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Seeds For Thought
Serving Your Customers RightWho has the better shot at success? "Listen, anyone except a complete idiot knows that I have the best ice cream in town. Frankly, if you don't know good ice cream, I don't care about your business. Eat somebody else's inferior product and don't get too sick." Or, "I think that we do offer a superior ice cream. The favorite part of my job is seeing all the smiling families. Here, try a free taste." If a customer has a choice, which business is he or she more apt to patronize on a regular basis? Always think in terms of what would be best for your customers and what alternatives your customers have to dealing with you and your business will constantly evolve for the better. You're the customer. Take your pick. Of course, as a Catholic Action Principles Champion, you already know this! Doran's Window Washing
Joe Doran and his two men pull up to a house to wash the windows and clean the gutters. The three are dressed in blue chino pants and lighter blue polo shirts with the "Doran's Window Washing" company name embroidered on the shirts. Their van is clean and lettered with the name and phone number of the business. While they are working, they set up a sandwich board sign on the front lawn of the house advertising themselves and their services. They work efficiently and quietly. They always double check to make sure that they haven't left any debris.After the job, Joe's two men take about ten minutes to walk down the street and to put doorknob hangers on each house to advertise their services. The advertising explains that complete customer satisfaction is their number one priority and that their work is fully guaranteed and insured. The door hanger also directs customers to Joe's website where they will find testimonials, certificates of insurance and a list of environmentally friendly products to be used. The website also mentions that Joe is a member of St. Mark's Parish Knights of Columbus and that Joe has a special personal devotion to Saint Adelemus, patron saint of butlers, servants and house cleaners. Joe takes this time to review the window-cleaning job with the homeowner. He makes sure that the homeowner is satisfied. He also asks the homeowner if he can schedule the home for another window cleaning in three months. Further, he asks if the homeowner can refer him to any other potential residential customers. Then he asks homeowners if they know who cleans the office or store windows where they or their spouses work. Joe is starting to develop a large commercial as well as residential window cleaning clientele. With a straightforward "customer first" attitude, a clean professional look, a few ladders, some newspapers and spray bottles of ammonia and water, Joe is on his way to building a prosperous business. 
Sinclair's Window CleaningAs he and the boys stumble out of the van, Sin is heard to threaten, "Let's get this job done fast. I want to be paid and out of here in an hour. And, I don't want you guys horsing around on the ladders. Remember, my insurance was cancelled last week." However, the music is so loud, and with both of Sin's assistants wearing headphones, it is doubtful they heard anything from Sin. Sin and the boys are dressed in their company uniform of ragged cutoffs and no shirts. As Sin and the boys finish a window, they drop the sheet of newspaper they have used. Their intention is to pick up the used newspapers at the end of the job but, of course, half the newspapers blow around the neighborhood. If any further notice was needed to the auditory assault, the blowing trash announces the young mens' presence in the neighborhood. After the allotted one hour, Sin is ready to leave. One of the crew points out that they haven't washed the second floor windows on the rear of the house. Sin waves off that comment saying that those windows look fine. Sin is not happy with the homeowner who is trying to pay with a check rather than cash. At that moment, the police pull up, having been called by a Catholic neighbor who was morally opposed to the lyrics of the music being blasted from Sin's van. Sin disgustedly grabs the check. He "Yeah, yeahs" the cop and swears to his boys for all to hear that he'll never accept another job in that "####" neighborhood again. What do you have to do in this world to make a day's pay? Oh, well, a day's work done. What difference does it make? Sin and the boys don't intend to be washing windows for much longer anyway. When you're starting your business, you can't afford to offend a single person. The average person knows 250 other people. You want every customer interaction to be a positive experience. Your objective is to make every satisfied customer an ambassador singing your praises. In the long run, your customer first attitude will propel you to success. When you study the best in your business, you will see this level of professionalism. 
Time ManagementMost people have plenty of time to get more done because the average person only works fifty percent of the time that they are at work. This is not break through news. As you think about how you can be more productive, you are observing others. It isn't difficult at all to find examples of fellow co-workers who are daydreaming, gossiping, going to the rest room, having a snack, surfing the Net on personal matters, etc. Measuring yourself against average, motivated ambitious individuals can see lots of opportunities to excel. Stop. Successful entrepreneurship is a thinking person's art. You need time to stop and think and pray to your patron saints and guardian angels. Reflect. What are you doing right? Where is your focus? What are you doing wrong that needs correction? What tough decisions do you need to make? You need to find life's balance which takes constant adjustment. Obviously, working hard to the point of burn out is counter-productive. Yes, you must have time to relax with family and friends Stop, reflect and pray. You need the complete package. You need energy to greet your customers with enthusiasm day after day. You need to eat healthy. You need to exercise. You need a good night's sleep. Stop, reflect and pray. Following the Catholic Action Principles™, you can make your financial, personal and spiritual life better and better. 
