Myers Barnes Blog Articles

Video: All Things Come To Those Who Go After Them

Posted by: Myers Barnes | Published: Apr, 15, 2014

Will Rodgers once said that even if you are on the right track you will get run over if you just sit there. Because information, knowledge, and education are only useful when put into action.

The same goes for new home sales training. If you read the books, listen to the videos and attend the seminars, if you don’t put it into action you aren’t going to achieve your gals.

Listen here, and find out the story of under achievement. Find out how to make sure this isn’t your story!

 

Watch More Here



Posted In: New Home Sales Training, New Home Sales Training Video

Tags: ,


Register for The New Rules for New Home Sales webinar!

Posted by: Myers Barnes | Published: Apr, 08, 2014

Click here to register for The New Rules for New Home Sales webinar on Thursday, 4/17 from 12:00-1:00 p.m.!



Posted In: New Home Sales, New Home Sales Management Training, New Home Sales Marketing, New Home Sales Training, Personal Development

Tags: , , , ,


Leak #17 Neglecting Market Share Research – Leaking Profits: Article 20

Posted by: Myers Barnes | Published: Apr, 01, 2014

You are not working in a bubble. You have competition in the new home sales arena, and if you don’t do your market share research you are adding to other leaking profits mistakes you may be making along the way.

How do you stack up in your market against your competitors? Market share is the percentage of business (or sales) a company wields, out of the combined total of all companies in a given market (known as “market potential”). You could have a percentage of the single-family homes, luxury homes, or homes built within a specified geographic area, to name just a few.

You should be aware of your market share statistics so that you know how you’re doing in the “big picture”. When you know the market potential, you have a much clearer view of your opportunities. Can you see where you can increase your market share? Setting a target of growing market share is a great way to build your profits!

There are two ways of defining market share:

1. Percent of sales: For example, a small builder sells $6 million in a market that represents a total of $300 million in sales; this company’s market share is 2 percent.

2. Sales units: A builder sells 50 units per year, out of the 1,500 total units sold by all competitors in this region; the company’s market share is 3.3 percent.

Get factual information about closed transactions in Land Transfers and/or MLS.

Compare only to other new home sales—not resales, short sales, and foreclosures.

Pay attention to the Four P’s: Place, Product, Price, and Process.
Develop product and pricing to your actual market, rather than gut feelings or existing plans.

BOTTOM LINE: A great barometer for your success in a specific market is your market share.



Posted In: New Home Sales, New Home Sales Training

Tags: , , ,


Leak #16: Choosing the Right Sales Approach – Leaking Profits: Article 19

Posted by: Myers Barnes | Published: Mar, 25, 2014

The way you sell is not a one-size-fits-all process. You might lean towards an in-house team of salespeople or rely more on Realtors.

Your company’s size and its actual velocity/absorption potential will dictate which type of approach will be most effective and efficient for you. You should be open to the reality that there are different methodologies to sell to your prospects. Some companies have discovered that they do best by using a combination of sales approaches.
• Realtor staffing
• Builder marketing services
• In-house builder team
• Cross selling
• Quadrant selling
• Full-time Online Sales Counselor
• Hybrid approaches

BOTTOM LINE: Before you stick to one sales approach, try on a few alternatives and explore the potential of each so that you choose the best method for your particular business.



Posted In: New Home Sales, New Home Sales Process, New Home Sales Training

Tags: , , ,


Leak #15: Lack of an Identifiable Sales Process – Leaking Profits: Article 18

Posted by: Myers Barnes | Published: Mar, 18, 2014

Selling is a process, which means it follows a series of identifiable steps in order to progress from prospecting to closing. If you have not developed an actual process and trained your team in this system, then you are leaving a critical role up to chance.

• Level 1: The Anti-process
• Everyone does his or her own thing.
• Success is inconsistent and unpredictable.
• Level 2: The Passive process: Is anyone watching?
• You assume people follow a process, but fail to monitor them or measure their results.
• What gets measured is what gets done.
• Level 3: The Structured process
• The process is tested, monitored, measured, and adjusted to the marketplace.
• Better to have failure with a proven process, than success in the absence of a proven process.

BOTTOM LINE: You must establish and adhere to a sales process in order to generate consistent, measurable results.



Posted In: New Home Sales Process, New Home Sales Training

Tags: , ,


Leak #14: Misusing Sales Meetings – Leaking Profits: Article 17

Posted by: Myers Barnes | Published: Mar, 11, 2014

Are you having sales meetings or just gatherings? What do you achieve in your meetings that you couldn’t do with internal communications (memos, emails)?

A sales meeting should be used to generate business, not just share sales figures and traffic reports. Don’t get me wrong. Meetings are great for sales training and discussing key topics. Just be sure that when you pull together your salespeople, you understand that you do so at a cost. If that meeting isn’t productive, the time was an expense, not an investment in your business. What if, instead of a wasteful meeting, you could have had a sale instead?

Before you determine how you should run your sales meetings (frequency, length, topics goals), do a little math. Multiply the average profit of just one home or homesite sale times the number of meetings per month. Factor in the average commission of each participant. Is it more valuable to sit everyone around a table, munching on donuts, than having them work their prospects?

Bottom line: Have the meeting; just be sure there is a high ROI.
• Never use meeting time for traffic reporting: Refer to Profit Leak #3. If you have a CRM, your reports are observed daily.
• Select the right day: Mondays are traditions, and traditionally, Monday meetings are sales reporting days. Fridays are sales creation days.
• The Principle of 15 minutes: 50-mini-training sessions a year!
• 15 minutes X 50 meetings/year = 750 minutes = 12.5 hours
• “I do not fear the man who practices 10,000 kicks once. I fear the man who practices one kick 10,000 times.” —Bruce Lee
• Gain commitments for weekend appointments. The minimum standard is that every sales pro must have one appointment going into the weekend.

