Coaches Corner Newsletter - Issue #978
 
April 30th, 2020
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Words of a Champion...

For salespeople, there are always constant pressures, influences, and situations that affect your motivation. One of the mistakes that salespeople make is thinking that their motivation, whether it comes internally or through the use of external sources like seminars, books, other competing salespeople’s performance, CD’s, or coaching will last indefinitely. Whatever technique you have implemented in the past or present will not work forever without regular application.

Motivation is like taking a shower. You can’t take a shower once in your life and expect to be clean forever. You need to shower every day, just as you need to focus on maintaining or, better yet, increasing your motivation level every day. You must wash yourself clean of the people and situations in life that reduce your motivation. When your motivation is low, you have a lower probability of going the extra mile that is needed to separate yourself from the competition.

Motivation increases as clarity increases. One reason salespeople have low motivation is because the clarity of their goals and objectives is fuzzy. There is a direct link between motivation and goals. If you have defined and written goals, your motivation will be higher. You will be more capable of handling the storms of problem clients, a thinning pipeline of leads, slumps, and other negative occurrences that happen to all salespeople.

Too many salespeople who are trying to excel falsely assume that high performing salespeople have few challenges. The truth is the higher performing salespeople usually have more challenges. They are just more adept at handling them quicker. It’s logical that they would have more challenges and negative outcomes with prospects and clients because their exposure to more prospects and clients demands that. It’s the law of averages that dictates more people equate to more problems and negative influences that lower motivation.

The secret of these Champion Salespeople is the limited amount of time they allow themselves to be out of focus, off of their objective, and off track to their goals. The universal truth for coaching and training Champion Performing Salespeople for over fifteen years is they spend less time wallowing. When they are off track, they recognize it quicker and do something about it. A Champion Salesperson doesn’t let a negative outcome wipe them out for the rest of the week, day, or even hour like the average sales performer does. They take corrective action on their motivation and attitude . . . now!

Let me give you more caution. Most salespeople overuse money as a motivator. As a new salesperson, money is frequently the supreme motivator. As your career progresses and you begin to realize some of your sales goals and personal goals, money’s influence diminishes. Money ceases to be a motivational tool when you have achieved many of your financial goals in life. Salespeople can encounter regular and prolonged slumps if they haven’t reset their goals once they have achieved success in sales and a good measure of material wealth.

To Your Success,

Dirk Zeller

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Effective Price Verses Value Counseling
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We have seen many marketplaces shift nationally over the course of several years.  The skill of price value counseling is a more essential tool than others in the last ten years.  My contention is most Agents are ineffective or out of practice in this discussion.

The fundamental mistake that most Agents are guilty of is using the wrong terminology.  The buzzword most Agents use is price or price of the home.  This word is incorrect because it’s not about price; it’s about value.  The first step in effective price value discussion is beginning to use the word value instead of price.  We need to focus the client on what the value of the home is today, in today’s marketplace and market conditions.

When we look at price and the influence of price, it’s really fundamentally connected to marketing.  The raising or lowering of the price of something creates a layer or smaller pool of potential purchasers, based on how the potential purchasers perceive the value.  We all make our buying decisions based on value.  Our job as Champion Agents is to position the property relatively close to the value to widen the pool of prospective purchasers.  Price is clearly a function of marketing, not value.

As an example, a ten-year-old BMW 7 Series car has a certain value.  You can price it at $100,000, but the real value of the car is substantially less than that.  In fact, the Kelly Blue Book value is right around $15,000.  What are the odds (pricing this car at $100,000; $50,000; or even $25,000) that you would receive even close to those figures?  As they say in Texas, slim to none, and slim just left town.

To demonstrate our value and why we should be hired, we need to separate price from a value discussion.  We must secure agreement on the value of the property before we proceed to a strategic marketing or price discussion.  In the end, the value of the home is what we are trying to reflect through our CMA.

Too many Agents still believe that price and value are interchangeable, but they are not.  Value relates to what something is really worth; what one could expect to receive in money in the free market.  It doesn’t matter what the value was last year, last month, or even last week.  Value is determined by the conditions and influences of the marketplace.  Too often, sellers get hung up on that fact when the marketplace shifts against them so to speak.  They don’t want to view the reality that their home was worth $750,000 a year ago and today, based on supply and demand, is only worth $680,000.  Value is extended by the scarcity of something and the ease of replacement with similar, equal, or better products or service.  In essence, this all reconnects with the law of supply and demand.

Here are a couple scripts to help you have a price value discussion:

“Mr. Smith, many Agents are more concerned with seeing the listing rather than having a real conversation about the value of your property.  They will talk in terms of price, not value.  They will get you all worked up about the price and set you up for the big surprise.  The question is, do you want the truth now or later?”
“Mr. Smith, let’s agree to talk in terms of value – what your house is worth.  Once we agree on that, we can talk about price, which is really a marketing strategy.  Is that agreeable with you?”
 
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The Four Probabilites of Success
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The Four Probabilities of Success are knowledge, skill, attitude, and activities.  When you work to improve or increase any of these, you increase the odds of becoming more successful and wealthy, improving your relationships, and improving your health.  Everything in life is governed by these four.

Because everything in life is also governed by priorities, one of these four is always more important than the other three.  There is an order of importance in which to attack and improve these four probabilities of success.  Before you read on, I want you to rank or prioritize the probabilities.  Write a 1, 2, 3 or 4 next to each of these.

