Price is Always Important, But Not The Only Thing!

Especially in challenging economic times, people seriously consider how much things cost and what the price is. When I was the Chief Operating Officer of a natural products manufacturer years ago, I remember that our price point was a serious consideration, in order to best position our products optimally in relation to others.

Those seeking representation by a Real Estate professional, should not over - focus merely on the commissions, and fees, but pay attention to factors, such as service, quality advice, obtaining the best deal, etc! Always think first about what the price, of only looking at perceived costs, rather than the bigger issues!
 
However, while pricing and costs are important factors, when it comes to conferences and conventions, a far more important factor is almost always perceived value. In my three decades of hotel negotiations, event planning, and conference and convention planning and operations, I have witnessed repeatedly, situations where organizations over-emphasized only the price that participants would pay. In doing so, they often neglected creating a program and agenda that would attract attendees. Sometimes even more importantly, these organizations did not sufficiently emphasize the attendee's conference experience, and when that attendee went "back home," rather than being the organization's best ambassador, he reported a less than stellar experience.

The almost laughable, if it were not so incredibly short-sighted, part of this is that the amount of "cost savings" that these organizers implemented, had little impact on attracting significantly more attendance. However, at the same time, this reduction created financial risk for the organization and an inability to provide a superior attendee experience.Organizers must recognize that a small price decrease in the fee for attending a conference often has little real impact on attendance. If it works at all, it only works in local events, where there are few expenses incurred by attendees besides the registration fee. However, many conferences require travel and hotel costs, and those costs often "dwarf" the registration fees.

In addition, if an organization is going to lower its registration fee, by how much will they reduce it? How much is a significant enough reduction to encourage additional attendance? What will be the overall impact on what conference organizers can do, when revenues are reduced? I have heard numerous conference and convention organizers state that the reduced revenues will be offset by increased attendance. However, what these organizers often under-estimate is the true cost to the conference per attendee. If it takes more attendees to generate the same revenue, and registration fees are reduced by, for example ten percent, how much will attendance have to go up to offset the drop in revenue combined by the true cost per attendee? In many cases, a ten percent registration fee reduction will require close to a twenty percent increase in attendance and registrations.
Unfortunately, like many things done by many organizations, their conferences are often run by well-meaning individuals, who are, nevertheless, less than professional conference and convention coordinators. Organizations must analyze both the short term and longer term ramifications of addressing solely the registration fee issue, without, at the same time, analyzing the perceived value aspect. It is essential that organizers fully understand all aspects involved, including, especially, understanding their niche or target market.

Price matters, but it is not the only factor! Quality, service, and the bigger picture, are essential considerations! 

Why Buying & Selling A Home, Is Often Confusing?

Several decades ago, the home buying and selling procedures seemed far less complicated. Nearly everyone bought and so homes through Realtors, who generally all charged the same six percent commission. There was predominantly one type of mortgage (fixed rate), most people put at least twenty percent down, and almost all mortgages charged the same rate (for many years, in many parts of the country, this was 8 1/2%). Houses, in most cases increased in value based on the inflation rate, and whatever improvements were made to the house, as well as its condition and location. Houses were sold with "For Sale" signs, and newspaper ads, as well as through "Open Houses." It seemed like, in most parts of the country, almost all agents were Seller's Agents (meaning they represented the seller in the transaction), even if they were selling the house to their customer. Obviously, houses were far less expensive, but average incomes were also substantially lower in most cases. Home ownership certainly appeared to be part of the "American Dream.

Today the procedure is far different. Houses are predominantly promoted via the internet, with Realtors involved in most sales, but with a far larger number of "For Sale By Owner" (FSBO) transactions taking place. While there are still Open Houses, in many areas even those are by appointment only, because of the increased concern with security in today's world. Before the mortgage fiasco that occurred a few years ago, there were many different types of mortgages, including fixed rate, and a variety of variable rate loans. Until the 2008 mortgage and banking crisis, there was far too much leniency in deciding who to give loans to, and it was not at all uncommon for someone to get a little down payment, or nothing down mortgage. Many home appraisers were appraising homes for far more than they ended up being worth. Which, obviously, when the economy suffered, and the real estate market reacted dramatically negatively, caused many homes to have mortgages larger than their values. This ended up with cash crunches, which led to many people losing their homes to foreclosures or short sales (selling a house for less than the amount remaining on the market). This then led to banks trying to eventually resell many of these properties, which then further exacerbated the drop in prices in those areas.

