Posted by Brian Powers(MI) on July 04, 2003 at 13:15:20:
Posted by Brian Powers(MI) on July 04, 2003 at 13:15:20:
Secret of Success with sellers and buyers. - Posted by GL - ON
Posted by GL - ON on July 04, 2003 at 11:41:27:
Just finished reading a book on sales success that contained some ideas that about lifted me off my chair.
The book is You’re Working Too Hard To Make The Sale by Bill Brooks and Tom Travisano.
Here it is in a nutshell:
You are about 50 or 100 times more likely to succeed in selling a customer if they like and trust you.
If they like and trust you, they not only buy from you regardless of other considerations like price and features, but they remain loyal to you through thick and thin.
Most people dislike and don’t trust sales people.
But you can make them like you if you sympathise with their deepest fears. You don’t have to do anything, just sympathise.
You can do this by speaking a simple phrase, early in the meeting. The right words will create a bond between you.
The authors give the example of a sales person selling to a purchasing agent. Using the following phrase early in the sales process is supposed to make him your buddy. “The best products are safe because they’re easy to understand. So, you don’t need to move mountains to know what they’re all about”.
I know it sounds corny but somehow I believe it works. Largely because I think I have inadvertently done the same thing on occasion, and it worked. Furthermore I’m sure if anyone tried the same thing on me, and managed to hit the right button, it would work like a charm.
Any thoughts? Have you ever spoken to a buyer/seller, and used a phrase that turned them into putty?
Re: Secret of Success with sellers and buyers. - Posted by Joe Kaiser
Posted by Joe Kaiser on July 05, 2003 at 15:19:51:
No, not putty, silly.
I can tell you it’s not about a particular phrase. Frankly, I read
your magical phrase 3 times before I understood it (I think).
It is about liking and trusting, though.
We’ve talked about this very thing for years, and it is crazy that
some people write up offers and hand them to their agent to
present. That’s like playing golf with only half your clubs and
wondering why you didn’t score well.
Getting into the seller’s kitchen is absolutely critical. It makes
everything else soooo much easier that do attempt this business
any other way is crazy.
There are five simple steps here . . .
Back off and just listen
Get on the same page
Mix things up
Draw them the treasure map
Show them where the bodies are buried
You’ll notice that step #1 is where this process of “liking and
trusting begins” and it carries throught step #5, building every
step of the way.
Get yourself in their kitchen and make friends, solve problems,
and get paid.
Gil, here’s another book for you - Posted by Robert Campbell
Posted by Robert Campbell on July 05, 2003 at 10:50:55:
In your post, I quote …
“The best products are safe because they’re easy to understand. So, you don’t need to move mountains to know what they’re all about”.
As far as I know, this came from the great book titled “You Can’t Learn How to Ride a Bike by Attending a Seminar” by Sandler.
There are many other key sayings to use that will also build trust and credibility in your behalf.
This book, together with High Probability Selling by Worth are my two favorites.
Make them part of solution - Posted by Craig-SoMD
Posted by Craig-SoMD on July 04, 2003 at 23:10:30:
I have found great success in having the person I am communicating with be part of the solution. My “customer” is usually a seller in distress. I lead them to the effective solution by giving them ideas, but I am most effective if they determine the course of action that I want to propose is something they discovered for themselves.
Point well made. - Posted by William Bronchick
Posted by William Bronchick on July 04, 2003 at 20:04:59:
People always ask me at seminars, “why should I run a newspaper ad, bandit sign or postcard - everyone else is already doing it?”
The reason is exactly the point you made - it’s not necessarily about the product, but about how the seller likes dealing with YOU. Think about the last time you bought a car or other major purchase - didn’t liking the salesman have something to do with the decision? There may be 10 “We Buy Houses” ads in the paper, but there may be something particular about your voice, your demeanor or your ability to listen that makes a seller want to deal with you!
Probably not along the same lines… - Posted by Ben (NJ)
Posted by Ben (NJ) on July 04, 2003 at 16:15:21:
but I think it was Joe Kaiser who once said he used the following “look, I need another problem property like I need a hole in the head. If you want me to take it off your hands it’s going to have to be on my terms and at my price”. Brilliant line in my opinion. Only a truly motivated seller would even continue the conversation after that point!
Re: Secret of Success with sellers and buyers. - Posted by Brent_IL
Posted by Brent_IL on July 04, 2003 at 14:00:22:
?I have a phrase that I adapted from the lyrics of one of Jon Valjon?s (sp?) songs in Les Mis. I use it when we are near the end of negotiations to reassure the seller that he is on the right path.
?There are no conditions; no bargains, or petitions. The simple truth, that?s what it?s for. The simple facts, and nothing more.?
Of course, there are many conditions, but at this point its irrelevant.
I?ve found that, for me, negotiations work more smoothly if I down play my part in the acquisition process. By using an appeal to a higher authority, a negotiation evolves to the sellers and me striving against the faceless autocracy to get him what he needs. Part of the negotiation is ?out of my hands.? The words that I’m saying don’t have to follow linearly. At times they don’t have to make sense if it sounds right.
?Brent, you?re not hearing me. You keep talking about 6% as if it?s a real down payment. And you want me to pay for the closing on top of that. You’re not even in the ballpark. I told you I want 30%, and I absolutely need at least 25% down in cash.?
?I can appreciate that, Mr. Seller, I do want to get you the cash you say you need, but I have an obligation to operate within strict company guidelines regarding initial cash outlays or I?ll be looking for a new job. I?m a Member of the LLC, but I?m only a manager, remember? (or I?m the Secretary of our corporation and I double as a property buyer for our first-time homebuyers because we are a frugal company.)