BOTTOM LINE: Make it a profitable investment by using the time to increase business, not sharing reports and having policy sessions.



Posted In: New Home Sales, New Home Sales Management, New Home Sales Training

Tags: ,


Leak #13: Overlooking The Cost of Your Traffic – Leaking Profits: Article 16

Posted by: Myers Barnes | Published: Mar, 04, 2014

You’ve already learned about effective recruiting, proper marketing, staffing your models properly and training your agents to use CRM to build relationships. Is the traffic in your model home being handled effectively and efficiently?

Do you know how much it costs to bring a prospect through the door?

You should be weighing the expenditure of your marketing dollars against the conversion rates. If a builder spends $500,000 each year on marketing, it could factor down to a cost of $300 to $500 for every person. If you’re spending that much to get someone to walk in, what happens if you have a salesperson who has 40 walk-ins and can’t convert any? That’s $12,000 to $20,000, with zero ROI. Now, calculate the number of traffic units over the course of the year and ask yourself if you need to plug another hole.

  • Communicate the cost of traffic to your sales team so they can appreciate the value—or lack thereof—of spending time with every guest who visits.
  • Make the cost of traffic personal and important. Tell them, “If you had to give me $400 for every person who walked in the door, how would you treat them?”

BOTTOM LINE: You’re investing money in driving traffic to your model home. Make sure you’re getting a good return by measuring the cost of those visitors.



Posted In: New Home Sales, New Home Sales Training

Tags: , ,


Leak #12: Failing to Generate Referrals – Leaking Profits: Article 15

Posted by: Myers Barnes | Published: Feb, 25, 2014

When you build new homes you are building a community. When you build a community you are building relationships.

You’re in the relationship business, which means you should focus on the customer experience, every step of the way. When you do this right, you have a satisfied customer. And when you get this happy buyer, you should have customers who will give referrals.

A happy customer is the least expensive marketing tool you have. Their testimonials and referrals are the highest compliment you can receive. But don’t assume they’ll just come on their own. Cultivate your referrals. Establish a system for gathering customer referrals, and follow it!

Remember, you cannot rise above yourself all by yourself.
• Create a formal, company-sanctioned, referral gathering process
• Repetitive versus competitive selling
• If you’re not selling referrals and repeat business, then you’re competing for the sale every day
• Transactional versus relational selling
• Top companies manage relationships more than transactions. Look at your buyers as relationships, not customers
• Use social media and your CRM

BOTTOM LINE: Selling is about managing relationships, so focus on nurturing your happy buyers into productive referral sources.



Posted In: New Home Sales Management, New Home Sales Training

Tags: , , , ,


Leak #11: Ignoring Realtor Participation – Leaking Profits: Article 14

Posted by: Myers Barnes | Published: Feb, 18, 2014

As we talk about leaking profits in the new home sales industry it’s important that you pay attention to real estate agent participation. You need to be aware of how much of your business is coming from realtors. Whether it’s too much, or too little it’s important to take note so you can plug up holes in your profitability.

Do you know what percentage of your sales can be attributed to a real estate agent? The number of homebuyers who use a real estate agent rose to 89 percent in 2013, showing a steady increase from the 69 percent statistic in 2001. How does your number compare?

By making your program more Realtor-friendly, you can close up another hole in your profitability!

  • Find the right balance.
    • Too much is as bad as too little. Aim for no more than 60 to 70 percent.
    • Too much Realtor participation means your salespeople aren’t closing enough of their own sales.
  • Never penalize a salesperson’s commission for Realtor-involved sales.

BOTTOM LINE: Realtors play an important role in your new home sales; be sure to keep their participation at a healthy level.



Posted In: New Home Sales Management, New Home Sales Training

Tags: , , ,


Video: Driving for a Better Price

Posted by: Myers Barnes | Published: Feb, 11, 2014

Since the dawn of time consumers have been trying to convince sales people that price is the most important….but we know this isn’t the case. There’s a huge difference between price and value.

Asking a room full of homebuyers what the most important thing is in shopping is far different than what sales people believe is most important.

Learn in this video how to effectively respond to the price only mentality of home shoppers.

Watch more here:

 



Posted In: New Home Sales, New Home Sales Training, New Home Sales Training Video

Tags:


Leak #10: Overlooking Cancellation Recovery Ratio – Leaking Profits: Article 13

Posted by: Myers Barnes | Published: Feb, 04, 2014

We’ve already learned that there are many places where profits leak from your new home sales business. We’ve explored sales activities, proper staffing, recruiting, marketing, giveaways, and compensation. But do you measure the number of cancellations you have?

It’s important to know how many and why sales don’t come to fruition. More importantly, are your salespeople recovering any of those sales that are circling the drain?

Think about it. Maybe someone cancelled the sale due to health reasons. Three or six months later, the issue has passed and they’re ready to buy. Did your salesperson stay in touch?

Homebuyers cancel for a variety of reasons. But just because they cancel does not mean they’re permanently paralyzed! By staying on top of cancellations, you can potentially reel a sale back in, plugging up another profit leak.

BOTTOM LINE:
Contract cancellations aren’t necessarily a permanent loss. Salvage the investment of time by encouraging your salespeople to recover those sales by maintaining contact—and measure their results.



Posted In: New Home Sales Management, New Home Sales Training

Tags: , ,


Your Personal Invitation to The New Rules For New Home Sales!

Posted by: Myers Barnes | Published: Jan, 28, 2014

Click HERE to register TODAY!

 


 



Posted In: Leadership, New Home Sales, New Home Sales Training, Personal Development

Tags: