Looking Out From the Garage

Back in the 1940s, during World War II, scientists at Dow Corning and General Electric were working on a replacement for rubber.  The Japanese controlled much of the rubber producing countries... and thus, controlled much of the rubber production. 

Separate teams of scientists developed a material that they thought interesting... but it was an utter failure.  It was cool... but didn't hold its shape.  It had a high melting temperature... which was good, and was elastic... which was good.  It wouldn't even get moldy.  But because it wouldn't hold a shape, it was a failure. 

The team that is generally credited with the invention sent samples to scientists all over the world... nobody could find a use for this cool new material.  How could you have a bigger failure than a material that nobody can find a use for? 

Several years later, a sample found its way into the hands of a toy store owner in New Haven, CT.  She put it in her catalog and it outsold every other product... except Crayola Crayons. 

Just a few years later, during the Korean War, one of the ingredients was in short supply... and the small company that was selling it almost went out of business...  Another failure. 

Ten years later, this useless material was being sold around the world... even in the Soviet Union.  Astronauts were using it in 1968... on the moon. 

 

My son got a small plastic egg for Halloween.  He bounced the inorganic polymer around the kitchen for a few minutes before getting bored with it...  He handed it to me and the first thing I did was find a newsprint magazine...  When I flattened the material out and pressed it onto the newsprint, he was curious... 

As he asked what I was doing, I just played coy... 

For the next hour, and for several hours today, Garrett discovered the joys of Silly Putty, a failed accidental invention from WWII.  He made prints from the magazine.  He bounced it.  He shaped it.  He stretched it.  He rolled it. 

 

Yep, Silly Putty is a study in abject failure.  They didn't mean to make it.  They didn't know what to do with it once they made it.  They originally marketed it to the wrong group...  It was marketed to adults, even though the sales were primarily to kids from 6-12.  Another war almost ended it. 

Failure...

Have you seen the video? 

It seems that Air New Zealand has been plagued by one of the same issues as every other airline... bored passengers during the safety briefing... and why not?  I'm not an Air Warrior, but I could just about do the briefing myself... it hasn't changed in the four decades I've been flying.

But... safety is important, and many of us might be better served to watch the briefing every once in a while to keep the emergency information fresh.  So instead of just letting out a sigh and forgetting about it, Air NZ is being proactive.

What better way to be proactive than to strip the flight crew naked and film them!  Heck, I have never been on a flight with Air NZ, but I watched it... 

By the way, that is body paint... and if you didn't figure out, they were pretty modest about it for being naked.  If AirTran can get Danica Patrick to strip naked and do the safety briefing, I might have to fly someplace just to see it...

A billion here, a billion there... pretty soon we are talking about real money. 

And yes that seems to be the thought process up in DC these days.  Bail-outs beget bail-outs.  And now we are talking about one trillion dollars.  $1T... heck, that should be bold.  $1T.

Without getting into the ethicacy of the "Mother of all bail-outs", this has got to be a giant wake-up for politicians, regulators, banks and everyone else.  The country is literally a different place today.  We now have a government that owns "private corporations."  And we are soon going to have a government that will own scores of thousands of "private homes."  

And to get a better idea of the magnitude, every man, woman and child in the country, legal or illegal, will owe about $2900.  In effect, we have to add about $10,000 to every household for the bail-out. 

There are no doubt a lot of opinions about whether this bail-out will be good for the economy, bad for the economy, good for real estate, bad... etc.  The only way to know will be to look backwards at it. 

But make no mistake, this is HUGE. 

For anyone not paying attention to Inman News, or some other source, you might have escaped noticing that Help-U-Sell's franchiser filed for Chapter 11 Bankruptcy recently (reported Friday, August 15th, 2008). 

Since 2006, their franchise offices have shrunk from 820 to about 450. 

Go read the story before it drops behind the Inman curtain...  And then let's think about something. 

Ready?

Those that are touting discount brokerage have been calling on the death of the "traditional" real estate brokerage for some time.  When the market started to slide, they knew that discounters would prevail and full service brokers would fall by the wayside. 

