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May 6, 2009
Volume 10 - Number 18
Streamlining the Business of Commercial Real Estate
In This Issue
Watch Your Mouth
Sales/Marketing Tip
Hot Deals/Leads
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TOP OF THE WEEK TO YOU!
(by realwired! CEO, Brenda Dohring)BDH Photo
 
Top of the Week to You! is designed to offer the inside scoop and latest of what's important in the world of technology as it relates to the commercial real estate industry.
Watch Your Mouth
Article contributed by:
Jeff Hicks, President, The Dohring Group

Did your mother teach you to always watch what you say?  Then why do business people refer almost total strangers?  Let's say I've met a commercial real estate attorney at a random Chamber of Commerce event.  The assumption is we met, we talked for perhaps two minutes, and as such, provided the basis of a sound referral. 

The good news is he probably is not a serial killer. However, the reality is you have no clue as to the competency of this person.  If you pass on this referral to a colleague, your reputation is at risk.  Do not give out referrals like Halloween candy.  Be selective or at a minimum be descriptive as to the extent of your ability to confirm the referral's quality. 

Referral marketing is arguably the most effective method of obtaining new, consistent customers.  According to Wikipedia, 80% of companies obtain 70% of their business through word-of-mouth from satisfied customers and contacts.  Said differently, 30% of their business came out of nowhere. 

After all, right off the top of your head, how many excellent referrals could you give your best friend?  Considering any trade, blue-collar or white-collar, I can only think of a handful.  I could give you hundreds of referrals if the criteria is solely the presence of their business card on my desk.   I know lots of venders that can show up late (if at all), do a marginal job, cut corners, complain as they are doing the job and then overcharge you for their stellar services.

That being said, I want to give you an example of an excellent referral.  It's a local architect in the Tampa Bay area.  Having personal experience working with this architect, I can give you a quick list of his attributes that you should find in any referral - honesty, excellent listening skills, great suggestions to resolve issues as they arise, good arbitration skills (in this case dealing with subs or government red tape), etal.  By the way, his name is Joe Belluccia of JVB Architects in Tampa, 813.258.3233, or www.jvbarch.com.

In the end, it's not really about price is it?  So watch what you say when it comes to referrals.  If you're not sure you should provide a referral, then don't.  Do what your mother said and "watch your mouth".
Sales/Marketing Tip
Bought and Paid For
I attend a lot of business functions: professional meetings, awards events, community groups, etc. Sometimes it's great fun. Sometimes it's dreadfully dull. It almost always involves eating chicken and listening to speakers of widely varying abilities from waxing eloquence to narcolepsy-inducing monotony. Topics range from the truly fascinating, through who-cares to take-me-off-the respirator. I have occasionally been assaulted with PowerPoint. I bear this burden/enjoy this experience because these events are great places to meet people and meeting people is what it's all about in sales.

It seems that many people share my sentiments. The calendar is loaded with opportunities to hob-nob with others. Many of these events attract hundreds of people. Business owners attend and they often send their people as well. Even people who are not, strictly speaking, salespeople can be found. Obviously, people want to meet people.
 
Since all this meeting is happening during the business day, my guess is that it has a business purpose. Surely, the attendees are "on the clock". That means that the company is paying real money for them to have lunch. In fact, they are paying twice: once in salary and once by incurring the cost of the event. This is expensive time, but well worth it if it results in new business.

This is where it gets confusing.

Here are some of the strange things that I have recently observed:

1. Large groups of employees from the same company sitting together. This is of course acceptable at an awards ceremony when the purpose is celebrating the team. It's downright weird anywhere else.

2. People who sit down and begin eating during the networking portion of the event.

3. People who come late or leave early, leaving themselves no time to meet anyone.

4. People whose conversation skills and demeanor send the message: "I couldn't care less about you".

All of the above defeat the purpose of sending people to events in the first place. Presumably the business incurs the expense of these excursions with the idea of flying the flag, making positive impressions, establishing new relationships and sometimes even setting appointments with qualified prospects.

Some salespeople (but fewer than one might imagine) know how to do these things. Almost none of the non-sales employees have a clue.

