Singing Pig

rialto:

Less competitors advertising means more responses for those who continue. 

True - but as you 'raise the bar' discount wise, the number of people who say 'yes' decreases dramatically, plus the number of enquiries which you are forced to discard due to insuffient enquity also increases.

Im sure that many people would sell for less, if their outstanding mortgage would allow them to.

Therefore the greater discount you are looking for - the fewer people are prepared say yes - or are able to say  yes. 

Overall though, I agree that the number of competitors is falling, which is good news, although I thing this will soon change, once investors ability to finance deals becomes easier.

Furthermore I believe that once credit becomes easier to achieve, that the market will quickly bounce back, as everyone who is able to - does pile back into the marketplace to snap up the remaining bargains. 

Robert 

 

"True - but as you 'raise the bar' discount wise, the number of people who say 'yes' decreases dramatically, plus the number of enquiries which you are forced to discard due to insuffient enquity also increases"

 

and thus the number of leads you sell will be affected .......  surely lead sellers main motivation for setting  their own  bar figure has to be to produce the maximum number of lead sales  -  irrespective of whether the lead-buyers get a deal out of it or not .......   

clottie:

surely lead sellers main motivation for setting  their own  bar figure has to be to produce the maximum number of lead sales  -  irrespective of whether the lead-buyers get a deal out of it or not .......  

Hi Clottie

I cant imagine why anyone would want to set up a business with all the risks involved, unless it was going to make a profit (property investors included).

Im sure that the the declining number of lead sellers pays testiment to the quality / value of their products, as lead selling is a competitive field and only those who maintain high standards will continue to prosper.

Robert

LOL !!!!!!    the thing i lurve about you Robert is that you can find a positive marketing spin for ANY statement i,or anyone else, can produce   !!!   when you get fed up of marketing  - you MUST go into politics  -you'll fit right in !!!

Robert - I disagree with Clottie - you could never be a politician - youre far too honest - possibly for your own good!

Yes, you will get less yes responses if you lower (not raise!) the discount bar - but just because that would affect your bottom line - it doesnt mean it wouldnt be good for the quality of your leads - and ultimately your reputation!

The example i gave on another thread about inflated values being given on leads offered, is not a one-off. A combination of asking yes/no/maybe based on inflated , not real, valuations means some leads sold can be about properties that are effectively on offer at retail prices (EA shop window prices - less a cheeky offer being accepted!)

If sellers cant say yes at say 25% in the current climate, then you are protecting your customers who may buy the lead and then do a deal via lack of research, or lack of the requisite skills.

Surely you must concede that there is something y0u can do to compromise matters so that situations like I discovered  dont occur? After all, by being the trailblazer here it would give you the competitive edge.

Im getting lots of requests for one on one tuition from people who buy leads,These people may not have the time or inclination to arrange and maintain a local marketing operation - which is understandable in many cases. However, they  have no real research, people, negotiation and consolidation skills. They are working out that a combination of an 'OK' lead and the right skills is a winning one.

I am then able to pointout the pitfalls and caveats to them, and explain that yes - one deal will make it all worthwhile...but also that one disastrous deal avoided through knowledge acquired is also a massive investment.

 

 

"" you could never be a politician"" - he could  -  but only  because he has an answer for ABSOLUTELY everything !!!

Hi Rialto

I understand point you make about some vendors having an unrealistic optimism about their MV.

I would ask in response..... 

Is it better to have X qty of leads which have said YES to 'upto 80%' of MV and look at these as having a strong INTENT to negotiate further?
or
Is it better to change the question to 'upto 75%' of MV, and potentially lose half your leads, together with the opportunity to NEGOTIATE with those who would have said YES to 'upto 80%' of MV.

You can't do business with the vendors who don't fill out your application form.

Furthermore, if competitors (both online and in the newspapers and leaflets) are seen to be offering upto 80% or more, you run the risk of losing even more potential applicants if we are seen to be offering (at face value) substancially less than others.

Plus - there is also the likelyhood that leads would cost more if there was less yeild, therefore the cost per 'deal' to the investor, could potentially be higher - or at least no cheaper by increasing the discount. 

 
You and I have both been involved in direct sales for a long time and understand that there is a fine balance here between QUALIFICATION and NEGOTIATION.

There is no substitute for research and negotiation, and as you say, learning which deals to do, and which deals to walk away from - just increasing the discount on the application form is not a solution to a lack of either of these skills.

This would probably account for the increase in demand for ready made deals, from those investors who dont have time, experience or inclination to do the research and negotiation for themselves.

Having said that - Im always willing to listen to another point of view (especially my own customers), and make changes where appropriate.

Despite what Clottie may think - I really do look for win-win relationships with my investors  

Robert
 

rialto:

If sellers cant say yes at say 25% in the current climate, then you are protecting your customers who may buy the lead and then do a deal via lack of research, or lack of the requisite skills.

Surely you must concede that there is something y0u can do to compromise matters so that situations like I discovered  dont occur? After all, by being the trailblazer here it would give you the competitive edge.

Rialto - I thought again about what you said and have changed the discount on our application form to 25%.

Hopefully a Win-Win situation for everyoe....

CLICK HERE FOR FULL DETAILS

Robert