Lessons in selling from real estate agents

By Gordon Hecht, YSN Contributor 

We of the furniture, appliance, and mattress retail world think of ourselves as selling big-ticket merchandise. Thousand-dollar orders are mundane and $5,000 is not uncommon.  

Depending on your merchandise selection, you may see orders of $15,000-$20,000 now and then.  

You and your frontline sales team may enjoy closing those five-figure tickets. But they pale in comparison to the sales teams in the real estate biz. Virtually no sales under six figures. In fact, the average purchase price of a home in the U.S. is $385,000. It’s over $800,000 in California.  

Even with recent changes to the law, agents’ commissions average 6%, meaning a payoff of about $25,000 on average and close to $50,000 in sunny Cal.  

With so much dough riding on each sale, those real estate agents need to be on top of their game to survive and achieve success.  

House Hunters 

This came to light recently, as me and my everlovin’ bride are considering a change in residence. As with almost any purchase, the path to buying started online. There are many websites showing homes for sale. A person can type in a city, town or even a street name to see what’s available, and find selling prices of recently closed deals.  

Most of the posted homes have 20 to 30 photos. You know, the kitchen, bathrooms, bedrooms, backyard and more. Some have 360-degree images. The idea is to give a prospect an idea of what to expect.  

When you have 10 minutes, check out some listings online. Many homes have professionally-shot photos. The homes look neat and orderly. However, many more listings use amateur photos. These are barely above Kodak Instamatic quality. Someone must have shot them on a Blackberry Curve. The photos are dark with poor angles. 

What’s worse is many kitchen and bathroom images show rooms disorganized with clutter and junk everywhere. I’ve seen living rooms with pet beds and cat trees. An immediate turnoff to someone with allergies. Or you may see harvest gold appliances and shag carpeting (a tipoff that there’s been no updates since the Disco Era). 

You’d have to imagine that a tour through that sort of house, if it ever occurred, would win first prize for sales prevention.  

This has to be your year of putting your best foot forward. In-store, online and in advertising media. That means clean and uncluttered. Modern and up-to-date.  

House in Order 

The best place to start is at the beginning. Your front door. Simply remove all stickers and signs from the window. All you need is your store hours and one decal with the credit cards or financing you offer. After that, you can add in a few 2025 model window posters. 

Next is the store floor. Just because manufacturers and suppliers send POP your way, you don’t need to use it all. In-store promo tags on a few models will do. Not every bed or dining table needs a tent card. And, if you still have Black Friday and New Years tags on, it’s time to update! 

Then tackle your website. If your pop-ups look like a July 4th fireworks display, it’s a turn-off for shoppers. And, like those real estate websites, if you insist on posting “Call for Price,” you can plan on the phone never ringing.  

Here are some other winning tips from the real estate world: 

Creditworthy? 

Most agents won’t show a prospect any homes without credit pre-approval. It’s a fool’s errand to write an offer and then find out it’s beyond the buyer’s ability to pay. It’s a little different in your shop, but not by much. A good, early, qualifying question to ask the shopper is whether they normally pay cash, credit or want to use your finance offer. If it’s the last, get them to do the application first. Their line of credit will affect their purchase amount.  

Make Hay 

Retail sales associates, take note of this. Your store owner provides you with a building, website, phone and array of display merchandise and inventory. All at no charge to you. Real estate agents pay for everything! They shell out big bucks for advertising, licensing, signage, a vehicle, a laptop, photos and more. 

Essentially, they pay upfront for every buyer and seller they talk to. Based on that, it’s imperative for them to convert every conversation into revenue. They gotta close darned near 100% to earn a living. Think about that the next time you are tempted to burn an “up” or fail to ask for the sale.  

Real estate selling follows Pareto’s Law. It’s that 80/20 thing. Eighty percent of the sales go to the top 20% of agents. The really successful agents work to build their clientele as they build their sales. Personally, I used a single agent for three transactions in a five-year period. And recommended that agent to multiple friends.  

Repeat Business 

In our own retail world it costs six times more to attract a new shopper than retain a current one. Whatever you sell, your merchandise can be placed in several rooms. Make it a rule to keep in contact with your current shoppers. When you make a sale, ask them what room they are working on next. Mattress shoppers have three or four bedrooms. People buying a fridge have laundry needs. Shouldn’t they get it all from you? 

Suit Their Needs 

Before an agent will list a home, they require the owner to fill out a disclaimer. It’s a written statement listing any problems the home may have. Electrical issues, roof leaks, structural problems, insects or more. Even if the owner fixed the issues, they need to document dates and solutions. 

We sell new merchandise, thus there are few product problems. But there is a need to outline fitness for purpose. In the mattress world, some beds are great for young kids or occasional guest use. They are simply not designed for 250-pound poppa and 150-pound momma to sleep on every night. And a cheap metal bedframe without a center support is a death knell for a queen or larger mattress. 

Likewise, that space-saving stackable washer/dryer may look cool and is probably perfect for single people or couples. Or time shares. But if your shopper has their four kids in tow, it may not be up to the task. If it’s not durability, it’s capacity.  

As always, it’s buyers’ choice. But you’ll build a better clientele by providing satisfaction compared to low price. 

Me and the everlovin’ are a lot like the shoppers in your market. We are planning a real estate tour soon. We’ll start off with a list of 10 or so dwellings and whittle them down based on information in the listing.  

Those listings with dark, cluttered images and incomplete features will be the first to go. 

Gordon Hechtis a consultant to the home furnishings trade with over four decades in retail and manufacturing and more than 500 industry newsletters and articles under his belt. His award-winning experience includes tenured time with Ashley Furniture Industries and Serta Simmons Bedding, with progressive responsibility for large and small retailers. Contact him atgordon.hecht@aol.com. 

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