After all, times are tough and equity is scarce.  People that are selling don't want to give all of their equity to a real estate agent.  Obviously, saving money is the better plan...

But...

That hasn't been how it worked.  And the discounters should have known this.  Help-U-Sell went through bankruptcy during the last downturn, in the mid 1990s.  So, why?  Easy... when the going gets tough, sellers need a brokerage that can deliver.  The discount model doesn't deliver in a tough market.  One simply can't deliver appropriate marketing for a property in a tough market for $599.  In fact, one can't deliver ANY marketing for a property for $599.  By the time they pay their fees, they don't have much left...

And then there is the "Secret"

sshhh... don't tell anyone.  They don't care if you sell your home.  Doesn't matter.  They still get paid.  BuyOwner.com still gets paid.  Help-U-Sell still gets paid.  FSBO.com still gets paid.  They get paid to list your property.  They don't get paid to SELL your property.  The traditional agent ONLY gets paid if they deliver.  They take on the risk and expense. **I have been notified by a franchisee that Help-U-Sell doesn't charge upfront for their services.  I can't confirm it through their website, but I'll take his word for it.**

It'll be ok...

Help-U-Sell will probably emerge from this BK like they did the last one.  Until the market soars... and they soar again... and then the market poops... and they poop again.

I wrote a post yesterday that managed a feature.  The premise of the post is simply this:  Slow and steady wins the race... NOT!

And it is the truth... Slow and Steady is NOT a formula for winning races.  It sounds nice, and it has fable support, but it isn't the way to get ahead and win. 

But there are two things that need to be added. 

• Speed has to be used as a tactic and part of a strategy.
• Speed and recklessness are not the same thing. 
  

Many folks confuse tactics and strategy.  Strategy is a long term vision.  As a real estate agent, my goal is to dominate my service area.  My strategy is to leverage Web 2.0 technologies like blogging and media rich experiences to help connect with consumers in the area I work.  I will multiplex that with face-to-face, print and other mediums to make people aware of the online presence...  (how "business school" did that sound?).  Tactically, I am writing blog posts that are keyword rich, and relevnt to the readers in the area I service.  Professional video, amatuer video, embedded presentations, high quality photos and other entertaining and informative media are tools I use for the tactical impact. Tactically, I am using targeted print ads that will drive traffic to the blog.  Tactically, I am metting with people that can help spread the word... and drive traffic to the website.

Strategically, I endeavor to be on the front side of the technology wave.  I won't hang out right at the bloody edge, but I want to be seen as an early adopter. 

Tactically, I am deploying these products individually to meet the strategic goal. 

So, how does this relate to the previous post?

Simple...  Kind of.  In racing, the goal is to win the race.  The strategy varies, but usually involves driving really fast... and in NASCAR, turing left...  The tactics vary widely depending on the situation.  But at NO point is the strategy or tactics slow and steady wins the race.  It might be to hang back on turn entry (going slower than possible) in order to pull out a run coming off of the turn.  It might be to slow down in a particular turn complex in order to save the tires.  But the tactical goal is always the same... As fast as possible and as slow as necessary. 

We need to deploy technology that benefits our consumers as fast as possible... because it is a benefit to them in their search or sale.  And we need to do it as slow as necessary... so that we aren't using unreasonably unreliable technologies, or gimmicks that won't really work, and are just a waste of time/money. 

Sometimes we will go too fast, wasting time or money...  Sometimes we will go to slow, wasting opportunity. 

The winner of the race is the person that made the fewest mistakes, AND averaged the highest speed!

Diamond Dwellings is working on being the team that fields the winners... 

;^ )

 

Unless otherwise noted, all content of this blog is the property of Lane Bailey, ©2012 Lane Bailey. 

I'd love to hear from you...

Seth Godin tells us in Purple Cow: Tranform Your Business by Being Remarkable that the way to business success is not by doing things the same way and marketing to the masses with the same message as everyone else, but rather it is by being remarkable.  In being remarkable, the key is being noticed. 

