Page 14 - Builder Brief October 2022

SALES & MARKETING
THE SECRET TO RECESSION-PROOF SALES
By Dr. Debora Trimpe, Prime Performance Strategies, LLC
After two years of a hot real estate market and highly motivated buyers, things are starting to normalize. Whether you're a builder, a vendor, or a real estate agent, you're likely feeling these changes. I describe what's going on in the 2022 market as normalizing and not necessarily
slowing because what we've seen over the last two years is abnormal. Today, buyers have concerns about buying again – just like they did in 2019! The concerns might be different, but the result is the same. In 2022, people are worried about inflation and interest rates and simply feel less pressure to buy.
It's easy to get worried and go into a frenzy when the market starts to cool off, but the fact is, no market ever stays stagnant! After over four decades in real estate, I can tell you I've seen every fluctuation you can think of, and one thing remains constant – there are always people who need houses!
Sure, people are no longer stuck at home, feeling all of the reasons why their houses aren't working for them. Most people are back at work, and kids are back in school. They aren't all crammed into their living space trying to figure out how to make things work. In other words, they're out of pain. Pain creates urgency. You look for a way out when you're in a painful situation. Without those pressing concerns, buying behavior is slowing down.
So in a market where people have more fears than they do pain points, our job is to identify what pain points our potential buyers DO have so we can help solve them. Then we have to convince them that our solution – whether it's a different layout for their home, a new air conditioner, or another home upgrade – is more important than their fears.
We understand what a potential customer's pain points are and what problems they want to solve by asking great questions – a bit of a lost art if you ask me!
Most builders, Realtors, or vendors ask who, what, when, where, why, and how questions, but these types of questions tend to yield surface-level or even one-word answers. You might ask, "Why are you looking for a different vendor?" To which a customer would likely reply, "Because my current one isn't working for me."
When we ask questions like, "What do you want in a home?" and get surface-level answers like, "We want a three bedroom/ two bath.", it gets uncomfortable quickly. People feel like you are grilling them, and you're not gaining any true insight, so you begin tell-selling – going on about what you think they
need without taking the time to get into their heads, homes, and lives.
You've heard that the customer is supposed to do most of the talking, but how often does this happen in your presentations? At the end of your interaction, you should know more about the prospect than they know about your product. You're not asking the right questions if it's the other way around.
Knowledge is power and leverage. The more you know about the person and their situation, the more likely you can collaborate to find a solution that they believe is an answer to their problem and that overcomes their fears.
To get to the depth of people's pain points and problems, I like to use a method called Socratic Questioning. These questions sound more like declarative statements. A few examples would be:
• Tell me a little bit about your current home...
• Explain some of the reasons you're looking for a new vendor...
• Help me understand the different things you want in a neighborhood....
These sorts of questions create space for the customer to get to the heart of what they are struggling with and what they want or need. They allow the buyer to feel like they're leading the conversation, although WE are actually the ones controlling the direction.
You might ask a question like, "Describe an evening at home ..." Suddenly, instead of just finding out that they want a three bedroom/two bath with a family room, you'll find out that they love cooking dinner and being able to see their kids play at the same time.
The thing that can get confusing here is that the solution the buyer is telling you they're looking for might not solve their problem! They might think they want four bedrooms when three bedrooms and a study are ideal. It's your job to guide the conversation and find a solution that moves your customer past their fears.
This all begins with your ability to find out information, genuinely get to know your customer, and ultimately, do something different than everyone else they're talking to.
The bottom line is, as long as they're still looking, you still have a pain point or problem to solve. With the right questions, you move into a position to solve the problem for them in a way that's better than most people in your industry, because you'll have an in-depth understanding of who they are and what they want and need.
14 OCTOBER 2022 | GREATER SAN ANTONIO BUILDERS ASSOCIATION