What does real estate have to do with a twenty dollars dinner? Let me tell you a story.
In my hometown a new restaurant opened up. The opening was eagerly anticipated in the community because this management group had sister restaurants in a neighboring locality and each one had an enviable reputation. The opening day came and all the appropriate things were done. There was a Grand Opening celebration with the town's elected officials present, notices were in the local papers and it was televised by the local media stations. The restaurant was off and running and initially it was difficult to get a seat. However, a few months down the road the restaurant began to flounder. The word on the street was bad! It was too expensive! The service was terrible. The food was inconsistent. These were the comments spreading throughout the community.
The owners were faced with a choice. Keep doing business as they initially began and eventually be closed for dinner OR develop a new business model that would succeed. They tried several different dining concepts with varying degrees of success. Eventually, they tried offering a four course meal for twenty dollars. They did this for a month. It was so well received by the community that the management extended it into the next month. At the end of the second month this new concept had increased business to the point where it was adopted as the new format for this restaurant.
There was now a different buzz in town. What a great deal for only twenty dollars! The service is efficient and well trained. The food was fantastic. By trying different things, re-training staff and acknowledging when something was not working, this management group found a new model for success. It was different from how they began and different from their other properties, BUT the new model worked them in that location.
How does this related to real estate? If you believe that in the current market, methods which used to work may no longer be effective, if you also believe that real estate is local and driven by community needs, then you should be able to apply what this restaurant did to your business.
Review what it is that you are currently doing. Is it effective? Is there a better way? Do you have to re-train? What does your community want? What will your community need? If you take the time to ask and answer these questions you may find a better way to do business. If you keep doing what used to work, you may eventually be closed for dinner.
Comments(5)