_____Knowledge
_____Skill
_____Attitude
_____Activities

Don’t proceed until you complete the exercise.  I have completed this exercise with hundreds of audiences over my speaking and training career.  The break down never changes much.  About 5% of people believe knowledge, skill, or activities are the first priority.  About 85% of people say attitude is the number one influencer of increased success.

I think one could make a valid case for attitude being the highest priority; that without a good attitude, your growth is stunted, as well as your earnings and quality of life.  Like many others, I believe that is a logical argument.

My research through working with thousands of successful people has led me to another conclusion.  Most successful people have a good enough attitude to be producing at a much higher level than they currently do.  The barrier to climb to the Champion Agent level isn’t attitude, but activities.  It’s engaging in success producing activities with focus and consistency and allowing your attitude, skills, and knowledge to produce the results you desire.

Too many people want their attitude to get better before they start to engage in a challenging task.  One of the fundamental questions a person who is trying to rise to the Champion level in life must ask themselves is “Does my attitude influence my activities more than my activities influence my attitude?”  Please read that statement again!

Simply stated, does how I feel control what I do?  If you answered yes, then there is a barrier between you and your goals and dreams in life.  This barrier will stop you from becoming a Champion Agent.  If you are waiting for your attitude to improve before you begin doing some of the tougher things you know you need to do as a salesperson, you could be waiting a long time.  You’re like the man who stood in front of the stove and said give me some heat and then I will put wood in!  We have to put the wood in before we can experience the heat.  There is a direct link between your activities and your income.  There is also a direct link between your activities and an improved attitude.  You can’t let whether you feel like doing something that needs to be done control whether you will be successful.

 
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Better Positioning Strategy
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When talking with prospects at a listing presentation we are usually talking about our marketing and advertising pieces.  We often try to draw the prospect to convert to client status through our colorful brochures, Internet sites, and overall exposure.  We are, again, selling through feelings rather than tangible proof of results. 

Because of your positioning strategy, can you prove that you produce more leads or more meaningful ad calls, sign calls, or Internet inquiries?  Does this increase of leads generate more showing activity or more buyer consultations?  Does how you position the property with the real estate agent community result in more showings to more buyers?  The first step is to prove to the client that your positioning strategy generates more showing activity.  A Champion Agent will generate more showing activity than other agents in the marketplace.

Do you have an inventory advantage that creates more showings, as well?  Because, on average, I carried around thirty listings at any one time, it enabled me to cross-market my properties more effectively with a wider reach to generate more showings than many other agents in the marketplace. Increased quantity of leads creates more opportunity for the seller.  More leads generate more showings.  More showings increase the probability of selling the home.  The increased showings can also lead to a high potential sales price in a high demand home.  We all know the more people through a well priced home, the greater the chance of attracting a high-quality buyer and high-quality transaction.  We need to move the prospect step-by-step through each stage to see clear benefits of why they should hire you. 

I also believe better positioning links with a primary rule of real estate sales.  Most people miss this primary rule; even agents miss it.  When we break down the basic rules of real estate this one leads the pack:

Real estate sales are governed by the law of supply and demand.

The law of supply and demand drives real estate sales and real estate values in any marketplace.  It drives appreciation, investment, and activity.  It can also drive list price to sales price ratios, days on the market, and listings sold verses listings taken ratios for most agents.  A Champion Agent will always filter their strategy and positioning and tactics through the laws of supply and demand, and they will end up with far superior stats than other agents.  They will counsel their prospects, customers, and clients on the influence the law of supply and demand is playing in the marketplace.  This is especially true when the marketplace is shifting.  When we shift from a seller’s market (where inventory is low and demand is high) to a neutral marketplace, a Champion Agent will show inventory levels, sales price ratios, and sales per month and will counsel their clients based on where the market is now and where it is heading.  Our job, as Champion Agents, is to inform our clients of the current and emerging market conditions.  The law of supply and demand controls the frenzy in seller’s markets and the slow cautiousness in a heavy buyer’s marketplace. 

By knowing and tracking the marketplace, you can better position your clients to achieve the best results in today’s marketplace.  Our job is to clearly communicate how the law of supply and demand will affect each of our clients and how it is impossible to achieve significant results contrary to the law of supply and demand.  If any agent is promising them those results, they either don’t really understand the marketplace, are overly optimistic and delusional, or lack the skill to be able to really represent their interest at the highest level.  This will become very obvious to prospects if your discussion about the law of supply and demand is delivered with conviction and power. 

We need to tell the sellers and buyers that the reason marketplaces lead up to and explode is because demand is greater than supply . . . it’s that simple!  When supply increases and demand lowers, the activity level goes the other direction. 

Interest rates certainly can affect demand as well.  Interest rates influence the buying power of each person looking for a property.  I believe; however, the largest influence is the law of supply and demand.  We can respond to it far better than we can respond to interest rates. 

Strategic positioning works well with the law of supply and demand.  Effectively executed, it will work to create a maximum benefit for your client based on the odds of the marketplace.

  1. “Mr. Smith, since we position your home more strategically, we increase the number of agents who actually show your home.  With the increased showings, we can increase the buyers and potential offers.  This creates more buzz on your home, which equates to more dollars in your pocket.  Doesn’t that appeal to you?”

  2. “Mr. Smith, one of my primary jobs is to enhance the demand for your home.  Real estate at its core is a supply and demand business.  My job is to increase the demand for your home over the competition in the marketplace.  One way to know if an agent is successful at accomplishing that is to compare the statistics of listings sold versus listings taken.  The broad average right now is _____% of homes actually sell.  My average is over _____%.  Would you agree that we are more effective at positioning your home?”

 
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