CREATING A SALES CREATING A SALES CULTURE…CULTURE…

Tron JordheimTron Jordheim, PhoneSmart, PhoneSmart

How to transform your How to transform your businessbusiness

from a property management from a property management firmfirm

Into…Into…

A Sales OrganizationA Sales Organization

What do I know about this?What do I know about this?

• I build sales and marketing I build sales and marketing organizations organizations

What do I know about this?What do I know about this?

• PhoneSmart has written over PhoneSmart has written over 500,000 leads and reservations for 500,000 leads and reservations for its self-storage clientsits self-storage clients

Self Storage ain’t what it used to Self Storage ain’t what it used to be:be:

The evolution of self-storage:The evolution of self-storage:

• Construction:Construction: Build it, it made money. Build it, it made money.

• Real Estate:Real Estate: You also needed location. You also needed location.

• Operations:Operations: Oh, you had to run it right. Oh, you had to run it right.

Where is it now?Where is it now?

• Retail:Retail: It is all about the experience. It is all about the experience.

• Sales and marketing:Sales and marketing: You’ve got to get their You’ve got to get their attention and sell them your experience.attention and sell them your experience.

because…because…There are lots of choices out there… There are lots of choices out there… and money is tight for consumers.and money is tight for consumers.

Do you have less competitorsDo you have less competitors

or more competitors?or more competitors?

• Occupancy higher or lower?Occupancy higher or lower?

• Lease-up time increasing or decreasing?Lease-up time increasing or decreasing?

• Easier to rent or harder?Easier to rent or harder?

Supply and demand is upside Supply and demand is upside downdown

• Used to be demand outstripped Used to be demand outstripped supplysupply

• Now supply is plentyNow supply is plenty

The new realityThe new reality

Lower occupancies andLower occupancies and

Higher costs of acquisition require:Higher costs of acquisition require:

• More CustomersMore Customers

• Customers who stay longerCustomers who stay longer

• More revenue per customerMore revenue per customer

New RealityNew Reality

• We used to sell against non-useWe used to sell against non-use

• Now we sell against Now we sell against

CompetitorsCompetitors

Weak economyWeak economy

And Non-useAnd Non-use

How to create a sales How to create a sales cultureculture

• What is a culture?What is a culture?

• Shared valuesShared values

• Shared languageShared language

• Shared practicesShared practices

• Shared traditionsShared traditions

How do you know you are How do you know you are Canadian?Canadian?

• (you know you’re a redneck, if…)(you know you’re a redneck, if…)

How do you know you are How do you know you are Canadian?Canadian?

Shared valuesShared valuesShared languageShared languageShared practicesShared practicesShared traditionsShared traditions

How do you know you have a How do you know you have a sales culture?sales culture?

• Shared values:Shared values:

- Everyone you talk to is a buyer- Everyone you talk to is a buyer

- All your buyers come back for more- All your buyers come back for more

- All your buyers refer their friends and - All your buyers refer their friends and familyfamily

How do you know?How do you know?

• Shared language:Shared language:

- prospects- prospects

- conversion rates- conversion rates

- Closings- Closings

- Cost per sale- Cost per sale

How do you know?How do you know?

• Shared practices:Shared practices:

- Sales routines- Sales routines

- Customer service routines- Customer service routines

How do you know?How do you know?

• Shared traditions:Shared traditions:

Create the myths and storiesCreate the myths and stories

Why do sports fans make good Why do sports fans make good sales people?sales people?

• Because they can immerse Because they can immerse themselves in a culturethemselves in a culture

• They appreciate winningThey appreciate winning

• They don’t fret losingThey don’t fret losing

What can your sales culture What can your sales culture do?do?

* Create more leads* Create more leads

* Increase conversion rates* Increase conversion rates

* Cross sell* Cross sell

* Up sell* Up sell

* Re-sell* Re-sell

Create more leads?Create more leads?

• How about working the ones you already How about working the ones you already generate?generate?

• Missed Phone CallsMissed Phone Calls

• Unanswered internet inquiriesUnanswered internet inquiries

• Market better to current customersMarket better to current customers

• Market to your neighborsMarket to your neighbors

• Develop better skills and systemsDevelop better skills and systems

Systems and skillsSystems and skills

• Hire rightHire right

• Train rightTrain right

• Review and reinforceReview and reinforce

Hire rightHire right

• Who makes a good sales person?Who makes a good sales person?

• How do you test for that?How do you test for that?

What makes a good sales What makes a good sales person?person?

• A mission to help peopleA mission to help people

• Good listeningGood listening

• Good questioningGood questioning

• PatiencePatience

• PerseverancePerseverance

• SelflessnessSelflessness

• An unwillingness to take NO for an An unwillingness to take NO for an answeranswer

Give the right people a Give the right people a system!system!

