Builder - December 2008 - (Page 41) SALES STRATEGIES TIPS AND TACTICS FOR SALES SUCCESS ADVICE ■ EDITED BY RICH BINSACCA SALES I Part of a comprehensive analysis of a plan’s size, features, value, benefits, and price is fi nding what Trellis calls a “fatal flaw” in your current plans and fi xing it—and then renaming the plan. He also advocates incorporating special spaces (think wine cellars and craft rooms) that few, if any, of your competitors offer at the same price point, and providing multiple storage options for a buying public that increasIndustry guru Al Trellis offers a few tips for weathering ingly has more stuff to bring to a new house. DETERMINE FLASH VALUE. Trellis advocates takhousing’s current market conditions. ing a hard look at new-home features with hight’s been well over a year since the housing bubble burst, est (to lowest) perceived value and market distinction and and most builders are still struggling to adjust. “People forget determining which ones have the biggest bang for the buck—their that it’s a multifaceted issue,” says Al Trellis of Home Builders flash value. Network (www.hbnnet.com), itself a multifaceted industry That analysis starts with knowing your base costs to build a consultancy in Mount Airy, Md. “They want a quick answer or standard house and honing that down as far as possible. It’s then up solution, and it just doesn’t exist.” to you to determine the cost–price ratio of each hot button item. Trellis tours the country speaking, advising, and (hopefully) The higher the ratio of the price you can charge divided by what it energizing builders to respond more aggressively to adverse mar- costs to provide, the better its flash value. Then, says Trellis, work ket conditions, reduce obvious risks within their operation, alter with your suppliers and subs to gain discounts for volume purchases their sales compensation packages, and look for ways to balance to help reduce costs even further—which may allow you to add costs with the highest-value designs and products. “Doing noth- another item to the mix. ACHIEVE SUSTAINED VALUE. Eventually, special spaces and flashing means you aren’t accomplishing anything,” he says. Consider (see page 42) valued hot buttons are bound to be copied the following summary of his advice: VARY COMPENSATION. Trellis advocates a bolder approach for in-house associates by offering a base salary, such as $30,000 a year, with a variable commission structure and incentives based on exceeding sales targets. “They’ll make more money on the last house than on the first house, encouraging them to sell more effectively,” he says. Another strategy is to offer a higher salary with no commission until the sales agent reaches 80 percent of his or her sales target and only provide a commission on the last 20 percent of sales. When they go over 100 percent of their target, says Trellis, reward them with an increasingly higher commission per sale. ALTER YOUR PRODUCT. Trellis is a big fan of making smart design alterations to suit a more discerning market of buyers, which will, in turn, provide a fresh look, invigorate the sales staff, and fend off criticism from past purchasers. “Previous buyers can’t complain when you cut the price of a new home because it’s not the same house you sold them,” he says. Sharpen Your Strategies W W W.BUILDERONLINE.COM de c e m ber 2 0 08 BUILDER ■ 41 http://www.hbnnet.com http://WWW.BUILDERONLINE.COM
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