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Week of April 7, 2003

Front Page

President's Message

* Housing Have-Nots Deserve a Boost From Congress

Regulation

* NAHB Members Urged to Write Letters on Isolated Wetlands

Housing and Economics

* IMF Housing Price Study of Little Relevance to U.S. Market
* Spotlight on: Denver

Housing Politics

* New State Laws Provide Legal Relief for Idaho Builders

Green Building

* Leaders in Green Building Movement Recognized
* Green Home Building Moving Into Mainstream

Multifamily

* Tax Credit Projects Require Stick-to-it-iveness
* Fair Housing Act Workshops Free to Builders
* Pillars Awards Recognize Excellence

Seniors Housing

* Your Buyers Are Never Too Young for Universal Design

Business Management

* Choose an Accounting Method That Fits Your Business

Housing Finance

* Creation of Secondary AD&C Market Discussed at Treasury
* U.S. Home Finance System Most Successful in the World
* NAHB President Named Secretary of Housing Council

Member Dividends

* Association Receives Funds to Hire Biological Consultant

Sales & Marketing

* Ask a MIRM – About Too Much Sales Traffic

Labor

* CRAFT Training Turns Student’s Life Around

Building Products

* Kitchen Sinks Deliver Near-Boiling Water

Building News Coast To Coast

Association News & Events

* April Is New Homes Month!
* Obituary: Southwest Building Industry Leader Mark Tomlinson
* Three Key Events Right Around the Corner
* Calendar of Events

NBN Back Issues

 

Ask a MIRM – About Too Much Sales Traffic

Many builders and salespeople would love to be in the shoes of the person who complains he has so much traffic at his new community that he doesn’t know what to do. But too much traffic is a legitimate concern, because there is a good probability that potential sales are being lost, and it could indicate that too much is being spent on advertising or that sales prices are too low.

One thing is certain: If your community and homes are not being properly shown to all of your qualified visitors by professional sales staff, then you are losing sales.

First, examine whether your sales facility is adequately staffed. Single-person offices are inherently inefficient, while packing an office with excessive sales staff can crowd the facility and reduce the income potential of those who are working there.


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Consider adding one sales person. If that isn’t possible, at least add a hostess or receptionist. At the very least, your visitors should be welcomed by a living human being who can get their name, address and telephone number so that you can contact them and schedule a return visit during a less hectic time when they can be given the attention they deserve.

When you add personnel, you may need to adjust compensation to ensure keeping the good people on your sales staff. But any additional costs should be offset by increased sales. You may need to use your selling skills to convince management that adding personnel is in their best interest. If management does not agree, you should consider paying the person out of your own pocket. This may sound like heresy, but it is a solution that has worked for general real estate brokers around the country.

Examining your sales goal and conversion ratios will provide a good indication of how much traffic you need and how much traffic you can accommodate. When traffic is too heavy, your conversion ratios will fall and you may be unfairly judged on what appears to be inadequate performance.

If it appears that your company should be reducing its advertising expenditures, that recommendation could make you a hero in the eyes of management because it will save money.

Too much traffic is also an indication that the time is ripe for examining your pricing. This could be an opportunity you don’t want to miss. If you decide on price increases, implement them cautiously in small and regular increments. The market will tell you when the price is right; watch your sales and traffic.

Daniel Levitan, MIRM, is president of Levitan & Associates, a Florida-based firm providing marketing and strategic consulting to builders, developers and lenders across the country. He is a past president and multi-term trustee of the Institute of Residential Marketing. He has been a trustee of the National Council on Seniors Housing and has won IRM’s Bill Molster, John P. Hall and Excellence in Education awards. He can be reached by e-mail or phone him at 954-473-4244.


“Ask a MIRM” is a regular feature in Sales & Marketing Ideas magazine.

For additional cutting-edge sales and marketing information, subscribe to NAHB’s Sales and Marketing Ideas magazine Call 800-368-5242 x8192 or click here to subscribe or order a copy. Click here to learn about membership benefits of the Nationals Sales and Marketing Council and the Institute of Residential Marketing.

BuilderBooks.com offers a variety of sales and marketing publications online. To view or purchase these publications, click here.

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