and you've added value to the site. You only have to get one person to buy a home from your web page and you've paid for it almost to the end of time.
Maybe you should get the kid down the street to get one up and running, pay a hosting company to put it on the web and have email sent to your business name.However you do it, just do it! Add your website address to your business card, letterhead and return mailing labels. You will be surprised how many people look at your site.
The most important thing is to keep it fresh and up to date. Websites are like fresh bread, after a while they get stale and nobody opens the bag. 5 minutes a week is all you need. Go forth and be found!
The National Association of Realtors found that the use of the Internet to search for a home is rising rapidly, increasing from only 2 percent of buyers in 1995 to 77 percent in 2005. When asked where they first learned about the home purchased, 24 percent of buyers identified the Internet, which is up from only 2 percent in 1997.
Your prospects are getting most of their information about modular homes on the net. If you think you can't afford to put up a big website, look at Yahoo.com or other websites that offer very, very inexpensive starter sites. Most are FREE! You can all afford that. Put a link to your manufacturer's site and POW! you've created a presence on the web.Add some links to other sites that feature your products and you've added value to the site. You only have to get one person to buy a home from your web page and you've paid for it almost to the end of time.
Maybe you should get the kid down the street to get one up and running, pay a hosting company to put it on the web and have email sent to your business name.However you do it, just do it! Add your website address to your business card, letterhead and return mailing labels. You will be surprised how many people look at your site.
The most important thing is to keep it fresh and up to date. Websites are like fresh bread, after a while they get stale and nobody opens the bag. 5 minutes a week is all you need. Go forth and be found!
Don't Overlook the Garage for Extra Profit
In the "good old days" (in my case - 1950's), my family home had a detached garage in the back yard with a dirt floor and storage in the rafters. It smelled funny and my dad used to kill chickens on a big wooden block behind it. Good Times!
Things are different today. They are showcases for car collections, hobbies, extreme workshops as well as riding power mowers and tractors, and some of the wildest decors you've ever seen.
I have a couple of friends that have taken their garages to the max.
Danny has turned his garage into a 1940's style gas station interior complete with a coffin type Coke cooler.
Paul has the ultimate Dale Earnhardt #3 garage with an actual copy of one of his cars (not the real thing, too bad). There are tool chests and tire racks and all the neat stuff he can find about The Intimadator.
The bottom line to all this is that we tend to sell to the girls and forget the guys. If you want to make points with him and keep him interested in the process, ask him what he wants in a garage. His ears will perk up and his heart will beat faster and he will open his wallet.
Here are some Garage facts from the NAHB:
In 1950, most new homes were built without a garage (53 percent), a single carport (6 percent) or a one-car garage (41 percent). By 2004, the number of new homes built with a one-car garage or less had shrunk to 17 percent, with 83 percent of new homes having a 2-car or larger garage.
The percentage of new homes with 3- or more car garages has doubled from 10 percent in 1991 to 20 percent in 2005.
The standard size of the garage door has grown from 7 by 9 feet to 8 by 10 feet for a two-car garage bay to accommodate today's larger sports utility vehicles.
The average lot size for new homes has decreased from 10,000 square feet in 1990 to 8,500 square feet today.
The average size of today's three-car garage is approximately 900 square feetFor the typical garage in today's custom home, builders should allow 12 feet of width per vehicle and a depth of at least 24 feet.
Things are different today. They are showcases for car collections, hobbies, extreme workshops as well as riding power mowers and tractors, and some of the wildest decors you've ever seen.
I have a couple of friends that have taken their garages to the max.
Danny has turned his garage into a 1940's style gas station interior complete with a coffin type Coke cooler.
Paul has the ultimate Dale Earnhardt #3 garage with an actual copy of one of his cars (not the real thing, too bad). There are tool chests and tire racks and all the neat stuff he can find about The Intimadator.
The bottom line to all this is that we tend to sell to the girls and forget the guys. If you want to make points with him and keep him interested in the process, ask him what he wants in a garage. His ears will perk up and his heart will beat faster and he will open his wallet.
Here are some Garage facts from the NAHB:
In 1950, most new homes were built without a garage (53 percent), a single carport (6 percent) or a one-car garage (41 percent). By 2004, the number of new homes built with a one-car garage or less had shrunk to 17 percent, with 83 percent of new homes having a 2-car or larger garage.
The percentage of new homes with 3- or more car garages has doubled from 10 percent in 1991 to 20 percent in 2005.
The standard size of the garage door has grown from 7 by 9 feet to 8 by 10 feet for a two-car garage bay to accommodate today's larger sports utility vehicles.
The average lot size for new homes has decreased from 10,000 square feet in 1990 to 8,500 square feet today.
The average size of today's three-car garage is approximately 900 square feetFor the typical garage in today's custom home, builders should allow 12 feet of width per vehicle and a depth of at least 24 feet.
Are Affordable Homes the Answer for YOU?
Just what is "Affordable Housing"?
