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    Rob
    Changing Business Tactics - Or Not
    Entry posted August 7, 2009 by RobContributor, last edited January 19, 2012
    1026 Views, 3 Comments
    Title:
    Changing Business Tactics - Or Not
    Entry:

    So I've had my house on the market for the past 18 months and there's been practically zero interest from anyone in buying it.  I mean, very few people are even asking to come by and see it.  Meanwhile, two other homes in my neighborhood of the same model and in the same price range have both been sold recently.  So what gives?

    Over this entire time, the same Realtor has had the listing so we recently had a sit-down to talk about "strategy".  The two questions I posed to her were:

    1.  How did you sell during the boom years? and

    2.  How has your selling strategy changed since the recession?

    Her response was to look at me as if I just asked what the square root of 9,201 was.  Complete bewilderment.

    After a long pause, she responded roughly as follows:  "Well, I've put your house in the MLS, the listing now appears in multiple online listing sites (Realtor.com, Zillow, etc.), its been advertised in all the local papers and I've done three open houses."  To which I then asked, "Didn't you do all those things before the market crashed?"

    The point here is that she sells homes today exactly how she sold them in 2006.  Same strategies, same tactics.  Nothing has changed to reflect the fact that the entire market has changed. 

    This left me wondering if some  in the CRE due diligence field aren't making the same mistake.  As an information company, how is EDR changing its sales & marketing tactics given the market?  What are environmental consultants doing different today?  Are they trying to sell today the same way they did in 2006?

    There's no short answer to these questions because everyone's doing something different.  But one thing has been made perfectly clear to me these past 18 months.  The firms that sell today the same way they did in 2006 are not getting their desired results.  But the firms that have changed strategies and tactics, while not guaranteed success, are performing better as a group and have been less impacted by the market.

    So are your tactics the same today as they were three years ago?

    Comment

    • Mark Wallace
      posted August 11, 2009 by Mark WallaceElite Contributor

      Rob:

      First, good luck selling the house.  I just put mine on the market on Sunday.  I know the realtor so I feel pretty good about it, but it came down to using her or selling it myself.  I, or you, could easily pay ~$200 and have it listed on the MLS.  It is easy to get things listed on zillow and realtor.com.  My decison was based on time management and the fact that the realtor should have access to the tools, marketing power, and reach, to truly assist me in this process.

      You are right.   Change is hard - for every business.  Everyone wants to know that if they make changes, or try something new, it will work.   When I was selling social networking before it was mentioned in the media daily, I always asked clients these basic questions (very similar to yours).

      1) Are you successful or satisfied with your results now?   If yes, great.  If not then:

      2) What do have you to lose by trying something new?

      3) What do you stand to gain if it does work?    

      Seems simple, but it is often difficult for many of us.  I just wrote a blog that relates to your post on the topic of Innovation.   My firm belief is there is always a way - the challenging part is finding it.   

    • AmyH
      posted August 11, 2009 by AmyHSuper Contributor

      I wish both of you luck with the selling process. Having recently sold a home myself, I know how frustrating and nerve-wracking it can be.

      I couldn't agree more that firms need to constantly re-evaluate their sales strategies. One big (yet common) mistake firms make in a downturn is to cut marketing activities. This is precisely the time, however, to get your message out there. For one, fewer companies are doing the same, so your message is stronger (less diluted); also, you're seen as stable by your clients and prospects, so you emerge even better once things turn around. You don't have to spend a lot of money, either. You can accomplish a great deal via the Web, with white papers, newsletters, articles, posts, webcasts, etc.

      Firms (and people) need to think about their unique value. What do you do well? Where does your expertise lie? Think about your expertise and tout it. Otherwise, there's no reason to choose you over the next guy.

    • Chris_Shea
      posted August 29, 2009 by Chris_SheaMember

      Hi Rob:

      Great annectdote.  To answer your question, no our tactics are not the same as they were in 2006.  Every every business must adapt to changing times or perish.  The information age is forcing intermediaries to reconsider what their value proposition is.  Whether it is real estate, equities trading or human capital.  

      Why have similar homes been sold but not yours?  Your realtor has not effectively engaged the buyers.  There is obviously a market but your realtor has not accessed it on your behalf.  The good news about this market is that is that it will clear the playing field of poor performers.