In commercial real estate agency a sales slump can happen with any property agent during the year. There are ways to fix the problem. A good plan of attack is required.
Let’s clarify the ‘pain’ that comes with a slump in property sales. An agent will lose market share and commissions; the longer the issue continues the greater the income deficit and debt in base salary payback. You cannot afford to let a slowdown in business occur. Constant action and focus to a plan is required.
So let’s also look at why the slump in sales will usually occur in commercial real estate. Try some of these familiar issues:
- Lack of listings (a big and common problem)
- Not enough enquiries coming in
- Slow results from marketing
- Holidays and seasonal festivities
- A poor database of leads
- Changes in finance availability
- Changes in the economy
- Lack of process with working a business day and building leads
Some things in the list you can control whilst others you cannot. The fact of the matter is that you should have a solid and successful plan of attack to ensure that the frequency of a sale slump is minimised and its duration is shortened.
Here are some tips to help you with this problem:
- You control your time each working day. Failure to use your time productively will start a downward spiral of lost income and market share. Your business day should be balanced between prospecting for new stock, serving current clients and listings, and moving current deals forward. The message here is that you must control your diary and your time every business day. Make the choices that let you connect with the market and new people to serve.
- Set up a prospecting model that you can implement simply and directly every day. A full 2 hours daily will be required to make cold calls and connect with new people. The process is hard for some agents given the pressures of the business and ‘call reluctance’, however the challenge needs to be met and addressed.
- Take a long look at your database and revisit it to talk to the people that are still in the industry looking for properties to buy or lease. Strengthen your database with more prospecting and call contacts.
- Get into your local area and meet local business owners. Some of them will lease and others will own the property in which they are located; either way you can help them. They are also a great source of local property information and leads. Talk to them and ask the questions.
In many respects a ‘sales slump’ in our industry can be and usually is personally generated. To get back on track it is simply a process of putting yourself into your sales territory and getting back in front of the right people.