As you drive down a country road, you may see hundreds of cows... but if you see one that is purpple, you WILL stop, and you WILL take pictures, and you WILL tell your friends.  The purple cow will be remarked on, and will be remarkable. 

But the question is how to make YOUR business remarkable...

The fast and easy version is that you need to have a Unique Selling Proposition... a USP.  Instead of being everything to everybody, you need to be the right thing for the right person.  As real estate agents, we can do that by being the absolute expert in a geographic area (geo-niche)... basically, that is the overt goal of Localism here, or Diamond Dwellings Realty.  The other way we can do that is through a demographic niche.  You can specialize in golf properties, horse properties, lake homes or properties for auto enthusiasts. 

But what about builders?

You are actually my primary audience right now...  Homes have become the ultimate commodity.  Builders are fighting it out with price, and sacrificing their margin.  In some areas, one builder is across the street from another... location isn't a decider anymore. 

How can a builder be remarkable?

By building the house with materials that are better than another?  Not really, because much of it is invisible, and many buyers won't recognize the true difference. 

But, that doesn't mean it can't be done...  It could be done by building homes that take advantage of the best technologies to reduce energy requirements... but that isn't as remarkable as it should be.  Unless your home delivers utility free living (or so reduced it might as well be free) you aren't going to get the buzz from green building...

So, build something that NOBODY else is building.  Build something that will make the local and regional TV stations come out to talk with and about you... in a good way.  Build something that might get you on the national network morning shows.  Build something that will get you millions of dollars of FREE advertising... buzz... viral marketing.  Build something that will make buyers line up to be a part of YOUR community. 

Build with Car Guy Style...

Did you think I was going to leave it there? 

I wrote a couple of posts last year... yes, last year.  First, I took off on the signs I see all over the place, "If you lived here you'd be home now".  Talk about NOT remarkable.  I know where 20 of these are.  And a few of them are in places that are NOT even convenient... meaning that I'm not on my way home. 

If you lived here, you'd be Rock Crawling/Drag Racing/Road Racing now!

Think about it.  National enthusiast magazines would write stories.  The enthusiast press would be all over it... and there could be mainstream media coverage because this would be a purple cow... remarkable.

Let's hammer on the NAR some more. 

All real estate is local

The NAR has been pounding this message in response to the perceived unfairness of media reporting.  And while there is a case to be made that the media isn't presenting a balanced picture, I don't know if the current campaign is the answer...

And here is why...

There IS a national real estate market.  Sure, you can't move a house from one place to another... ok, seldom can you... but, that isn't how the market is defined. 

When "the stock market" moves one way or another, it is the aggregation of a bunch of stocks.  Depending on which index you are looking at, it may be dozens, hundreds or thousands of stocks.  And those stocks (and the others lumped in with them) may very well be moving in a different direction from any or all of the indicies. 

And yet...

We don't see a cry from the companies involved that each time CNN says that the Dow declined 50 points that they add "but to find out about stocks you may be interested in, please consult a professional stock broker."  And, it isn't like most people assume that if "the market" is down that all of the stocks in the market are down... just like real estate. 

So, while it is true, whining about it probably doesn't help...

Especially from the NAR.  On the way up, their numbers and spin were basically honest.  On the way down, the spin seemed too self-serving.  So, now when the NAR speaks, EVERYONE throws salt over their shoulder and engages the BS filter. 

Instead, say "it is what it is", stop whining and acknowledge reality... all of the realities.  "The national market looks like it is coming off of a bloodbath, but the damage has primarily been in ___."

But what do I know?

Maybe for free...  Maybe for $999. 

The simple fact is that not all sellers NEED a real estate agent.  I have some folks I working with right now that have moved 38 times in 30 years.  They have bought and sold 38 different homes in 30 years.  In real estate terms, they have transacted 76 sides.   Breaking it down, they have 2.5 sides per year for 30 years.  There are full time agents in the business that haven't done 76 sides... or even 2.5 sides a year for a long stretch. 

They don't need an agent. 

