Yes, sales are harder to come by these days but there are ways to improve your odds at a lower cost.  Did you know that out of 100 new leads, your sales team will typically have a live conversation with less than 40 of them?  We can fix that - see the slide show below.

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If you’ve been on the front lines during a typical fractional real estate sales process you will concur that there are any number of objections that are consistently fired at the sales team.  Without going through each and every concern, we can safely say they all have one underlying meaning:  “I am uncomfortable with this decision”.  Usually buyer discomfort is related to a lack of understanding and experience with the product which is another way of saying “I am worried about the risk”.  Heck, nervous buyers will find a way to communicate this trepidation through the thread count of the bed sheets if they have to.  So why does dropping the price remain the first knee-jerk reaction to closing prospects?

The answer is this:  price incentives are often a good urgency tool, and creating urgency is commonly confused with eliminating anxiety.   More often than not, if a fractional ownership prospect isn’t pulling the trigger it is not due to price, it’s something deeper than that - perceived risk.  Tackle the risk and price isn’t an issue.

So how do we provide comfort with perceived risk?  Look at developer buyback options; look at methods to provide customers the option to purchase “risk insurance” at closing and consider installing bonus interest opportunities for buying early.  These tools transfer some additional risk to the developer of course, but that’s the name of the game.  Show me a developer who isn’t comfortable taking risk and I’ll show you a future Starbucks barista.  Assuming that the product has been created properly with the essentials in place for a successful Private Residence Club, virtually eliminating buyer risk will drive stronger sales.  A project that sells is one that eliminates risk to the developer as well.

Now for the secret sauce:  use risk mitigation measures to effectively create urgency.  Let’s not forget that if you (the seller) are going to give something away (a buyback plan for example), you must get something in return; this is basic Integrity Selling and the buyer will appreciate it and respond to it.  Pierce Group has a buyback plan that can be used specifically for this instance.  Instead of offering a price discount, offer incentives centered on the buyback; but do it in return for signing the dotted line within a short period of time.  Set aside all of the money that you would have given away in discounts and use it as a personal insurance policy for your buyback plan.

Disclaimer: Don’t bring up risk!  Only use this strategy when it is an issue with the buyer. At this point in the process the sales executive should already have a strong understanding of the buyer’s objection and a good idea of the direction to take if there is hesitation in moving forward.

Create the right product, virtually eliminate the risk and make it easy to buy - As Yoda once said, “urgency these are not, for they create it”… or something like that.

For more on risk mitigation and the Clearview Sales Process^TM visit PierceGroupLLC.com

Foresight Costs Less Than Hindsight^SM