Since the banking crisis, and the government bailout, it has become far more challenging to get a mortgage. Banks have dramatically reviewed their home appraisal systems, which has led to individuals only qualifying for far less mortgage monies. In addition, banks began nearly arbitrarily reducing credit card credit lines, which because of the way credit scores are calculated, lowered many individuals credit scores, through no action of their own. Then, of course, banks began requiring higher and higher credit scores to qualify for a mortgage, so it is obvious how that further complicated manners. Therefore, even though mortgage rates have remained at or near record lows, for a considerable period of time, the process is often a complex and confusing one, and is another reason, one's selection of a real estate professional, is an even more significant one.

In addition, many sellers still expected to receive the same price people received at the height of the market, while at the same time, many buyers had somewhat unrealistic expectations as to how low they could buy a house for. Although housing prices have rebounded, there seems to be seller's or buyer's market cycles, and the sellers and buyers are often somewhat confused!

My advice is that the first thing is that both buyers and sellers must become more realistic, so that they can come to some fair meeting of the minds. Next, banks should be far more careful than they were, but far more reasonable than they are now. America needs a robust housing market, because the worst possible scenario would be if large numbers of Americans begin to feel that home ownership is no longer part of their version of the American dream.

How To Master Your Presentation?

How often have you been called upon to give, or been in a situation where there has been the need for you to get up in front of a group of people, and give some sort of presentation? Studies show that a large percentage of individuals become nervous, queezy and uneasy when this occurs, often feeling considerably out of their comfort zone. Unfortunately, this form of oral communications has often been largely either ignored or paid little attention to, and because of that, many presentations and presenters present an atmosphere of discomfort, boredom, and somewhat of a feeling of "why did I bother attending this," amongst attendees. Like most acquired skills, learning to, and actually giving a quality presentation requires dedication, commitment and an understanding of the process and the requirements/ needs. Whether this is a presentation before a large, intermediate, or small group, or even a one - on - one presentation, the following are necessities:

1. You'll rarely give a consistently quality presentation until, and unless, you thoroughly are prepared. This presentation means determining the goal of the presentation (i.e. what you want the attendees to walk away with), whether or not there is a need for accompanying visuals, doing your research and homework, understanding the group and its dynamics, etc.

2. Once you've formulated your information and materials, practice your presentation, and rehearse. This rehearsal should enhance your comfort zone, and anticipate questions and concerns that might be asked by the attendees.

3. Just like actors rehearsing for a new show, an effective rehearsal is never a one - shot event. The procedure must be repeated until your level of comfort with, and knowledge of, the materials, is nearly second - nature, and automatic.

4. Review your content in detail. Are you providing too little, too much, or just the right amount of information? Is the group that is attending prepared for the information you are giving? Will they welcome, or close their minds to new information, ideas and alternatives?

5. Are you comfortable going in front of a group? Are you so uncomfortable that your nervousness will create an impediment to a quality presentation? Rehearse in front of a mirror, look at your body language, continuously change the inflection and tone quality of your voice, and remember to speak more slowly than you feel you need to (because invariably nervous speakers rush). One's confidence is an essential of a quality performance!

6. Finally, consider your delivery, your performance, and whether or not you are engaging the group in an interactive manner. When one gets the audience more involved, it enhances the bond and thus the attention that the crowd will give you.

There is no one - step, easy procedure for enhancing your presentation skills. However, paying attention and being consistent, and thus using these basic six steps, helps to put you in the best scenario.

Why Strategic Plans Are Important?

While many organizations have heard of strategic planning, and even claim to strategically plan, few actually do so effectively. Many organizations and their leaders discuss strategic planning as if it is some sort of panacea for "fixing" the organization. That expression is almost as misused as "getting to the next level." It is somewhat amazing that few organizations, and few leaders seem to comprehend that strategic planning must be an ongoing process, if it is to be an effective use of time. Otherwise, what many organizations refer to as strategic planning ends up being little more than an exercise in philosophy and oration.

