1. Is the Party Over?

2. (Isn’t this a rhetorical question?) But…must this be the curtain call? Is there a way to avoid exiting the stage?

3. Let’s try to find some blue sky!

4. Just how did we get into this mess in the first place? Believing that a good market would last forever Believing that a good market would last forever Forgetting that it’s still location, location, location Forgetting that it’s still location, location, location Failure to differentiate our product from the competition Failure to differentiate our product from the competition Not realizing the changes that were occurring in buyer media habits: you don’t have a sales problem, you have a traffic problem! Not realizing the changes that were occurring in buyer media habits: you don’t have a sales problem, you have a traffic problem! Not realizing we’ve become a 1:1 society Not realizing we’ve become a 1:1 society Not realizing that we’re now in an experience economy Not realizing that we’re now in an experience economy

5. Now how do we get out of this mess? A good market doesn’t last forever A good market doesn’t last forever –New competition (including resales) has “re- priced” your product for you –Your first loss is your best loss! –Try non-price incentives first (closing costs; financing assistance; allowances for uninstalled options). Discount prices as your last resort – but if you have to – DO IT! –Differentiate the deal between your standing inventory and a “new build”

6. Now how do we get out of this mess? It’s location, location, location… It’s location, location, location… –Marginal locations always suffer first in a down market. If you’re buying now, you can’t afford the wrong location. If you’re already in one…see the previous slide! –The value of place-making –If you can’t lead, follow (just follow the right people)

8. Now how do we get out of this mess? Failure to differentiate yourself from the competition Failure to differentiate yourself from the competition –Commoditization can only be won by lowest price! –Design rules! What is your “plus one”? Are you designing for women? –Train your salespeople to understand your point of differentiation

10. www.herhome.com

11. Now how do we get out of this mess? Not recognizing changes that were occurring in buyer media habits… Not recognizing changes that were occurring in buyer media habits… –50% of my advertising dollar is being wasted…I just don’t know which 50%!! –Traditional media is often underperforming –Don’t let the real estate company pay for your advertising! –Professional photography more than pays for itself! –It’s all about the Internet (or so say 80% + of home buyers!) –Is the future podcasting?.tv sites?

15. Now how do we get out of this mess? Not realizing the importance of 1:1 marketing… Not realizing the importance of 1:1 marketing… –You can survive, and especially thrive, without a good data base! –Understanding buying motivations and then tailoring your follow-up to those motivators –Direct mail can now be personalized!! –How do your processes add value to the customer’s experience?

19. Now how do we get out of this mess? Not recognizing that we’re now in an experience economy… Not recognizing that we’re now in an experience economy… –To paraphrase Bill Clinton, “It’s the experience, stupid!” –We’re being benchmarked against Nordstrom, Starbucks and Home Depot! What is the customer’s experience like in visiting your sales center? –The value of PR (event marketing) versus advertising (grand openings, broker events, sponsorships)

21. Don’t just hope and pray that the cycle “turns up” soon… …make something happen today!