Is the Party Over?

(Isn’t this a rhetorical (Isn’t this a rhetorical question?)question?)

But…must this be the But…must this be the curtain call? Is there a curtain call? Is there a

way to avoid exiting the way to avoid exiting the stage?stage?

Let’s try to find some blue Let’s try to find some blue sky!sky!

Just how did we get into this Just how did we get into this mess in the first place?mess in the first place?

• Believing that a good market would last foreverBelieving that a good market would last forever

• Forgetting that it’s still location, location, Forgetting that it’s still location, location, locationlocation

• Failure to differentiate our product from the Failure to differentiate our product from the competitioncompetition

• Not realizing the changes that were occurring in Not realizing the changes that were occurring in buyer media habits: you don’t have a sales buyer media habits: you don’t have a sales problem, you have a traffic problem!problem, you have a traffic problem!

• Not realizing we’ve become a 1:1 society Not realizing we’ve become a 1:1 society

• Not realizing that we’re now in an experience Not realizing that we’re now in an experience economyeconomy

Now how do we get out of this Now how do we get out of this mess?mess?

• A good market doesn’t last foreverA good market doesn’t last forever– New competition (including resales) has New competition (including resales) has

“re-priced” your product for you“re-priced” your product for you– Your first loss is your best loss!Your first loss is your best loss!– Try non-price incentives first (closing costs; Try non-price incentives first (closing costs;

financing assistance; allowances for financing assistance; allowances for uninstalled options). Discount prices as uninstalled options). Discount prices as your last resort – but if you have to – DO IT!your last resort – but if you have to – DO IT!

– Differentiate the deal between your Differentiate the deal between your standing inventory and a “new build”standing inventory and a “new build”

Now how do we get out of this Now how do we get out of this mess?mess?

• It’s location, location, location…It’s location, location, location…– Marginal locations always suffer first in a Marginal locations always suffer first in a

down market. If you’re buying now, you down market. If you’re buying now, you can’t afford the wrong location. If you’re can’t afford the wrong location. If you’re already in one…see the previous slide!already in one…see the previous slide!

– The value of place-makingThe value of place-making– If you can’t lead, follow (just follow the If you can’t lead, follow (just follow the

right people)right people)

Now how do we get out of this Now how do we get out of this mess?mess?

• Failure to differentiate yourself from Failure to differentiate yourself from the competitionthe competition– Commoditization can Commoditization can only only be won by be won by

lowest price!lowest price!– Design rules! What is your “plus one”? Design rules! What is your “plus one”?

Are you designing for women?Are you designing for women?– Train your salespeople to Train your salespeople to understand understand

your point of differentiationyour point of differentiation

www.herhome.com

Now how do we get out of this Now how do we get out of this mess?mess?• Not recognizing changes that were occurring in Not recognizing changes that were occurring in

buyer media habits…buyer media habits…– 50% of my advertising dollar is being wasted…I 50% of my advertising dollar is being wasted…I

just don’t know which 50%!!just don’t know which 50%!!– Traditional media is often underperformingTraditional media is often underperforming– Don’t let the real estate company Don’t let the real estate company pay forpay for your your

advertising!advertising!– Professional photography more than pays for Professional photography more than pays for

itself!itself!– It’s all about the Internet (or so say 80%It’s all about the Internet (or so say 80%++ of home of home

buyers!)buyers!)– Is the future podcasting? .tv sites?Is the future podcasting? .tv sites?

Now how do we get out of this Now how do we get out of this mess?mess?

• Not realizing the importance of 1:1 Not realizing the importance of 1:1 marketing…marketing…– You can survive, and especially thrive, You can survive, and especially thrive,

without a good data base!without a good data base!– Understanding buying motivations and Understanding buying motivations and

then tailoring your follow-up to those then tailoring your follow-up to those motivatorsmotivators

– Direct mail can now be personalized!!Direct mail can now be personalized!!– How do your processes add value to the How do your processes add value to the

customer’s customer’s experience?experience?

Now how do we get out of this Now how do we get out of this mess?mess?

• Not recognizing that we’re now in an Not recognizing that we’re now in an experience economy…experience economy…– To paraphrase Bill Clinton, “It’s the To paraphrase Bill Clinton, “It’s the

experience, experience, stupid!”stupid!”– We’re being benchmarked against We’re being benchmarked against

Nordstrom, Starbucks and Home Depot! Nordstrom, Starbucks and Home Depot! What is the customer’s What is the customer’s experienceexperience like in like in visiting your sales center?visiting your sales center?

– The value of PR (event marketing) versus The value of PR (event marketing) versus advertising (grand openings, broker advertising (grand openings, broker events, sponsorships)events, sponsorships)

Don’t just hope and pray that Don’t just hope and pray that the cycle “turns up” soon…the cycle “turns up” soon…

……make something happen today!make something happen today!