If you work the luxury market, it's important to be aware of these three facts that can make or break your luxury business.
1. The rich are paranoid about their safety: the one thing that can kill your business faster than anything else is gossiping about your clients. Celebrities are particularly concerned about their privacy because of stalkers and kidnappers. This paranoia also translates into fear of illness and germs. When you show a luxury property, it absolutely has to be squeaky clean. Also, don't be offended if they're not willing to shake hands with you. BTW, if you have clients from the far East or from the Middle East, it is inappropriate to touch strangers (or people you know) in public.
2. I'm bigger and badder than you. According to Robert Frank in his book Richistan, Richistanis (the ultra rich) are extremely competitive. You can't win by competing with your luxury clients. You have to allow them to be the top dog. I did love the story about the agent who was having trouble closing a male client on a house his wife really wanted. The agent said, "I certainly understand if this is not the right house for you. Very few people can afford a house of this magnitude. I'd be happy to show you something in a different price range." The agent got the deal.
3. Richistanis love collectibles. One of the other important points that Frank makes in his book is that the rich are into collecting things. Some people are into collecting clothes for their pets and others collect everything from civil war memorabilia to chess sets. A smart move is to ask new clients if they have a special collection of items that requires a special room, security, or some other special features. When they tell you what they collect, check it out on Google so you can have a meaningful conversation with them about their passion. It's a great way to create client loyalty.
Posted by Bernice Ross, www.RealEstateCoach.com, Want the best real estate audio training in the business? Check out our Listen and Learn Real Estate Program with over 70 real estate podcasts including great training, great marketing tips, and interviews with the best minds in the industry.
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Great post! From our experience with luxury real estate clients, we find much truth in two of the three surprisings facts presented.
However, we are starting to see a trend in a more conservative approach to ownership. The "cooperative consumerism" that is taking place with fractional ownership sector shows that even these so-called "richians" realize the importance of making smart choices with how they invest in their luxury properties.
Love the site and blogs. Very informative and thought-provoking.
Posted by: Justin Waldron | July 24, 2008 at 10:23 AM