Trust and Gut and the Internet               

Almost every time people choose to work with you, essentially "buying" what you have, they do it because they get a feeling in their gut that you will satisfy what they want.  The only way for people to get there is by asking questions.  And sometimes the people who have the responsibility to make decisions don't know what questions to ask.  In my opinion, that's why salespeople started talking so much.  It's also why so many of us don't like salespeople.  Conversely, we all love an informed trusted provider of products and services, but they really are hard to find.

I think we are all much more worried today that we can't trust anyone but ourselves.  As a result, we end up doing a lot more research and spending lots of valuable time becoming "informed" before making choices.  While it seems like the "right" (ok, smart) thing to do, and certainly we have more information than ever, I sometimes long for opportunities to simply make my decision based on what I got from a trusted salesperson.  So you know what?  I try to do that every chance I get.  I try to limit my pre-purchase research.  I wonder if I tracked my successes and mistakes when purchasing, using time and effort on my part before the decision as part of the equation, if I'd find that the absolute most efficient and successful way is relying on a good salesperson?  

And don't get me wrong, I know a good salesperson isn't always the answer.  But sorting through all the stuff on the internet is arduous.  As Google's co-founder Larry Page puts it, "The perfect search engine would understand exactly what you mean and give back exactly what you want."   And when Google began, you would have been pleasantly surprised to enter a search and immediately find the right answer.  Google has risen to its grandeur because it's been better and faster at finding the right answer than other search engines.  But make no mistake; it's getting harder, not easier to find what you need because there's always more information coming.

I find that things like Angie's List, Consumer Reports and other aggregators of quality products and services are good, but in the self-service manner of finding the best or even a good "xyz", I think blogs are the way to go.  For my "time dollar", I find I can sort through the blog messaging fairly quickly.  The complainers always outnumber the "atta-boys" which is a helpful sorting tool.  It's pretty easy to weed out the Chronics and come to some conclusions.  

Friends and family are of course our best source when we're making purchasing decisions, but because they have a fairly narrow scope, particularly when it comes to our work lives, we need additional help.  In order of precedence, here are the best ways to make purchases: 

1.    Hone your gut by trusting it every chance you get.  Learn from the times it has never let you down

2.    Do your research only from the standpoint of learning what to ask the salesperson, professional service firms or the "business development" person.  (You have to love the fact that professional firms find sales people so disdainful they have to give them a title to hide the fact they are supposed to actually sell!)

3.    Develop relationships with, and then hold on tightly to salespeople you trust.  Treat them really, really well by being honest with them and paying them what they're worth

So my last word on this issue of "how to effectively buy stuff" is there's a fact that has been proven over and over.  People like to do business with people they like.  Notice I didn't say they have to be friends.  That of course can be an added bonus if the relationship is built on trust and respect.  So act nice.  Help others get what they want and need.  It'll make your purchasing of "stuff" easier and more fun.  And isn't that what "buying" should be?

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by Jeff Hicks, President of The Dohring Group
Do you know where you were when your commercial appraisal career turned commodity?  It was July 21, 2010. The day the Dodd-Frank Wall Street Reform and Consumer Protection Act was signed.  Sure, improving accountability and transparency in the financial system is a great thing especially considering easy residential credit and Wall Street's chain-sawing of our economic structural foundation aided by complicit rating agencies.  However, the Chris and Barney duo (as in Senator Dodd and Representative Frank) I believe inadvertently created the "Wal-Martization of Commercial Appraising Act of 2010".

The competent ethical commercial appraisers find themselves in a bidding frenzy with much less experienced appraisers.  The Act accidentally established a minimum that has become the new standard, short-sighted trend to focus on the immediate and not the long-term. Not all appraisers are the same.  Just being on an "approved" list is overly-simplistic.

The current bidding volume in most markets in the United States is up notably but the fees have plummeted.  Why is that?  Some say the new law creates an environment in which first-class appraisals are just too expensive.  The new business model rewards the low fee, quick turnaround via blind bid.  Lost are the long-term relationships and nuances of a particular property in a particular market. 