The first step in effective strategic planning is to properly identify where an organization is at presently, and how it got there. What is the history of the organization, and how does that and the organization's mission impact its planning? How can the organization evolve to improve, while maintaining its reason for being? Strategic planners must carefully understand the ramifications of its actions, or conversely, what the impact of not acting might be.

This process must identify both the strengths and weaknesses of the organization, as well as the reasons and causes for each. All too often, so-called strategic planners inaccurately identify either strengths or weaknesses, or both, and then make decisions or recommendations based on false or faulty premises. This is often seen, especially on the weaknesses sign, when an organization is facing a challenge in a specific area, and often oversimplifies, misinterprets, or misunderstands the reason for the obstactle. When planning begins based on inaccurate premises, the plan is doomed from the onset.

Strategic planners must consider all alternatives in their deliberations. They must consider factors such as short-term, intermediate-term and long-term impacts, ramifications, costs both in terms of financial as well as personnel related. Costs include not only direct costs, but also indirect costs, such as the wastes and excesses. Planners must consider multiple alternatives, and weigh all relevant factors in analyzing ideas.

Strategic planning necessitates entering the process with an open mind, and considering alternatives. Where many organizations drop the ball, however, is that after they expend considerable time, energy and other resources in the process, they do not develop an action plan to assure the timely achievement of the plan. The strategic planning process applies to not - for - profit organizations, for - profit corporations, government entities, civic groups, as well as self - employed business people, such as real estate professionals and investment advisers. Without a strategic plan, your action plan, and inevitable effectiveness, is limited and restricted in scope, and impact!

Customers versus Clients?

Many people commonly interchange the words "customer" and "client" in their every day conversational usage. While there are, in fact, a number of similarities, there are also quite a few differences. These differentiations come much more often in service industries than in those where a product is sold retail, because, in retail sales, nearly everyone, with only a very few exceptions, are customers.

A customer is someone who either buys a product from you, or uses your services, without specifically contracting in any type of exclusive way. On the other hand, when one enters into a client relationship, there is far more of an obligation on both parties part.

This differentiation is most evident when it comes to the real estate process. A homeowner, who lists his house for sale with a real estate broker, enters into a client relationship. The homeowner, for a specific period of time, is contractually bound to that broker, in terms of all aspects of the sales procedure, except of course, the final decision whether to accept an offer, which always remains the homeowners option. The broker is obliged in a number of specific ways, as specified by that state's specific real estate laws and regulations. In most cases, a broker and his agents, owe the client a fiduciary responsibility, which includes confidentiality (except in the case of any material misstatement or other illegal or immoral situation), making best efforts on the client's behalf, and doing the best to secure the best possible offer and negotiating on the owner's behalf. The broker owes his entire loyalty to the owner during this entire procedure, and is forbidden to do anything which is not in his client's best interests.

When someone uses the services of a Realtor in the real estate buying process, most states require some specific type of Agency Agreement. A buyer or potential buyer can have the agent serve either in a customer or client relationship. First, a buyer can decide if he wishes to use an agent as a Seller's or Buyer's Agent. A seller's agent owes his responsibility to the seller of the house, while a buyer's agent negotiates on behalf of the buyer. Obviously, in this latter scenario, the broker owes his allegiance to the buyer, and is expected to due necessary due diligence, as well as supply the potential buyer with all pertinent information that he may attain. This includes information about length on market, how negotiable the seller might be (while a seller's agent should be trying to maximize price received by homeowner, the buyer's agent tries to obtain the best possible "deal" for the buyer.), and other important factors that might impact the buyer. A person desiring this arrangement can still be a customer, but generally will enter into a client relationship, so that the broker puts forth maximum effort on his behalf.

While in both scenarios, there should be no material misstatements ever made, obviously the degree and type of effort put forth will differ. It is important for the public to understand the distinction.