Ok, I'll admit that they actually like to work with an agent because it is more efficient for them, but there are other sellers that don't need an agent.  And having the option of getting into the MLS and getting a solid launch when they are selling their home is great. 

What If?

How about sitting down with an agent and having an honest conversation about selling your home? 

The program is $999, but we offer a few different ways to recapture that fee.  We also offer the option to convert the listing to a full service listing if that is what you decide you need.  Want to talk about it?  Give me a call.  Shoot me an email. 

What If? you had options?

In 1997, Pat Johnson and I delivered a Jeep to Salt Lake City, UT.  On the way, we stopped in Moab, UT for a few days.  That was the first of several trips back to Moab.  But, on that first trip, we met a waiter at the Moab Brewery.  It was completely unexpected, and took a while to take root, but had a very important marketing message. 

He had come from Califormia to Moab because he was a mountain biker and had a goal of biking in the 2000 Olympics.  As he took our order, he seemed to be just a CA surf/waiter/biker dude.  Nice guy... able to tell Pat about the various micro-brews that they restuarant offered. 

Moab is an interesting town.  It is surrounded by National Parks and National Forest.  The area is incredible in its scenery and its uniqueness.  The "Slickrock" is a draw for Jeepers and mountain bikers from around the world.  Movies are filmed there, and have been for decades.  During the winter, most of the tourists are from outside of the US. 

So, as we enjoyed our dinner, along with a Dead Horse Ale, we were treated to a different side of this waiter.  As he approached and interected with different tables and groups, he spoke different languages.  And he spoke them well.  French, German, Japanese, Italian.  Surfing/Biker dude was not what he first appeared. 

So, as dinner was getting done, we asked him about his languages.  He told us that when he came to Moab to bike and train, he had never waited a table, and never spoke another language.  But, he needed a job.  And then he learned from another guy that some of the international tourists would tip better if you spoke their language.  Others would hire him as a guide on the bike trails. 

So he spoke seven languages.  In two years he learned 5 languages fluently, and 2 more enough to get by on the trail and in the restuarant.  And he was making a very good living and had friends all over the world... from waiting tables and guiding tourists on mountain bikes. 

I have no idea if there was even a mountain biking competition in the 2000 Olympics... it was a demonstration event at the 1996 Olympics here in Atlanta.

And this doesn't have to do with speaking a foreign language... it has to do with understanding the desires of youe consumers.  And meeting those needs and desires.  I'm sure that few of the Japanese visitors to Moab went excepted to find a bike guide that spoke their language fluently... nor many of the Russians. 

Let's contrast this...

Yesterday I pulled a political ad from my mailbox.  A local candidate left a leaflet... completely in Spanish.  The only English on it was the campaign headquarters address.  It isn't a problem to target market your audience... but there aren't many "Spanish only" speakers in this neighborhood.  There are a few people that speak Spanish... but they also speak English.  In fact, there are probably a lot more people that can't read the flier that this candidate distributed. 

Instead of knowing the target market, and understanding their needs, this candidate chose to speak the wrong language... and lose the message. 

Speak the language of your target market...  Whether it is knowing about golf in a country club community, or cars to a garage based demographic, understand them and their needs. 

 

Auto restoration, real estate, diet... whatever.

It's all about building the system, examining the system, testing the system...

and doing it all over again...

and again... and again.

I am building a Jeepster/Commando from the ground up. Currently I am building a frame. I know that in order to get it right, I will put it all together, and then I will take it back apart... several times.

I do the same thing with real estate. Is that an admission of imperfection? Absolutely. But, I do it more often than most. Most sellers (or buyers) only go through the process a few times in their lives. And they are spread out. So, the conditions that they operate in are often not comparable. Testing and getting a meaningful result isn't practical. In effect, when people choose to buy or sell without representation, they are re-inventing the wheel.

As a professional, I do it a bunch of times each year. So, I can build a system to sell property. I can test the system. I can rebuilding it for the next time. And it will be tested again.

If someone tells you they have a perfect system... think about that for a few minutes. Perfect? Really? There is always a way to make it a little better...