Why They Buy

Get inside the customer's mind.

Source: CUSTOM HOME Magazine
Publication date: 2006-05-01

| By Paul Montelongo |

Due to the convenience of the World Wide Web, your customers know more about your products, your services, your competition, your company, and the housing industry as a whole than ever before. The most notorious influence on home buyers over recent years has been the Internet.

These market-savvy customers are not about to allow themselves to be duped or tricked by fancy “sales speak” or tired old pre-closing and closing techniques. Do you think for a moment that a prospective buyer of a $1.5 million dollar home hasn't participated in some fancy sales training program in his or her own career? Most certainly they know all the tried-and-true gimmicks out there.

How do you know if your prospects have some reservations about what they are hearing from your sales pitch? Here are some warning signals:

They seem aloof or disinterested. They are not engaged in the conversation with you about the amenities, benefits, and features of your custom home.

They frequently object to the price. This can be a smoke screen when a customer is feeling distrustful or uncertain.

They do not return phone calls, are late for appointments, or do not show up at all. They don't make small decisions that you have asked them to make regarding selections, investigating financing, or interviewing your references.

There is no discussion of the next step. A prospect is not a serious buyer until he or she talks about financing, selling their existing house, or how long the project will take.

To take a fresh approach to home sales, focus on why people buy. Customers buy for numerous reasons, and it can be tricky to try to figure out exactly why someone is interested in your new home. To do this, let's go inside the mind of a prospect who is considering one of your homes. If he or she is having any of these thoughts you are well on your way to closing the deal:

“I see the value.” The home seems fairly priced.

“I understand what I am buying.” The buyer is familiar with your amenities, features, products, financing, warranty and the intrinsic benefits of your home. He or she understands the home building process and how your company will make that happen.

“I like this company better than its competitors.” The customer must be able to distinguish what separates you from the competition and then attach value to that difference.

“I see how this fits my needs.” There must be a direct correlation between what the client needs and what you have to offer, such as more space, entertainment options, or resale value.

“I like my salesperson.” So much of the sale process revolves around your ability to create genuine rapport with the prospect. Your ability to be a helpful resource is the most important factor in many customers' minds.

The only way to know if you are satisfying your prospect's unspoken needs is to ask direct questions and listen intently to the answers. If you want to increase your sales, you don't need to know how to sell as much as you need to know why they buy.—Paul Montelongo has been a builder for more than 23 years and is a nationally recognized speaker and consultant to the construction industry. Visit Paul at www.contractorofchoice.com.