According to HUD, affordable housing is best described in their statement on the subject:
"Who Needs Affordable Housing?More people than you might realize. The economic expansion of the 1990s obscured certain trends and statistics that point to an increased, not decreased, need for affordable housing. The generally accepted definition of affordability is for a household to pay no more than 30 percent of its annual income on housing. Families who pay more than 30 percent of their income for housing are considered cost burdened and may have difficulty affording necessities such as food, clothing, transportation and medical care. An estimated 12 million renter and homeowner households now pay more then 50 percent of their annual incomes for housing, and a family with one full-time worker earning the minimum wage cannot afford the local fair-market rent for a two-bedroom apartment anywhere in the United States. The lack of affordable housing is a significant hardship for low-income households preventing them from meeting their other basic needs, such as nutrition and healthcare, or saving for their future and that of their families."
The questions you have to ask yourself are very simple. Am I building homes right now? Am I stuck in trying to build what I've always built? Are you going to be in business next year?
Tough questions. One of the real tough things to do right now is to look in the mirror and answer them truthfully! As they say, the first step to recovery (profitability) is acknowledgement.
You manufacturer has a lot of homes under 1,600 sq ft that are easy to build. There has never been a better time to go after that segment of the market that you've neglected because you were too busy building the big houses. Oh sure, the profit is smaller and you might have to build 2 or maybe 3 to equal what you made before, but isn't that better than being closed!
According to HUD, affordable housing is best described in their statement on the subject:
"Who Needs Affordable Housing?More people than you might realize. The economic expansion of the 1990s obscured certain trends and statistics that point to an increased, not decreased, need for affordable housing. The generally accepted definition of affordability is for a household to pay no more than 30 percent of its annual income on housing. Families who pay more than 30 percent of their income for housing are considered cost burdened and may have difficulty affording necessities such as food, clothing, transportation and medical care. An estimated 12 million renter and homeowner households now pay more then 50 percent of their annual incomes for housing, and a family with one full-time worker earning the minimum wage cannot afford the local fair-market rent for a two-bedroom apartment anywhere in the United States. The lack of affordable housing is a significant hardship for low-income households preventing them from meeting their other basic needs, such as nutrition and healthcare, or saving for their future and that of their families."
The questions you have to ask yourself are very simple. Am I building homes right now? Am I stuck in trying to build what I've always built? Are you going to be in business next year?
Tough questions. One of the real tough things to do right now is to look in the mirror and answer them truthfully! As they say, the first step to recovery (profitability) is acknowledgement.
You manufacturer has a lot of homes under 1,600 sq ft that are easy to build. There has never been a better time to go after that segment of the market that you've neglected because you were too busy building the big houses. Oh sure, the profit is smaller and you might have to build 2 or maybe 3 to equal what you made before, but isn't that better than being closed!
Beyond Wait and Hope
I just sat down and opened the latest issue of Professional Builder and guess what....an article reinforcing what I've been saying about our current housing slump and what to do about it.
The article is written by John Rymer, a Professional Sales Trainer, in the August, 2008 issue.Here are the Basics according to Mr. Rymer:New Home Builders frequently choose one of two paths:
(1) Hold a regular pity party for themselves and their fellow builders, waiting and hoping a better market comes along soon; or (2) Take control of their own destiny and commit to becoming a better sales professional.
Step #1: Improve your sales presentation skills.
Step #2: Re-energize your real-estate agent initiatives.
Step #3: Get re-acquainted with your past customers.
If you don't get Professional Builder and would like a copy of this article, drop me a line and I'll send one out today.
The article is written by John Rymer, a Professional Sales Trainer, in the August, 2008 issue.Here are the Basics according to Mr. Rymer:New Home Builders frequently choose one of two paths:
(1) Hold a regular pity party for themselves and their fellow builders, waiting and hoping a better market comes along soon; or (2) Take control of their own destiny and commit to becoming a better sales professional.
Step #1: Improve your sales presentation skills.
Step #2: Re-energize your real-estate agent initiatives.
Step #3: Get re-acquainted with your past customers.
If you don't get Professional Builder and would like a copy of this article, drop me a line and I'll send one out today.
9' CEILINGS - Great opportunity for profit!
Most of your prospects want 9'0 ceilings on the 1st floor. That's great and will put some extra profit in your pocket. But there are lots of great options that can be added once a 9' ceiling is chosen by your customer.
1. Option 42" wall cabinets in place of the standard 30".
2. Add a 24" soffit and recessed lights above the cabinets.
3. Add transoms above the front door and windows.
4. Suggest crown molding in the main rooms and hall.
5. And what about 8'0 interior doors.
When you add these items to a house you'll have a happy customer
1. Option 42" wall cabinets in place of the standard 30".
2. Add a 24" soffit and recessed lights above the cabinets.
3. Add transoms above the front door and windows.
4. Suggest crown molding in the main rooms and hall.
5. And what about 8'0 interior doors.
When you add these items to a house you'll have a happy customer
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