Andy, As BrokerWith a first year's gross income of under $50,000, Andy wasn't exactly setting the financial world on fire. However, his accomplishment could not be ignored. As a rookie, he had done significantly better than the industry average for all agents of $36,000. And, he had earned about $30,000 of the $47,100 during the second six months of the year, which boded well for his second year projections and expectations. Following the completion of the next phase of his research, Andy was an expert on investment real estate in Newton. Andy sat down with Mr. Taylor to review his first year's performance. Mr. Taylor wanted to support and motivate him. "Well, you have done very well for yourself and the company this year. Now, tell me what to expect from you next." Andy began, "Well, you and Don have developed your own strong and loyal clientele, so I'm not about to argue with success. I want to start developing clients the same way." "And how do you propose to do that, Andy?" "With your permission, I'd like the company to subscribe to one of those ghost written monthly commercial/investment newsletters. I've got the information on newsletters from four different companies and there's one called, INVESTING IN REAL ESTATE, which I recommend. The cost to us would be about $230 a month. And..." Mr. Taylor interrupted, "The cost to me, you mean." Like any good salesman, Andy had his sales points ready. "Well, let me explain that I think that this would be a good investment for the company. If we take the approximately 300 investment properties in Newton and eliminate those owned by major corporations and owner-occupied two-families, we would have about 150 investors for our mailing list." "Andy, why are you excluding two-family owners?" Mr. Taylor wanted to know. "I'd say that they are not likely investment sellers." Mr. Taylor hesitated, "Well, Andy, I'm not so sure about that. How many owners are we talking about?" "About another 60, Mr. Taylor." "So, Andy, that would make over 200 subscribers. And postage?" "Yes, Sir, that would be extra. For 200 subscribers, I guess we're talking another $80 per month." "OK, we're up to $310 per month. Any other costs?" "Sir, I'd also like you to consider upgrading our computer system for about $900." "For the newsletters?" 
Andy nodded, "For the newsletter mailing list, yes. Also each month, I would have a one page double-sided insert for the newsletter containing local real estate investment news and, of course, a list of investment properties for sale. I would use the computer for that, and for regular opt-in emails to a select client list. And now that I have some research time free, I'd like to start studying computerized property management. Property management is a whole other field related to investment brokerage that we should consider."Andy was ready with his close, " With the newsletters, I'll have an opportunity to call the subscribers and ask for their opinions and start them talking about real estate investing and who knows..." Mr. Taylor recalled a comment made by the Old Andy, "Andy, I can remember not too long ago, you were dead set against cold calling." Andy had his answer, "Yes, Sir, but using the newsletter, this wouldn't be cold calling. The newsletter gives me an opportunity to open a conversation. I'd just be calling informally and shooting the breeze, so to speak. If the client happened to say that he wanted to buy or sell during the conversation, well..." Mr. Taylor was now surprised at Andy's seemingly ambitious plan. "You'd make 200 calls a month?" Andy put his work into perspective. "Actually, 200 calls a month would be less than 10 a day. I'd use the calls to fill in free time." Mr. Taylor nodded in satisfaction, "That sounds enterprising. Anything more?" Andy was not about to miss a sales opportunity, "Yes, Mr. Taylor, I'd like to run this idea by you. The office currently pays commissions on "for sale" property listings but not on "for lease" properties listed. As an incentive to bring more rental business into the office, I would suggest that we institute a policy of paying 20% of the value of the rental to the rental listing agent. Now, as you know, we have an even 50/50 split with 50% to the rental agent and 50% to the office. My suggestion is that we have a new split of 40/40/20 with 40% going to the rental agent, 40% to the office and 20% to the rental listing agent." Mr. Taylor was quick to see that with Andy's new formula, his cash flow stood to drop, "You're cutting me, the office, down 10% from 50% to 40%." Andy pushed on, "Well, my point again, is that you're investing in the business through this rental listing incentive program. In a very short time, I know you'll see that your 40% of a bigger pie amounts to much more than 50% of a smaller pie." Mr. Taylor needed to clarify. "Andy, you keep using the word "investing" when you want me to spend money?" "I learned the word from you, Sir." "OK, anything else? Your plans almost sound overly ambitious." Andy summarized his plans, "Well, just one more