• Structure Structure

• TechniqueTechnique

• Expectations Expectations

The rule of thirds for self-The rule of thirds for self-storage storage

• 1. Some will rent anyway unless you chase 1. Some will rent anyway unless you chase them offthem off

• 2. Some won’t rent in any case because they 2. Some won’t rent in any case because they need a unit in two years… or have no moneyneed a unit in two years… or have no money

• 3. Some might rent if you help them talk 3. Some might rent if you help them talk themselves into itthemselves into it

Sales skills and Sales skills and Lead management systems Lead management systems come firstcome first

Then you can try to drive:Then you can try to drive:

• More phone callsMore phone calls

• More internet viewsMore internet views

• More drive-by trafficMore drive-by traffic

Work on conversion ratesWork on conversion rates

Two factors:Two factors:

• Timing…move at the customer’s Timing…move at the customer’s pacepace

• Sales skill… move correctlySales skill… move correctly

Selling organizations hire the Selling organizations hire the right people and invest in right people and invest in training.training.

• Get a selection process in place and then:Get a selection process in place and then:

• Practice makes perfectPractice makes perfect

andand

• Practice makes profitPractice makes profit

Would you let your kids enter a Would you let your kids enter a sporting event without:sporting event without:

• Being well suited for the sport?Being well suited for the sport?

• training?training?

• Preparation?Preparation?

• Practice?Practice?

PhoneSmart’s Self Storage Selling PhoneSmart’s Self Storage Selling SystemSystem

• Rule of thirds: How do you handle call?Rule of thirds: How do you handle call?

• Price StallPrice Stall

• Five AgreementsFive Agreements

• Create UrgencyCreate Urgency

• Ask For the RentalAsk For the Rental

• Find out MoreFind out More

• Ask for the Rental againAsk for the Rental again

A glimpse into our selling A glimpse into our selling systemsystem

• So you understand it takes:So you understand it takes:

• ThoughtThought

• TimeTime

• EffortEffort

Price StallPrice Stall

• How much is…?How much is…?

• Really means:Really means:““Please tell me why your place is a Please tell me why your place is a

good value?”good value?”

……understand the meaning behind understand the meaning behind what your prospects say what your prospects say

Five AgreementsFive Agreements

• Time FrameTime Frame

• LocationLocation

• AmenitiesAmenities

• SizeSize

• PricePrice

• Understand what drives the customer’sUnderstand what drives the customer’s

inner dialogueinner dialogue

Create UrgencyCreate Urgency

• Limited AvailabilityLimited Availability

• Get one thing off your listGet one thing off your list

• Save time and reduce hassleSave time and reduce hassle

Know how to help people move from Know how to help people move from thinking about to doingthinking about to doing

Ask for the RentalAsk for the Rental

• Alternate choiceAlternate choice

• Straight QuestionStraight Question

• Order BlankOrder Blank

• Assume the saleAssume the sale

Find out moreFind out more

• If they did not rent when you asked If they did not rent when you asked the first time…why not?the first time…why not?

• Sticker shockSticker shock

• Shop aroundShop around

• SpouseSpouse

• Not readyNot ready

Ask for the rental againAsk for the rental again

• Your choice is a good oneYour choice is a good one

• You personal assurancesYou personal assurances

• You can move them in nowYou can move them in now

Track your numbersTrack your numbers

What is yourWhat is your

• On-base percentage?On-base percentage?

• Earned run average?Earned run average?

• Average with runners in scoring Average with runners in scoring position?position?

Learn to ask for the saleLearn to ask for the sale

• QualifyQualify

• Offer choicesOffer choices

• Ask for the rentalAsk for the rental

• If you don’t ask you seem like you don’t If you don’t ask you seem like you don’t carecare

Get the conversation goingGet the conversation going

• Are you moving or just getting some Are you moving or just getting some things organized?things organized?

• Listen for the clues you need to show Listen for the clues you need to show your place is the right placeyour place is the right place

• Listen for the buying signsListen for the buying signs

Customers should say to Customers should say to themselvesthemselves

• Nice peopleNice people

• Nice placeNice place

• Sounds like they have a size I could Sounds like they have a size I could useuse

• I guess the money’s not too badI guess the money’s not too bad

• I don’t feel like spending all day on thisI don’t feel like spending all day on this

• OK, I’ll rent hereOK, I’ll rent here

Don’t let them say to Don’t let them say to themselvesthemselves

• RudeRude

• UnhelpfulUnhelpful

• Unsure of themselvesUnsure of themselves

• Embarrassed about how damn expensive Embarrassed about how damn expensive it isit is

• Won’t listenWon’t listen

• I’m outta hereI’m outta here

Help direct their inner Help direct their inner dialoguedialogue

• With good questionsWith good questions

It sounds like I have a couple It sounds like I have a couple of sizes that might work for of sizes that might work for you…you…• ……which would you prefer?which would you prefer?• ……which unit do you think would fit which unit do you think would fit

you better?you better?• ……when would you like to come in when would you like to come in

and pick your unit?and pick your unit?• ……how about I hold both of them for how about I hold both of them for

you until the weekend, what was you until the weekend, what was your last name?your last name?

