Stand Out During A Slowdown

By Matthew S. Gosselin

“Like great stock investments, the best and most lasting client relationships are not made during boom times-they're made during difficult times.” (10 Ways to Profit During a Slowdown by Felice Wagner)

“It is ironic that during those times when capturing a share of the market is most difficult, companies are inclined to reduce their marketing efforts. But it is a mistake because the best way to hold onto your share of the market is to be visually identifiable as a successful company that produces superior products and/or services.” (Real Estate Weekly Marilyn Miller)

At one time or another all industries face a period when business slows.  Real estate is no exception.  Historically, many companies will look to their marketing budgets during these times to save money.  This is a crucial mistake as it allows competitors to catch up to leaders of the industries.

For instance, after 9/11 the airline industry saw substantial decreases in travelers promoting many airlines to cut funding to various marketing programs.  Southwest and JetBlue stepped up marketing efforts and were the first to see an increase in business during this time. 

When IBM sees an economic slowdown, IBM Chairman Louis V. Gerstner charges ahead too—he continues to increase his company’s advertising budget and grab market share from competitors.

Although these are large company examples, the results are the in the world of the individual real estate agent. Companies that cut marketing fade from public spotlight while the ones that increase their marketing move to the front.  By the end of the current slowdown it is estimated that companies will lose 10-15% of their agents.  Very often these are agents that spend 0-3% of their gross commissions on marketing and advertising. (National Association of Realtors) This is clearly not enough to make an impression in any market. 

The following list is 8 ways to keep your business in check during a market slowdown.

1.      The Price is Right – You should have heard this from your management at least ten times over the past year.  Make sure the homes you are listing are priced correctly.  As the market softens inventory will increase and your home will remain on the market longer.  Pricing a home intelligently will mean a faster sale and at a price that makes everyone happy.

2.      Get Your Name Out – When was the last time you sent out a personal piece about yourself?  How many of your neighbors know you are in real estate?  Send direct mail postcards to areas in which you have never done business.  Remember that most of your competitors are decreasing their marketing efforts opening the door to you to begin new client relationships.

3.      Don’t Over Promise – A common mistake by real estate agents is trying to ‘one-up’ the competition.  “I can sell your house in two weeks” they’ll say or “I can sell your home for more money than they [the competition] are selling it.”  These types of quotes are all but guaranteed to lose business.  They will also generate negative word-of-mouth.  The most important thing you can be to a homeowner is real. 

4.      Communicate Frequently and More Often Then You Have Been – There is one big secret during an economic slowdown that will set you ahead of the crowd “It’s constant contact with the buyer” says Phyllis Pezenik, Director of Sales at DJK Residential in New York City. With so much about real estate in the newspapers, on the Internet and on the news, consumers have more questions about the market and need to know who to turn to.  Picking up the phone and casually calling your past/present clients is a great way to keep a relationship solid. “In a down economy, [good marketers] adjust their marketing by speaking more to customers than prospects and by working like demons to gain referral and follow-up business.” Jay Conrad Levinson

5.      Become a Resource – During a market slowdown the average consumer has more questions.  They are being bombarded from the TV, newspapers and magazines about the housing market and it scares them.  Keep up to date on housing statistics for your market and in hot spots around the country.  Speaking knowledgeably about these changes will give a consumer comfort and give you credibility.

6.      Advertise Wisely  – During a slowdown you will find many of your competitors pulling back on their advertising space which will open up more space for you.  Now is the time to negotiate with your newspaper, magazine and television outlets for better rates.  Start with “I have been contemplating pulling my ads to save money during this market slowdown.  If I could get a contract for a better rate I would be willing to keep my ads in.” 9 out of 10 times the media does not want to lose your business and will meet or exceed your requests.

7.      Friends in High Places - Ask your current clients to recommend you and offer an incentive to do so. This is simple and effective but most often overlooked.  The transaction doesn’t end after the checks have been exchanged.  Send a genuine Hallmark thank you card with extra business cards so they are able to pass them along to their friends.  Everyone loves to recommend an agent they had a great experience with.

8.      Go Guerrilla – A new form of marketing has swept the advertising world over the past two years.  It is called Guerrilla Marketing.  It involves unique tactics that are usually very inexpensive and uses word-of-mouth as its channel.  It is the realization that your prospects are always being marketed to and finds other ways to get your business on their brain.  Some ideas to market yourself using Guerilla marketing include sending out a press release to invite the media to spend the day with a real estate agent and volunteering for a cause and inviting your client list through email and direct mail to join you.

Slowdowns are the times when market leaders are born. Understanding the business and your clients will give you leverage in your marketplace.

Matthew S. Gosselin is the regional account manager for Xpressdocs. His book, “My Blue Goose, Exploiting The Wow Factor In Real Estate Marketing is due out in October, 2007.  Matt can be reached at mg@mybluegoose.com   or MyBlueGoose.com