In commercial real estate today, it is common for the salesperson or agent to be involved in competitive proposals and presentations. It is extremely common for the prospective client to obtain four or five alternative proposals regard the marketing of their property for sale or for lease. Here are some tips from our Newsletter for Commercial Real Estate Agents.
This then says that you only have one chance at competing with the other agents and convincing the client of your relevance to their property needs and solutions. On that basis your presentation skills and local market knowledge will be extremely important to the conversion of new business.
Top agents know how to convert the interest of the client towards the proposal. Here are some rules that can apply to the sales pitch and presentation process in commercial property sales, leasing, or commercial property management.
1. Most sales pitches and presentations should be successfully completed inside 30 minutes. During that time your connection with the client has to be convincing, knowledgeable, and relevant. Most importantly the client needs to be encouraged to speak and comment on the ideas that you present. Without the feedback, you cannot adjust your approach and pitch. The presentation has to be a two way event.
2. There are different characters when it comes to clients and prospects. Some will be open and encouraging when it comes to conversation, whilst others will be restrictive and closed. The latter will always be difficult to bring into the discussion although you should have some tools to facilitate the process. The tools can be written proposals with parts for the client to review or complete, photographs of the property displayed on a laptop in rolling slide presentations, and specific documents that you can give to the client and involve them during the presentation. Encouraging the client to get involved in your presentation is all part of the process.
3. If the client chooses to compare your proposal against other agencies, it is likely that they will request some discounts or reductions in fees. You may have some small margin to give them a reduction, although the process should not be encouraged given that each and every property taken to market today requires real effort and strategy when it comes to marketing and negotiating.
4. At the end of any presentation or sales pitch, you should ask for the business, and be prepared to put a listing proposal in front of the client for immediate signature. Some clients may decline to sign immediately given that they are going to interview other agencies. On that basis it is important that you put a time frame on their agreement to your proposal. Seven days is sufficient notice for the acceptance of the proposal. Open ended proposals achieve very little today, given that the property market is changing significantly in many different ways.
5. Introduce some questions to the presentation that you believe your competitors should address or qualify for the client. The questions should be specifically targeted to the challenges of the market currently.
6. Build your marketing campaign around the target market with innovation and relevance. Show the client how you are going to tap into that target market through real personal effort. Far too many agents do not put in the personal effort when it comes to marketing commercial property today.
7. Make sure that your proposal document has an executive summary at the front. That will contain all the highlighted points of the proposal itself. Walk the client through the proposal and take them to the answers that you have provided relevant to their identified challenges.
Every proposal and presentation should be supported by valid and relevant market information from comparable properties nearby. When you can show the client that you really understand the trends of the current property market and have excellent strategies to resolve their property challenge, you have good chances of converting the proposal to a successful listing.
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