Essential New Home Sales Management - … New Home . Sales Management . January 21, ... John Doe...

Essential New Home Sales Management

January 21, 2009 3:30 pm – 5 pm

Tom Richey, MIRM President

Essential New Home Sales Management 2

Essential New Home Sales Management

“To produce sales on a planned basis, manage sales with a ‘hands-on’ status.”

It’s a People Process

I. Function 1: Staffing “The first rule of sales management is to staff to the needs of the project and the customers, not staff to the needs of the salesperson.” “It is better to staff with one quality salesperson than two non-quality salespersons.”

II. Function 2: Recruiting “If you start with poor material and work like a dog to develop it, the best you can realize is fair material. If you start with average material and work like a dog to develop it, the best you can achieve is good material. However, if you start with good material and work like a dog to develop it, now you can achieve exceptional sales material.”

Richey Resources – ©2009 All Rights Reserved


III. Function 3: Selection APTITUDE + ATTITUDE = ALTITUDE

Positive mental attitude moves mountains!

P ............ Plans R ............ Researches O ............ Organizes F ............ Follows-Up E ............ Executes S ............ Sells S ............ Services I ............ Involves O ............ Observes N ............ Neutralizes A ............ Attitude L ............ Listens

IV. Function 4: Sales Training

“Training is a sorely lacking discipline in the housing industry. We may well have a crisis in training all across the board. Sound like a broken record? It should! Salespersons’ training, or the lack of it, may be the single most profit-seeping event of all the home building principles.”



Sales Manager’s Training Matrix

OBJECTIVE METHOD OF LEARNING 1. The sales manager must

have a thorough understanding of the paperwork process.

All paperwork, forms, reporting, contract procedures, research projects plus policies and procedures must be trained into the new sales manager. Also, the organization chart.

Vehicles: John Doe forms manual. Coaching by present sales management.

2. The sales manager must know financing.

The sales manager works sample financing worksheets. Vehicles: Lenders and executive management. Practical

Applications Kit 3. The sales manager is

trained on computer procedures.

All aspects of the computer system are learned by the sales manager. Vehicles: Training plus coaching by present management.

4. Knowledge of the competition is essential to the sales manager’s success.

Utilizing competition evaluation forms, the sales manager performs an in-field analysis of the largest competitors.

Vehicles: Competition evaluation forms and Power Marketing Index. Subsequent coaching by upper management.

5. An in-depth understanding of the new home counselling process must be acquired.

The sales manager must learn the company and community specifics of “counselling the company way.”

Vehicles: a. The sales manager must take traffic overage and practice the

selling process to completion. (Optional: sell minimum one home).

b. The sales manager works the new home selling system to an understanding of the process.

c. Knowledge and a buy-in of the company counselling process is achieved.

d. The Ten Commandments of Value Base Counselling are studied and mastered.

e. The company counselling MPS is reviewed and acknowledged.

f. LCD closing procedures are learned. 6. The sales management

processes are studied and Since knowledge of the sales management process is essential to success, the process must be assimilated over a period of spaced



learned ASAP. repetition learning. Suggested time frame: 6 months. Vehicles:

a. The Essential New Home Sales Manager’s Handbook b. The Essential New Home Sales Person’s Handbook c. Coaching by company management and present sales

management d. Sales Meeting Synergies e. Execution of the Sales Manager’s MPS in action – monthly

report form 7. The company marketing

processes must be learned as the sales manager will interface and assist in decision making on many issues, particularly site merchandising and prospect sourcing.

Today’s modern sales managers must be conversant with company marketing procedures even if not involved in the decision-making process.

Vehicles: a. NAHB NSMC Institute of Residential Marketing b. Knowledge of non-traditional media prospect sourcing and

real estate broker co-operation is acquired through special programs.

I. Summary Growth of the company sales manager is never ending. The company sales manager knows that the true worth of his/her expertise is the ability to seek out and acquire the very best salespersons in the marketplace and then train them to proficiency. Goal: The bottom third of the company’s sales staff consistently out-performs the top third of the competition’s sales staff.

V. Function 5: Motivating



M........Money O ........Opportunity T.........Training I ..........Involvement V ........Victorious Attitude A ........Approbation T.........Tender Loving Care E Enthusiasm

The 10 Biggest De-Motivators: 1. Non-competitive compensation 2. Unrealistic sales goals 3. Under or over staffing 4. Absence of training 5. Unprofessional sales management 6. No recognition from uncaring management 7. Inconsistent follow-through 8. Lack of involvement 9. Management badgering 10. Poor communication

VI. Function 6: Monitoring



Sales Management “Rule of 5” Worksheet Project: Date: Salesperson: Grade: YES NO 1 Did salesperson self-generate five or more prospects per week during

audited time frame? ____

____

How many prospects were self-generated? ________ 2. List the salesperson’s five most sales-effective ESP’s.

(Exclusive Selling Propositions)

______________________________________________________________ ______________________________________________________________ ______________________________________________________________ ______________________________________________________________ ______________________________________________________________ 3. List the USP’s: (Unique Selling Propositions) ______________________________________________________________ ______________________________________________________________ ______________________________________________________________ ______________________________________________________________ ______________________________________________________________ YES NO 4. Upon review, was the salesperson proficient with the five-step

neutralization formula? ____

____

Was he/she skilled in role playing the 5 biggest objections? Objection Neutralization ________________________ ______________________________ ________________________ ______________________________ ________________________ ______________________________ _________________________ ______________________________ ________________________ ______________________________ YES NO 5. Did the salesperson ask five closing questions on each presentation? ____ ____ 6. How many prospects did the salesperson take to the

closing table during audited time frame? __________

7. Has the salesperson been following up with five-star follow-up? ____ ____ A. Have you audited each prospect card? ____ ____ B. Have you followed-up on the follow-up? ____ ____ 8. How many confirmed appointments did the

salesperson book for the previous weekend? __________

How many does he/she have booked for the forthcoming weekend?

__________



9. How many homeowners were contacted for referrals in person during the audited time frame?

__________

10. How many realty firms were contacted during the audited time frame?

__________

A. In person? __________ B. By telephone? __________ 11. Role play the salesperson’s closing process GRADE SALESPERSON: Weak ________ Average _______ Proficient _____ Master Closer _____ 12. List the self-improvement resources the salesperson utilized during the audited time

frame: ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ COMMENTS: ________________________________________________________________ ________________________________________________________________

Sales Management’s “Rule of 5’s” Questions for Planned Encounters My five objectives on this encounter are: 1. 2. 3. 4. 5.

THE QUESTIONS 1. How many did you take to the closing table the last seven days? 2. How many appointments do you have for this weekend? 3. What five inventory houses are you concentrating on? 4. Who are your 5 hottest prospects?

5. Who are your 5 self-prospected prospects?



6. Give me your 5 favorite closing questions?

7. What 5 realty firms have you contacted?

8. Name the 5 homeowners you have contacted for referrals.

9. Kindly recite your 5 levels of qualifying.

10. List your 5 ESP’s (Exclusive Selling Points)

11. List your 5 USP’s (Urgent Selling Points)

12. What are your 5 biggest objections?

NOTE: Any salesperson who writes 5 good sales in one week is eligible for the firm’s Master Closer Award.




Summary:

Tom Richey President

Richey Resources Office: 713.622.0877

Toll Free: 800.346.3354 [email protected]

Essential New Home Sales Management - … New Home . Sales Management . January 21, ... John Doe...

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