(Slight pause) Hmm.
You know, you want cash; but it just occurred to me that you ?could? have ? ?
I also like telling people up front that if we can?t make a deal now, I have nothing to add and will not be back.
?Mr. Seller, with your permission, I’d like to tell you a little bit about myself, what we’re trying to accomplish, and how we work.
I am part of a group that buys houses and either equity shares or lease-options the house to younger couples that are looking for their first home. We aren?t a charity, but we try to minimize the difficulties facing first-time homebuyers, so flexibility is very important to us. The reason I asked for you both to be here is because tonight is the only time we will have to discuss the financial details. I don’t think anything is ever accomplished with endless offers and counter-offers. (My real estate broker) felt that we could come to a mutual understanding tonight that would be good for both of us. If we can reach an agreement, the next time you see me will be at the closing. If we can’t get together, then I’ll be on my way without tying up any more of your valuable time. That’s fair isn’t it? (WAIT FOR REPLY)
Mr. Seller and Ms Seller, I don?t know a lot about this property, so the only way I?m going to learn is to ask a lot of questions. Sometimes the questions sound like stupid questions. If they are dumb questions, just give me a whack on the side of the head and tell me to get unstuck. But, Mr. Seller, my experience is in finance. I?m asking questions because I am searching, or looking to find a way to make this good for both of us. O.K.?
If we can come to an understanding this evening, how soon would you like the paperwork completed and this deal done …"?
Clear Honesty - Posted by JHyre in Ohio
Posted by JHyre in Ohio on July 04, 2003 at 13:05:35:
What works for me: I’m straight up. I tell why a given thing is good - and why it is bad. “Here’s how a C-Corp can help you…and here’s how it can cost you a ton of money”. Seems to work really well…ala we report, you decide.
Good point… - Posted by B.L.Renfrow
Posted by B.L.Renfrow on July 04, 2003 at 12:32:33:
Nobody likes being “sold”. I was in a Circuit City the other day, which was the only place within an hours’ drive where I could buy what I was looking for. I go into those types of stores knowing exactly what I want, and don’t need any interference from the pimply-faced sales drones.
When I got to the checkout, the guy started his pitch about extended warranties. I (politely) cut him off and said I wasn’t interested. But the SOB just wouldn’t give up. After telling him repeatedly I had no interest, he just kept on, in the best used-car-salesman persona, meanwhile making me stand there, instead of ringing up my purchase.
Getting more and more livid, I finally said, “Either you ring up this sale RIGHT NOW or I am walking out without buying and I will be on the phone to your corporate headquarters within the hour.”
He shut up and did so, glaring and rolling his eyes at me the whole time. I will not patronize that store again, because that experience is far from unusual there.
Like I said, no one wants to feel they’re being sold to. As you point out, if you package it so you present yourself as a problem-solver, on the same side as the homeowner, you stand a much better chance of success than if they view you as a salesman.
Re: Secret of Success with sellers and buyers. - Posted by Gene Texas
Posted by Gene Texas on July 04, 2003 at 12:19:56:
With your permission, what I’d like to do … etc.
Absolutely!!!.. - Posted by Hal Roark
Posted by Hal Roark on July 05, 2003 at 08:39:17:
I coulden’t possibly agree more.
GL, while I haven’t read the book, I can tell you, as a trained therapist, that when I sit belly to belly with the seller, my trained ears are listening for those hot button issues.
They NEVER center on the house. O, sure, the house is involved. The seller often thinks it’s about the house, but it’s NEVER about the house. It’s about the feelings around the house.
Anxiety. Depression. Fear. Feeling lost in the process, or overwhelmed. Scared. Greed.
Listen to find what the feeling is behind the motivation, and craft a solution around that, and, my God, it’s mannah from heaven!
Craig’s advice is absolutely on the mark. When you can talk regular with a seller, and get them to agree on an outcome of the deal that is where you wanted the deal to go anyway, and, the seller thinks it’s their idea to start with … that’s masterful negotiating.
This a.m. I’m going to see a deal and meet with a seller that one of my birddogs dug up. Here are the stats:
He owns a nice house in a desirable subdivision. First mortgage of 78k, second mortgage home equity line of 8.5k, house value of about 95k.
Partner screened him, and the condition of the house and neighborhood. All are very good. He’s had to give some money to help family, and he is going into the army in 6 weeks. He has great credit and it is important to him. He is not behind on his payments, but he will not pay the next one. He wants the house out of his life.
My instructions to partner were to feel him out about converting the heloc to a signature or personal loan and get removed from property. Then we would take over the first and resell house on lease option. He has agreed to do that with the heloc. Rent rates and mortgage rates are in line. A classic wrap deal.
When I meet with him and the partner today, 50% of the talk will be about him, his leaving, serving in the army, etc. His “hot button” is reassurance that the deal is done and his credit will be ok. We can solve that. We will give him that reassurance, and massage that hot button today, so that, at the act of closing, he signs the necessary docs and walks. We have agreed to pay all closing costs (about 1k) so he can just walk away.
On the back end, we may try to flip this fast or lease option for 3-5% down and a strike price of 105k or so.
Why is he doing this with us? I suspect because my birddog trained partner and I are very good at 1) screening the real deals over the phone (and screening out most of the bad ones), and 2) finding and massaging the hot buttons while in person so the act of sale becomes emotional relief and not emotional turmoil.
I’m gonna check out that book, too. I’m sure I will learn something.