Bitter Bob
December 16, 2010 Leave a comment
G$ Consultation – Enter Agent Bob
G$: Hello Bob. How are you?
Bob: OK Greg, thanks.
G$: I was just reading your bio. It looks great. You’ve been an agent for 5 years?
Bob: Yup. Feels like a lifetime.
G$: How do you like the business?
Bob: I hate it. The clients are all jerks. I never catch a break. I’m not making any money and frankly it sucks.
G$: I understand…a lot of experienced agents are having difficulties the last 6 months.
Bob: It’s a nightmare and I really am thinking about doing something else.
G$: I’m looking at your production history here and I see you made over $100K 3 years in a row in 05, 06 & 07.
Bob: Yes, I did but 08 & 09 were terrible. I had 5 buyers that I was sure were going to buy this year but they didn’t pan out.
G$: You and about 5,000 other agents had the same problem last year Bob.
Bob: Whatever…it just sucks.
G$: Do you want my help Bob?
Bob: Isn’t that why we are here?
G$: Not necessarily. Why are you here?
Bob: My manager said I should come because you were my last hope.
G$: Do you know why?
Bob: I’m not sure but it’s probably because I’ve only closed 4 rentals this year.
G$: How do you feel about your production this year?
Bob: I told you it sucks. Those guys should fire me.
G$: Do you want to be fired?
Bob: Not really, I guess.
G$: Do you want my help?
Bob: What do I have to lose at this point?
G$: But do you want it?
Bob: Yes, I guess…yes, I do.
G$: Good. That’s the first step. Now we have a chance.
Bob: What do you mean, “we”?
G$: We’re partners in this Bob. My job is to help you and I can’t help you unless you want to be helped.
Bob: If you want to help me then tell me how to sell apartments in this market because I really hate rentals now.
G$: I will do that but I need to know if you believe I can help you. Do you?
Bob: I know the business.
G$: (nods his head in silence)
Bob: (long pause)…All right.
G$: All right?
Bob: (laughs) Yes, I believe you can help me.
G$: (smiles) Good. Now we really have a good chance.
Bob: You crack me up.
G$: Just doing my thing…I was talking to your manager and she said you used to rent 6 or 8 apartments a month.
Bob: Yeah I did…back in the old days but the market was different then. Now I’m more into sales. Can we talk about that?
G$: I’ve been in sales for 25 years. I want you to sell apartments, believe me. We’ll get there before we are done.
Bob: I’m listening.
G$: Good. Let’s start with this…How much money do you need to pay your bills this year?
Bob: Minimum? Well, about $80K to break even.
G$: How much did you make last year?
Bob: $43K.
G$: So your business ran at a deficit last year and I guess 4 rentals in the first quarter of this year and no sales isn’t helping?
Bob: No, it’s not. It’s a disaster…just terrible.
G$: Bob does it makes sense that the same actions on your part will probably equal the same results?
Bob: Yes, yes, I know but it’s not me…it’s the market!!!
G$: You mean the market changed?
Bob: Duh…of course it changed.
G$: Let me see if I have this right…the market changed…you did the same things that used to work…and your income was cut in half, correct?
Bob: Well, if you put it that way…
G$: Am I wrong?
Bob: I guess not.
G$: New sales volume has gone down 30 plus percent over the last 2 years in number of transactions depending on who you believe. Do you agree?
Bob: Sure.
G$: In addition, prices have come down substantially which means smaller commissions on the deals as well, correct?
Bob: What the hell are you trying to do? Talk me out of doing sales for God’s sake?
G$: No, of course not. What I’m trying to do is develop a business plan with you that will help you survive until the market improves.
Bob: Survive?
G$: Yes Bob, survive. One of the common denominators of success is the ability to adapt and survive a market downturn like this.
Bob: Makes sense.
G$: How many apartments have you sold now in your career?
Bob: I think about 30 or close to it.
G$: In 2007 you closed over 10 sales, right?
Bob: Actually 14.
G$: And you will again someday and maybe even more than that.
Bob: From your mouth straight to God’s ear, Baby.
G$: All we need to do is make sure you last in the business until things turn around a little.
Bob: I hear you.
G$: Good. In 2005 you made $110K. Did you close any sales that year?
Bob: No but I put 3 in contract that closed later on.
G$: So then in 2005 you made over $100K just in rentals?
Bob: Sure did…I was a machine back then.
G$: Could you do that again?
Bob: I hate rentals, Man…all that running around…$1,400 walk-ups…$2,400 2-beds…I don’t want to do that again.
G$: How much are your bills this month?
Bob: You’re killing me.
G$: Are you closing a sale soon?
Bob: You know I’m not.
G$: The people you write the checks to don’t care if the money comes from sales or rentals.
Bob: I know.
G$: If you rented 4 apartments a month…just 1 per week…could you pay your bills?
Bob: Yes.
G$: We both know you are going to sell some apartments this year, right?
Bob: Yeah, eventually.
G$: But not as many as 2007, right?
Bob: That’s highly unlikely.
G$: So we have a choice…make a lot less…or adapt our business plan.
Bob: I hate rentals.
G$: For you Bob…think of it as a means to an end.
Bob: Rent enough to pay the bills?
G$: Exactly…you shouldn’t hate rentals…you should love them…they will keep you alive!
Bob: But I want to sell.
G$: How many sales appointments do you have a week these days?
Bob: Not sure, it varies…maybe 3 or 4 on average.
G$: OK. Then how many rental appointments a week would you need to close a deal a week?
Bob: 5 to 7 maybe.
G$: It sounds like 10 appointments a week then…sales and rentals combined. Can you do that?
Bob: If I get in the right head.
G$: Well then, if you get in the right head, you will rent 1 apartment a week and still sell too and the sales will be gravy.
Bob: Can we talk sales?
G$: We are! Do you keep track of your clients?
Bob: Of course. I got on that band wagon a long time ago.
G$: Then all these rental clients you work with this year will turn into your buyers of the future.
Bob: Good point. That’s how I got started doing sales.
G$: And it will happen again. When we come out of this downturn you will be one of the top earning agents in town!
Bob: I guess you could say that for a lot of agents, couldn’t you?
G$: I say it every day Bob. Did I help you?
Bob: Yes…yes, you did Greg. Thank you.
G$: Do you believe you will succeed?
Bob: You know what…yes, I do!
G$: So do I!