Everyone who ventures forth into the world of reworking represents the company that they work for. They make impressions for better or worse. Indeed, each and every employee has the opportunity to bird dog for new customers. Often the non-salespeople can be better at this than the salespeople because they are less threatening. In these difficult economic times it's a sin that these opportunities are so often wasted because people don't know that it's part of their job (it had better be) or they don't know how to do it. It's cheap and easy to teach non-salespeople to be effective networkers and feed your company a much needed supply of leads. They don't have to sell. All they have to do is sniff out opportunities and offer to make the appropriate introductions or identify the right people to call.
 
Since you're paying for them to represent your company at these events, the training you do to make them effective will likely be some of the best money you ever spend. 

Mark Fitzgerald, Sales Training Institute, Inc., Tampa, Florida provides this column weekly.  Mr. Fitzgerald provides both group and customized sales training for professionals and companies.  For more information, please contact him by telephone at 813-831-5555, via email at mark@saleskills.com or visit www.saleskills.com.

Hot Deals/Leads
Danice Stores, Inc. trades as Danice Stores at 21 locations throughout NJ and NY. The stores, offering discounted women's apparel, occupy spaces of 6,000 sq.ft. to 8,000 sq.ft. in downtown areas and power centers. Plans call for three openings throughout NY during the coming 18 months. Typical leases run 15 to 20 years. For more information, contact Barry Group, Danice Stores, Inc., 482 Fulton Street, Brooklyn, NY 11201.
 
Sonic Drive-In operates 3,500 locations nationwide.  The fast food restaurants occupy spaces of 1,500 sq.ft. to 1,800 sq.ft. in freestanding locations and pad sites.  Plans call for four openings throughout Orange and Los Angeles counties in CA during the coming 18 months, with representation by Coast to Coast Commercial.  Typical leases run 20 years.  Specific improvements are required.  Preferred cotenants include Target and Wal*Mart.  Major competitors include McDonald's, In-N-Out Burger and Carl's Jr.  A land area of 30,000 sq.ft. is required.  Patio dining, drive-in stalls and a drive-thru window are required.For more information, contact Brandon Wesselink or Devon Wesselink, Coast to Coast Commercial, 26400 La Alameda, Suite 106, Mission Viejo, CA 92691.

Bandana's Bar-B-Q operates at 27 locations throughout IA, IL and MO.  The restaurants, offering barbeque ribs, pork, chicken and turkey, occupy spaces of 5,000 sq.ft. to freestanding locations.  Plans call for 10 openings throughout IA, IL and IN during the coming 18 months.  Typical leases run five years.  Preferred demographics include a population of 125,000 within five miles earning $60,000 as the average household income.  The company is franchising.  For more information, contact Jay Mihulka, Bandana's Bar-B-Q, 15450 South Outer Forty, Suite 100, St. Louis, MO 63017.

Panchero's Franchise Corp. trades as Panchero's Mexican Grill at 53 locations throughout CO, FL, IA, IL, MD, MI, MN, NC, ND, NE, NJ, PA, SD, TX, VA and WI.  The Mexican restaurants occupy spaces of 2,200 sq.ft. to 2,400 sq.ft. in freestanding locations and lifestyle, power and strip centers.  Plans call for 10 openings throughout Phoenix, AZ; FL; NJ; VA and Washington, DC during the coming 18 months.  Typical leases run 10 years.  A vanilla shell and specific improvements are required.  Preferred cotenants include Target, Best Buy and big box retailers.  Preferred demographics include a population of 20,000 within two miles earning $55,000 as the average household income.  Major competitors include Chipotle and Qdoba Mexican Grill.  The company is franchising.For more information, contact Nanette Boyer, Panchero's Franchise Corp., 2475 Coral Court, Suite B, Coralville, IA 5224.

Chipotle operates 830 locations nationwide. The Mexican restaurants occupy spaces of 2,200 sq.ft. to 3,000 sq.ft. in endcaps and freestanding locations. Growth opportunities are sought throughout Orange County, CA during the coming 18 months, with representation by Commercial West Brokerage. For more information, contact Phil Berry or John Romm, Commercial West Brokerage, 2443 East Coast Highway, Corona Del Mar, CA 92625.
 
Like these leads?  Want more?  Go to the Dealmakers website for a FREE Trial subscription to The Dealmakers, the nation's weekly news source on retail real estate.
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