Launching a Residential Project in a Slow Market? (How to)
Now I know this doesn’t apply to everywhere — but over the last few months, we (at Spark) have seen a lot of projects being cancelled, delayed or shift purpose completely. So based on what I’ve seen, I thought I’d put together a list of things to consider when launching a project in a slow market. This also includes strategies I’ve seen that have helped turn slow markets into hot markets.
1) Ditch the Traditional Sales Centre
Over the last several years, I’ve seen the buying process shift to be more modular and flexible. Traditional brick and mortar sales centres still have their place, but a lot of the time, aren’t where the deal ends up happening — they are more of a confirmation. The presentation, and ‘sale’ usually occur in a dynamic that suits the buyer, which could be anywhere.
That being said, tools that empower your sales team and your broker network to sell anywhere, are what you need to focus on. Lately I’ve been working a lot with a company called Blackline out of Toronto, which coins itself as the ‘new digital sales centre’. And I would agree.
2) Clean up Old Databases
Often times, a lot of ‘deals’ can be found, simply by organizing and digging through existing lead from past projects. When starting a new project, the most expensive thing you can do is try to generate ‘brand new’ buyers. If you have sold projects before, chances are those buyers that didn’t purchase, are still buyers that might.
3) Software, Software, Software
The best thing you can to do maximize sales, efficiency and reach, is good (industry specific) software. Now I might be slightly biased (since I own Spark), but like Spark, for a small monthly cost, you give yourself access to all the tools necessary to do the above — integrate with new technologies, sift through old databases — and empower both you and your team.
This also includes mobility, as being able to access your data from anywhere and act on the spot, is key when markets are slow.
4) Portals
Now you’re probably thinking…. WHAT is a portal? Well, a portal is what, at some point, is going to run your entire sales/marketing business for new development. Like we talked about above, deals happen anywhere, and furthermore, deals can happen FROM anywhere. There are a plethora of real estate portals that help promote projects both locally and overseas, and most of them can help do it for a faction of your traditional marketing budget. Of course this depends on the type of product you’re selling, but you’d be surprised, buyers can show-up where you least expect them.
5) Partner
I know this might sound slightly counterintuitive when you’ve spent months trying to pitch a developer to let you sell their project — or if you’re a developer who wants to keep your sales and marketing in-house. But I’ve seen it happen more and more. Share a little to gain a lot. Whether it’s an outside brokerage, another marketing firm or a brand that aligns with your product,
In keeping this list to only 5 things, I’ve hopefully made it light and concise. I’m sure many of you might have questions like ‘what portals should I market on?’ or ‘how do I clean up an old database?’. And if you do, please feel free to shoot me an email or COMMENT below and I’ll make sure to respond as best I can.
simeon@spark.re
