With over 25 years of selling into multifamily I have found that there are four areas of focus that will help sellers be most successful .
Many suppliers will already know these and use them every day . Some Suppliers will discover these through this article . Some Suppliers will be reminded and will re-commit to these . All will be setting up for success . When you know how your product or service relates to each of these , you can frame your sales message , approach , planning and presentation to be effective and efficient .
Customers always appreciate when a supplier is being effective and efficient which demonstrates respect for their time and your expertise of the situation . When you are performing in one of these four areas , be sure to take credit for the benefit you are bringing to the property . Point it out and be proud of it .
These basics are universal to any product or service and can also be reviewed by the operators and owners to help make purchasing decisions .
1 . Produce revenue
Monetize the impact for your customer . Tell the customer where and how they will be impacted by your product or service using these four areas . These may seem simple . Ignoring these can be detrimental . Implementing these will lead to success .
Producing revenue for a property is the best situation you can hope for when you are a supplier to multifamily . Boosting the revenue of a property will nearly always receive attention . Do not forget the other three basics when you are helping a property produce revenue . If you ignore the other three , you may undermine the revenue opportunity . Be sure to quantify the effect on NOI . If you are proposing a revenue increase and there are additional expenses or work the revenue might not be worth the effort .
2 . Save Time
Saving time is a benefit to every customer . When you show a customer how you save time , you will gain their attention . This is also where relationship selling takes place . Customers appreciate relationships because the relationship saves them time and expedites the purchasing process . This is also where being a subject matter expert will be most effective . Be sure you are not the person that is viewed as wasting time . Be ready to get to the point and relate to the needs of the property . When you are proposing a time savings for a property , recommend where they can reinvest and leverage the new- found time .
3 . Defer or Eliminate Expenses
When you show a property how you help eliminate or defer expense , you will have a direct effect on their NOI . The most effective presentation on this is when it is specifically relatable to the industry or the property . Be sure to be specific . Present the situation to show what to expect and the direct savings . Consider rolling the savings up to a quarterly or annual performance to magnify the effect . Many suppliers can or could use a total cost of ownership perspective to show how a product or service may have additional savings with quality , warranty , service , efficiency , etc . Again , be sure you are prepared to show the total cost of ownership when it fits with your product or service .
4 . Improve Resident Retention or Satisfaction
Resident turns are expensive for properties . Estimates range from $ 1000 to $ 5000 in direct cost to turn an apartment . Certainly , the cost can grow with lengthy vacancy and other accumulated soft costs . It has been presented that if an apartment community reduced turnovers by just one per month , savings would be more than $ 20,000 in annual turnover expenses and would free up significant hours for maintenance and administration . It is obvious that resident retention and resident satisfaction have a direct effect on costs . It is not a stretch to say that satisfied residents are less problematic , and they are more likely to renew .
As you plan your days and sales contacts , be sure to know how each of these four will impact the customer . Be well prepared to talk about each . When you are unsure about the impact , tell your customer you would like to ask some questions to find how each of these might impact the customer . If you happen to be in a position where you cannot currently impact a property , consider postponing the contact . You will also notice that you are talking with the property about your products and services and their needs and not competitors , sports , the weather , etc . When you as supplier can show a property how to increase revenue , save time , reduce expense or to reduce resident turnover , you will be successful and viewed as a professional in the multifamily industry .
Ed Schell is the Vice President of Field Sales for ControlByNet . He is a member of the AAMD Hall of Fame www . aamdhq . org FEBRUARY 2022 TRENDS | 37