If you don’t ask them to rentIf you don’t ask them to rent

• They think you don’t care if they do They think you don’t care if they do

or if they don’t.or if they don’t.

Impact of lead management Impact of lead management and sales proficiency is hugeand sales proficiency is huge

• How many points do you have to How many points do you have to move conversion rates to create move conversion rates to create serious money?serious money?

What is the value of each What is the value of each additional new rental?additional new rental?

• Times rental revenueTimes rental revenue

• Time non-rental revenueTime non-rental revenue

• Times referralsTimes referrals

• Times the cap rateTimes the cap rate

Cross SellCross Sell

Whatever you need, I have something Whatever you need, I have something else that will work well with it.else that will work well with it.

• Do you want fries with that?Do you want fries with that?

• I can add a salad to your entrée for I can add a salad to your entrée for only $3.95.only $3.95.

What can you cross sell?What can you cross sell?

• LocksLocks

• BoxesBoxes

• SuppliesSupplies

• InsuranceInsurance

• Truck rentalsTruck rentals

• Mail box rentalMail box rental

• You name it…You name it…

Up SellUp Sell

Whatever you need, I have an upgrade Whatever you need, I have an upgrade that will give you more value.that will give you more value.

• Can I super-size that for 99 cents?Can I super-size that for 99 cents?

• The luxury car is only $14.00 a day The luxury car is only $14.00 a day more and has XM radio, would you like more and has XM radio, would you like that?that?

What can you up-sell?What can you up-sell?

• Standard to climate controlledStandard to climate controlled

• Larger unit for easier organizationLarger unit for easier organization

• 24 hour access for added convenience24 hour access for added convenience

• First floor instead of upstairsFirst floor instead of upstairs

• Drive-up instead of insideDrive-up instead of inside

• Closer to elevator instead of furtherCloser to elevator instead of further

• You name it…You name it…

How do you do it?How do you do it?

• Master the scriptMaster the script

• Phrase by phrasePhrase by phrase

• Question by questionQuestion by question

• Practice and role-playPractice and role-play

Don’t miss the opportunitiesDon’t miss the opportunities

• Most of you never ask!Most of you never ask!

They need supplies or a They need supplies or a trucktruck

• Sure I can help you with that…Sure I can help you with that…

……and what size storage unit do you and what size storage unit do you think you’ll need?think you’ll need?

Sell BoxesSell Boxes

• What size boxes do you need today?What size boxes do you need today?

Sell LocksSell Locks

• Which lock would you prefer, our Which lock would you prefer, our good, better or best?good, better or best?

Sell Renter’s InsuranceSell Renter’s Insurance

• Do you want the minimum or Do you want the minimum or maximum coverage on your renter’s maximum coverage on your renter’s insurance?insurance?

Sell the Truck RentalSell the Truck Rental

• How are you planning on getting How are you planning on getting your things here?your things here?

Up sell = “Would you Up sell = “Would you prefer…”prefer…”• Standard or climate controlled?Standard or climate controlled?

• A larger unit for easier organization?A larger unit for easier organization?

• 24 hour access for added convenience?24 hour access for added convenience?

• First floor or upstairs?First floor or upstairs?

• Drive-up or inside access?Drive-up or inside access?

• Closer to elevator?Closer to elevator?

……and paint a picture of the benefit…and paint a picture of the benefit…

Re-SellRe-Sell

• Every contact is an opportunity to Every contact is an opportunity to extend a stayextend a stay

• Every issue is an opportunity to show Every issue is an opportunity to show why you are a good place to storewhy you are a good place to store

What would happen to your What would happen to your financial picture iffinancial picture if

• You extended average lengths of You extended average lengths of stay by only one month?stay by only one month?

Customer management is Customer management is pain managementpain management

• Are you the cause or the cure?Are you the cause or the cure?

The smallest pain winsThe smallest pain wins

• Is it a bigger pain to move out or pay Is it a bigger pain to move out or pay the rent?the rent?

• Is it a bigger pain to deal with you or Is it a bigger pain to deal with you or to move out?to move out?

The benefits of a sales The benefits of a sales cultureculture

More leads and better conversion ratesMore leads and better conversion rates

More revenue from non-rent sourcesMore revenue from non-rent sources

Longer length of staysLonger length of stays

How do you get there?How do you get there?

• Create your sales culture nowCreate your sales culture now

• It is better to have an incomplete and It is better to have an incomplete and immature sales culture than none at immature sales culture than none at all!all!

This presentation is available atThis presentation is available at

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