5 Componets of Effective Negotiating

Regardless of which aspects or activities we are involved in, whether it involves our personal, business, or self - confidence impacting scenarios, we often end up in some sort of negotiations or negotiating activity/ aspect. Effective negotiations involve conceptualizing needs and focusing on solutions. In most cases, negotiating is dependent on these five components: 1. Do one's homework carefully and thoroughly; 2. Effectively listen; 3. Absolute integrity and transparency; 4. An ability and willingness to prioritize and inform one's adversary what our needs are; and 5. The inevitable achievement of a significant meeting of the minds. When one approaches negotiating as a cooperative rather than adversarial activity, the ability to negotiate a meaningful agreement is potentiated exponentially.

1. We often hear someone discuss the need to do one's homework, but what does that actually mean? In negotiating, it means coming to the table completely prepared and "armed" with the necessary details and reasons for one's position. However, it also requires studying the needs of the opposite side, and understanding their strengths and weaknesses, financial implications, and needs and potential areas of flexibility.

2. There is a big difference between simply hearing, and effective listening. It is a physical condition to have the ability to hear, but it is a needed (but acquired) skill to become an effective listener. To do so means avoiding the tendency to interrupt and dominate a forum with one's own rhetoric, and focus on listening and posing questions that gather information while positively developing relationships. It also creates an opportunity to further one's understanding of the other side's needs and priorities.

3. A great negotiator must approach this process with absolute integrity, understanding that it is better to develop a relationship based on trust and honor, rather than on mistrust or opposition. Many have attempted to mislead an adversary during a negotiation, and while this at times may seem to have temporary positive results, in the end, it almost always destroys the essential fiber of producing a productive result.

4. Focus on the priorities and needs, and clearly inform the other side of what you are looking for. In many cases, when both sides are willing to look at alternatives, they can come out with a mutually beneficial result.

5. However, the goal of any negotiation, must be to come up with a meeting of the minds, where both sides feel they can walk away from the table, believing they have come up with a fair and equitable solution. This means using a win - win emphasis, and never approaching a negotiation with the objective of defeating an opponent.

Do you want to be an effective negotiator? If so, focus on these five components, work on the necessary skills, and maintain your objectivity and integrity.

How Is Your Judgment?

How do you define judgment, and what factors do you consider most indicative and telling? What have you done to develop your wisdom, ability to analyze and interpret, judge situations, individuals, procedures, techniques and ideas? Do you enjoy being the decision maker, or would you prefer to defer that to others, and simply be a follower? Do you prefer to be a leader, trusting that you are more capable of making the best decisions, or do you doubt your own abilities and judgment? Do you judge situations and understand the possible ramifications and alternatives? Do you prefer to be proactive, or are you merely reactive? Do you plan sufficiently so that you can make decisions based on facts and reasoning, or do you wait, often procrastinating, and putting off making a judgment until you have to?

1. Judgment can either be good, bad, or somewhere in between. However, when someone simply waits and procrastinates, that is almost always an indication of far less than stellar judgment. Procrastination is generally an indication of either insecurity or fear. It takes courage, self confidence, and personal motivation to make a decision, but it also requires a commitment to training, learning, self improvement, and the desire to be the best that you can be, to actually show judgment.

2. Judgment does not mean that you must be the most intellectually gifted, although no doubt a certain level of intellect generally enhances one's judgment. However, often those with the highest IQ, and the most schooling and education, do not exhibit the greatest judgment. Great judgment also requires certain tangible, as well as certain intangible qualities. The tangible assets include learning, experience, focus, desire and motivation, as well as commitment. The intangible characteristics come from one's viable vision, and how that translates to actual goals, as well as the motivation to persist and persevere, and the courage to make well thought out decisions, when others often defer. Judgment is a combination of numerous characteristics, disciplines, beliefs, ideals, etc. However, for a judgment to be pure and positive, it also requires absolute integrity.

There has never been a truly productive individual who did not develop a methodology to enhance his abilities and judgment. It all begins with both knowing, as well as liking ones self. Judgment comes from someone being comfortable with his abilities, confident in his beliefs, and willing to openly examine any and all alternatives that might make him better.