Playing devil's advocate, this relationship morbidity allows newer younger appraisers into a largely "locked" market for the first time.  Some call them "bottom feeders", but others just see them as more competitive and entrepreneurial.  Let's face it, the average age of commercial appraisers is not getting younger.  So your recent uptick in competitiveness is either older established appraisers scrambling to take up their game (i.e. working much harder) or other new entrants to the field that are largely not designated but state-licensed - the "new norm". 

I think competition is a good thing.  It's a bad thing if you are unwilling to change.  "If you don't like change you're going to like irrelevance even less", wise words from retired U.S. Army General Eric K. Shinseki.  You can also see it on a national scale.  Since WWII, the United States was a global rock star but we have been coasting ever since.  I think this coasting is not a result of reaching a plateau but it is that other countries finally caught up with us.

Some recognize the regulatory burden as an opportunity.  Microsoft's Paul Allen decided to ditch his bank charter in favor of common sense approach to lending.  Mr. Allen recognizes the growing resentment and frustration of small business's arduous access to capital due to the unintended consequences of Dodd-Frank.

A recent movement by a long time MAI to create a national AMC-of sorts, banding together a group of high-quality designated members is evidence of very good appraisers trying break the "Wal-Mart" chains of low cost providers or at least start the conversation. 

We presented the issue of commoditization of services to a local CEO Council roundtable discussion, who concluded once you are a commodity, that's it.  You're done.  Commodity is death.  
The solution?  Two-fold:

First:  It's time to get back to work again - create, innovate, design, implement and execute.  Retain strong enthusiasm and positive attitude toward your profession.  Maintain and expand your working relationships despite the Act's attempt to snuff it out.  You cannot regulate ethics.  High quality appraisals require talking with real people not "tweet-like" spurts of limited communication between appraisers and administrative assistants.  And without an ounce of self-serving promotion, I know you can no longer ignore software solutions to facilitate your work production and overall efficiency.  Our newest commercial report writing product in the testing phase, Edge version 3.0, is in my opinion, a game changer.
 
Second: Don't let this law create a permanent condition of high production low margin.  I look to the Appraisal Institute's leadership, its members and passionate commercial appraisers nationwide to lobby for a revised Dodd-Frank Version 2.0. 

Citi Trends, Inc. trades as Citi Trends at 480 locations throughout the southeastern, mid-Atlantic and midwestern regions of the U.S., as well as CA, NV and TX.  The stores, offering apparel, footwear and accessories for men, women and children, occupy spaces of 12,000 sq.ft. to 15,000 sq.ft. in neighborhood, power and strip centers.  Growth opportunities are sought throughout the existing markets during the coming 18 months.  Typical leases run five years.  A vanilla shell and specific improvements are required.  Preferred cotenants include dollars stores and grocery, apparel and footwear retailers.  For more information, contact Steven Horowitz, Citi Trends, Inc., 104 Coleman Boulevard, Savannah, GA 31408

C&B Restaurant Corp. and H&S Restaurant, Inc. trade as KFC at three locations in NY and seven locations in NJ, respectively. The fast food chicken restaurants occupy spaces of 2,500 sq.ft. to 3,000 sq.ft. in freestanding locations. Growth opportunities are sought throughout Bergen County, NJ and Orange and Rockland counties in NY during the coming 18 months.  For more information, contact Joseph Cavegn, C&B Restaurant Corp./H&S Restaurant, Inc., 14 John Street, Stony Point, NY 10980-1912

Mel's Drive-In operates eight locations throughout CA. The 24-hour, '50s-themed diners, offering breakfast, lunch and dinner, occupy spaces of 4,000 sq.ft. to 6,500 sq.ft. in freestanding locations and store fronts. Plans call for three openings throughout southern and northern CA during the coming 18 months, with representation by Ira Spilky & Associates. The company will only consider ground leases or build-to-suits featuring 20-year terms. Outdoor patio seating is required. The company prefers to locate near hi-rise business districts, densely-populated residential neighborhood and entertainment venues. For more information, contact Ira Spilky, Ira Spilky & Associates, 2566 Overland Avenue, Suite 660, Los Angeles, CA 90064  

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