Monthly Archives: June 2016

How Will BREXIT Affect U.S. Commercial Real Estate

BREXIT

Monday, June 27th Headlines…BREXIT turmoil deepens: Dow down nearly 900 points in two days.  British pound down 12% to lowest level since 1985.  $2.5 trillion wiped out of world markets. However, by the close of markets on June 28th, the Dow was up 269.5 points (1.57%) and the S&P was up 35.5 points (1.78%) erasing some of the loss from the BREXIT decision by the British voters.

All the attention to BREXIT may just be an overreaction as Britain won’t be exiting the EU any time soon.  If and when the U.K. government invokes Article 50 of the Lisbon Treaty of 2007, there will be two years of negotiations about the terms of Britain’s future relationship with Europe.  And it could still be delayed quite a while as a general election or a second referendum could take place.

It seems the market’s reaction to BREXIT is one of fear of the unknown rather than something that will definitely take place.  It is doubtful the U.S. trade with either Britain or the E.U. will change.

In Conclusion…This is an example of why we like commercial real estate.  It is not likely that any of the 100 or so construction cranes will come down in the Dallas-Fort Worth area due to a referendum in the U.K.  Nor will it stop the 1,000 people on average per day moving to Texas.

And for our self-storage industry, Americans are not going to stop storing stuff because of this referendum passing.  Nor will the demand for new space decline.  This is why we like self-storage in particular.

 

 

How To Build A Marketing Plan No. 2

Tell marketing story

Telling your company story is the best marketing plan.

Introduction…In our last addition of this blog/video we discussed how our marketing plan should start with identifying our target customer and mavens. And it is helpful if we give that target a name so when we are writing ad copy it can also be focused.

Right message…Once we have identified our target, the next step is to create the right message or USP.  Our Unique Selling Proposition (USP) explains our position as compared to the all the other choices in the market.  One of the greatest USPs of all time was Domino’s Pizza…”Hot, fresh, 30 minutes or less, or it’s free.”  Unfortunately, they had to move away from that USP as their territories grew.  But, the pizza consuming customer always knew what they would get when they called for delivery.

A USP tells the chief benefits of whatever our business is marketing.  It may express the them in terms of your business, product or service.  This can be based on product, positioning, or price.  You could be the lowest price, the highest price, the best value, or the most convenient.  It could also be the longest hours of operation, 24-hour customer service, best warrantee or free service.

Twenty year ago I met a group of young guys who were selling after-market spoilers for autos.  They had a life-time warrantee on their product.  A tree could fall on your car and they would replace the spoiler at no cost.  Eventually, they realized that their customer was the auto dealers’ general manager who made the buying decision for their product.  After that realization, they would warrantee their competitors’ product and replace it for any reason.  Then they always were the first to get the call from the dealer.

Here are several more notable USPs:

  • Anacin “Fast, fast, incredibly fast relief”
  • M&M’s “Melts in your mouth, not in your hands”
  • FedEx “When it absolutely, positively has to be there overnight”
  • Metropolitan Life “Get Met.  It Pays”
  • Southwest Airlines “We are THE low-fare airline”

Our USP is the answer to the prospect’s question…Start with the question, “Why should I choose your business/product/service over any competitor’s option.”  If we can’t answer this question, then we may have a going concern problem.

Marketing values further strengthens our USP.  FedEx dominated an industry by a commitment to on-time delivery.  Mike Crow teaches home inspectors to AATP…always answer the phone.  If you just got a contract on your new home at 8:00 PM, you will want to set an appointment to inspect that home at 8:00 PM.  Not 10:00 AM the next day.  His students often get the job when others are unavailable.  This is a tremendous value to the home buyer.

Click here to watch How To Build Your Marketing Plan (story) No. 2.

Conclusion…Our marketing message is the story we are going to tell about our business.  We are going to tell it in all our marketing media.  The place to start is put one fact, feature, benefit, offer, promise, on paper from a series of brainstorming sessions.  Do this until you have exhausted everything known about your business and its competition.  Then we will be ready for next week’s discussion on how to communicate that marketing message.

Click here to go Get 9 Little Known Secrets For Steady Real Estate Income – Free – At top of this page

How To Build A Marketing Plan For Your Business

Marketing Plan

Introduction…I recently read in my trade journal, Self-Storage News, “New Rules For Marketing, Smart Web Marketing Tactics.”  I was excited to read what they had to say.  The article started, “Set Your Goals” and Set Your Budget.”  I agree we should set some goals for our marketing, but setting our budget as the second item is way too soon in my opinion.  Plus, a generic percentage of gross sales is meaningless as we should spend as much money on marketing as has a positive return on investment.

Let’s say for example we had a marketing channel that for every $100 we spent, it returned $500 in sales.  That would be 500% ROI.  If we knew that, we would most likely want to spend as many $100 as long as it remained profitable.

I would suggest we start with the basics.  Who is our target market?  And in that target who are the most desirable customers?

Several years ago I asked one of my fellow Certified Public Accountant how his business was going.  His response was, “Great, I’m very busy, I just can’t get people to pay me.”  Ok, so if you give your product or service away for free, it’s not hard to find freeloaders.

Here are a few questions you could ask to help find your target market (target avatar.)

  1. Who is the best paying customer?
  2. Who is the customer most likely do repeat business?
  3. Who is the customer most likely to buy multiple products from us?
  4. Who is the customer most likely to refer others?
  5. Who are the mavens that will most likely send multiple customers?

It is very helpful in your marketing to give that target avatar a name.  Make you marketing personal to that target.  Each business will have a different target.  So, let’s find yours.

For self-storage, we know that 70% of the properties are leased by woman who live within 3 miles of our project. Our target market area in a populated area is those living a three-mile radius.  So, it is relatively easy to get those demographics and spend our marketing dollars finding those most likely to rent storage.

Click here to watch video “How To Build A Marketing Plan For Your Business.”

In summary… Our marketing should start with our target market.  Once we know who that is, we can start to build our marketing plan.  We will continue to develop this subject of our marketing plan in future blogs/videos.  To learn more about marketing and/or self-storage optin to our “9 Little Known Secrets For Steady Real Estate Income…FREE” at www.self-storageinsider.com.