thing. I agree that I'm laying out big plans for the next year. I also agree that I need to focus. What I'd like to do is to concentrate on listing properties for sale and for rent and, also, sell properties. For the actual rentals, showing apartments, checking tenant applications, I'd like us to hire a rental agent who would work under your supervision together with Don and me." Mr. Taylor had to smile, "Now, you're starting to sound like the boss." Andy made his point. "Well, Mr. Taylor, I just want to be sure that all the apartments I list for rent get rented." "And, you get your 20%?" inquired Mr. Taylor. That was Andy's plan. "Yes, Sir, with your permission that's what I'd like to do." Mr. Taylor seemed genuinely pleased with Andy's progress. "Andy, get out of here before you cost me any more money. Son, in all seriousness, you've done a good job. If you keep it up, I wouldn't be surprised if you make a million before you're forty." Andy shook hands with Mr. Taylor, "Sir, thank you for the push and please don't stop pushing." "All right, Andy, I'll push you out the door right now so you can get on with those big plans of yours." Andy thought this to be an excellent time to ask for the business. "What is your answer to my proposals, Sir?" Being a knowledgeable investor, Mr. Taylor could make a decision and give an answer. "I'll give you my answer, right now. Go ahead. You've got a $3,000 budget for the computers and newsletters. If you see yourself going over that figure, tell me in advance. I don't like surprises." "Yes, Sir. Thank you, Sir." "Now, out, out." Andy didn't waste any time ordering his computer or the newsletter service. In three weeks, he was up and running. Each month for the personalized insert that was to go out with the newsletters, Andy wanted to include something that would provoke response. The first month was, "Are You Getting The Rents You Deserve?" In response to this question, Andy included an informal rent survey he had conducted and he noted the current market rents for studio apartments, one-bedroom apartments, two bedroom apartments, etc. As he called the subscribers during the month, he asked them if their rents were in-line. Most callers were impressed that Andy knew so much about their buildings and many volunteered their own rental rates and other information which, of course, Andy added to his individual property cards. Knowing the rental income of a building helped Andy estimate a market value for the building. In ending his conversation with each investor, Andy also stressed the fact that Taylor Realty now had an active rental division ready to serve the investment and commercial markets. The second month's insert topic was, "Do You Know How Much Your Buildings Are Worth?" Andy wrote a brief article on the various appraisal methods used for valuating income producing real estate. In talking with investors on this subject, Andy had an opportunity to gauge how realistic each owner was in estimating the value of his or her individual real estate portfolio. In general, an investor who valued property conservatively, low, might be a strong seller, while an investor who valued property aggressively, high, might be a strong buyer. In succeeding months, Andy's topics included, "Should You Diversify Your Portfolio?", "Are Your Building Expenses In Line?", "Your Property Taxes, Are You Paying Too Much?", etc. Each topic was chosen by Andy to give him more detailed information on particular buildings and also to acquaint himself with how individual investors viewed real estate investing. What were their goals and needs and how could Andy work to satisfy these objectives? Andy got many ideas from reading William Zeckendorf's autobiography, "Zeckendorf." Zeckendorf had been one of America's most successful real estate developers, brokers and investors. Andy was back to reading and the reading was paying off. One universal complaint that Andy heard from investors was their in hiring reliable contractors. Some investors had good plumbers but always seemed to have problems with electricians. Some had good carpenters but carpenters charged too much to be used as handymen. Some had good handymen but handymen's skills are usually limited. Some contractors wanted to handle only large jobs and brushed off requests for routine service calls. Other contractors preferred the small jobs and balked at undertaking larger projects. Here was a problem; was there a solution? Could Andy find a workable strategy and in the process build a list of loyal clients who would buy and sell properties using him as their exclusive agent? How could he do it? Andy simply had to do more, work harder and provide more services than other commercial/investment brokers in Newton. And, he had to prove to income property owners that he was now an important resource. If they had questions about investment property in Newton, he was the person to call. 
Go to Lesson Twenty Three17 | 18 | 19 | 20 | 21 | 22 | 23 | 24 | 25 | 26 | 27 Index
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