March 22, 2015 Blog No Comments

Cash flow is sitting right under your nose. What are you doing about it? How many listings does your company have right now?

The money is sitting in the second-tier listings. Do this point by point and you can get money rolling in fast!

  1. Call a special meeting in the training room. Mandatory.
  2. Announce that there will be a pricing blitz to get sales moving again. Go through every listing one by one. Decide as a group (do not ask the listing agent their opinion!) which of your current listings are FSN - that is, "For Sale Now". Then go through the rest of them and decide what the price should be for it to sell. Again, do not involve the listing agent - they buy into all sorts of stories on this. Decide what the price should be, based on the fact that any listing that wants to sell must be priced within 5%, and preferably 3%, of the estimated market value. This is where your cash flow is sitting right now!
  3. Write up in red the new price required for each listing. If you want to be tough, either the agent agrees they can get it to that or another agent takes the listing. (Please note: this is not a giveaway figure but the realistic figure required to give this house a chance.)
  4. Announce a new training session two hours long for a later date (like the next day). Mandatory again!
  5. Take them through the System 52 session The Midas Touch - Getting Prices Real twice. (Download session materials below.) Do the role plays in there. Take your time and actually do the session. Get them to role play it based on an actual price reduction they need to get on the board.
  6. Set a time for these reduction meetings. You, as manager, should try and attend as many as you can. There is no better use of your time than this. The sooner you start on them, the sooner you have more saleable stock - it’s that simple.
  7. At the start of your next training session, play the System 52 session 15 Rules for Thriving in Changing Markets (download session materials below). Get them to comment on what is in there and make decisions about what you need to be doing as part of the "Rule 14: Take massive action" exercise.
  8. One week later (no more), be back at the white board asking, simply, "Price drop, yes or no?". Again, if someone is decking around with this, you could change the listing agent. It is like when someone goes on holiday and another agent looks after their listings. The prices come down because the caretaker agent does not buy into the stories about what has been done so far and so on.

 

Written by Peter Gilchrist