I was reading an article last week in the Denver Post dated August 24th 2009 entitled “Colorado Foreclosures: Wanting a Piece of the Auction.” It dawned on me that this ever-growing sector of the auction industry, real estate, is being gobbled up by huge auction companies because of one reason — tenacity.
Whether you are a veteran in the auction business for decades or just a brand new CAA Member, the down economy can easily be disheartening. It can make you start to feel negative about your business and even your life. Staying wrapped up in the doom and gloom of it all can leave you like a deer in the headlights, not sure where to focus, or even worse, keep you doing the same old thing you have been doing. We have all heard that the definition of insanity is to keep doing the same thing that isn’t working over and over. As they say, when life gives you lemons make lemonade. There are a lot of positives in the auction business due to this economy. However, the fact of the matter is, most of us choose to complain about it rather than make it successful for us. Maybe you are just “getting by” and feel like that is good enough for you considering the shape the world is in. However, history shows us time and time again that there are more opportunities for people to become wealthy when an economy is in decline.
The auction sales of agricultural land and residential real estate have continued to grow year after year since 2003. Combined, they account for 43 billion dollars last year alone! Where are those billions of dollars going? Large auction-industry competitors are coming to your area to capitalize on the opportunities. What does their huge cookie-cutter McDonald’s style business have that your locally-known company does not have? Could they have better service? Do they have more desire to get the work, more enthusiasm, or more creativity?
YOU should be the dominant player in your own backyard, but it will require that you not sit back and wait for prospects. In the current economy, you must work hard marketing your business to make it financially rewarding. Get a new range of possibilities and work on adapting your business to fit the trends in the industry. Focus on the specialties that are on the increase and limit wasting too much time on the declining ones. If you feel that you do not have enough knowledge on the real estate industry, either brush up on it by reading or take some classes to learn all you can. It is not necessary for you to have a realtor license, you can partner up with someone who does. Also, the NAA offers a very professional and easy-to-follow free power-point presentation on its website that may be used at meetings with potential clients.
Are you ready to get your piece of the auction?
Start with a commitment to make 10 new contacts each week. Getting these contacts can be as simple as opening up the phone book and calling businesses. Try contacting realtors, real estate schools, and other organizations. Offer to go to their sales meetings and give a free ($295 value) power-point presentation about how to close more deals and get more commission checks by utilizing the auction method. Contact banks that hold real estate loans, other lenders, and U. S. Trustees. Offer them solutions to reduce their inventory and make them aware your services. You may have to make many contacts with a client or go out to lunch until they give in. Utilize the online social communities – facebook, twitter, etc. – not for socializing but to make important business contacts. After 90 days, start calling back every single person you contacted in the first place. The fact is that most of the time it takes 5 to 7 contacts with a person before you will build a business relationship. Don’t give up.
Many CAA members reading this article will not take up my challenge. Maybe your auction business is doing just fine. If that is you and your strategies are already working, congratulations. For the other members who do attempt to make a change and promote their business in a different way, please let me know how it turns out. As CAA members, we are all in this changing economy together and we can all increase our knowledge through sharing. Improving our industry as a whole, improves us as individuals.
The business that fails to change with the times is the business about to go out of business.
If you know someone who might benefit from our services, please contact Kevin Rutter, president of Hot Auctioneering, a professional auctioneer, speaker & writer. Kevin is ready to ignite the excitement at your next auction or event! Please visit his website at http://hotauctioneering.com/
