By Jeff Menzel, Regional Vice President in the Northwest - New Home Star
The cliche phrase "knowledge is power" is often thrown around in the business world. However, for those of us in the new home sales industry, there is something very appropriate and accurate about these words. Take a moment to think about the basics of the Critical Path of selling. We discover to gain knowledge about our buyers. We demonstrate to show and sell our knowledge of our product. We use a trial close to gain insight (knowledge) into our buyer's engagement. Finally, we gain a buyer's commitment and then demonstrate our knowledge of purchase agreement documents.
For sales professionals, the more you know, the more you will sell. It is a must to have a high level of knowledge on a vast array of new home sales elements; the importance of this is something that we are trained on when we first break into the industry. But where does this knowledge come from? Beyond the Critical Path, how do we know what we should learn? And most importantly, how do we use this knowledge to sell more homes?
Too often, sales professionals "wing it." They see a customer walking in, they put their game face on, and they go sell. That method doesn't sound bad on the surface, but how much more effective would they be if they had a strategic approach towards that customer? This is where a well-developed, logical and strategic approach to selling pays off!
I believe there are four primary areas in which knowledge will help you develop a strategic plan of attack, ultimately allowing you to sell more homes. They include:
1. Your product.
2. Your competition.
3. Your differences.
4. Your buyer.
Let's take a quick look at each.
Your Product: Study your community and know its features to a tee. As you investigate each element (such as floor plan, amenities, surrounding area, etc.), you are preparing yourself to be a wealth of knowledge for your buyer. Gaining a detailed understanding of offered features, homesite advantages, community layout, pricing, onsite and offsite amenities, and your builder's history makes you a resource that goes above and beyond selling a floor plan. Instead, you're selling a community and a lifestyle. Be armed with knowledge in order to be effective on the sales floor.
Your Competition: Next, study the competition in the same light. Look at the same categories that you broke down for your own community in order to uncover advantages and disadvantages of the competition. Take it a step further and do a feature comparison against your main competitors. How do you stack up? In what areas do you have a clear advantage? The knowledge that you have gained through this exercise will enable you to constructively and appropriately tackle local competition.
Your Differences: What makes your community or your builder unique? Now that you've studied both your community and your competition, utilize this data to help formulate the reasons that your product cannot be found anywhere else. Do you have several 2-story floor plans? Are the schools in the area unbeatable? Know what your buyer wants and needs and then use the things that make you different from your competition as a selling point. You have now taken your knowledge and turned it into a selling platform.
Your Buyer: Who is your buyer? How well have you gotten to know them? Have you gone beyond basic discovery questions to really understand their hot buttons and what will motivate them to buy? Have you analyzed everything you've learned about each and every buyer to ensure that you develop a selling strategy that is customized for them? You are now ready to deliver a unique and personalized buying experience for [insert buyer here]! This will set you apart from your competition.
Instead of being reactionary, let's be proactive! Use the knowledge you have gained to develop a strategic selling plan, practice the delivery of your message, and then execute. The hard work of studying your product, your competition, and your buyer will pay off and enable you to sell more homes. Knowledge is truly power!
Jeff Menzel is a home building executive and energetic sales leader with over 15 years of experience in sales management. He is currently New Home Star's Northwest Regional Vice President of Sales and manages divisions in Oregon, Washington and Idaho.
*This content is inspired by New Home Star's unique training tools, including the Asset 180. For more information, click here.
