“The only time my prayers are never answered is on the golf course.”
— Billy Graham
Something that I have often observed throughout my 30 years in commercial real estate, is that top producers don’t spend much time complaining about how difficult it is to close transactions or make money despite what they’re experiencing right now within their own brokerage business. Top brokers have more passion for the business. They enjoy the business more than everyone else, and it shows in their attitude every single day. They brush off any disappointment and move on, convinced that they’re about to uncover another opportunity. I like to say that at CDC Commercial we have an unfair advantage because we love what we do.
Like golf, it is good to have passion but it still takes time, repetition and persistence to be really good. According to the National Sales Executive Association, did you know that…
- 48% of sales people never follow up with a prospect.
- 25% of sales people make a second contact and stop.
- 12% of sales people make more than three follow ups.
Yet 26.6% of all inquiries result in a sale. And it that is not enough;
- 2% of sales are made on the first contact.
- 3% of sales are made on the second contact.
- 5% of sales are made on the third contact.
- 10% of sales are made on the fourth contact.
Eighty percent of sales are made on the 5th to 12th contact!
San Diego County’s unemployment rate dropped from 5.9% in September to 5.8% in October. October’s rate was a big drop from last October of 7.4%. Meanwhile, S&P/Case-Shiller index reports that home prices are decelerating. On the commercial real estate front, low inflation and moderate growth is maintaining the values of existing properties. Continued economic recovery will lead to more space absorption and higher rents and greater values. We are truly in a “Goldilocks” recovery – “not to hot and not to cold.”
Stagnant incomes and rising rents left the U.S. with an unprecedented number of doubled-up households as people moved in together to make ends meet. There are 5.4 million households that are lost in guestrooms and basements, waiting for better economic times. Like a golfers body coiled in a swing, these double up households represent a tremendous potential energy to be released into the market.
Although retail sales are on the rebound, the industry is dealing with the whole e-commerce and omni channel issue. Amazon , the online retail giant, is not only doing same day delivery but they are opening a brick-and-mortar store across from the Empire State Building in NYC. Meantime, Wal-Mart has opened “click-and-collect” facilities. These are drive up grocery pick up facilities. You order online and in as little as two hours you can pick up your order from a drive up kiosk in your neighborhood. I believe this concept will gain traction with Walgreens & CVS using their drive thru’s to deliver more SKUs. Is 7-11 next? Shopping centers will reposition around this concept. Shopping Centers will either be “anti-social” – pick up and drive thru or “social” – where you eat, wander and are entertained.
So in an attempt to tie the subjects of this month’s letter together (golf, passion, persistence, employment, double up housing and the changing face of retail), I would like to introduce you to Austin Zech (my #3 son). He is a PGA Class A teaching pro with a degree from the University of Nebraska in Golf Management. On December 1st he will be launching two businesses that are unique in the realm of the golf and retail/entertainment world. The first is the operation of a golf simulator where you can book a quick lesson (15 minute increments) or play 3 holes at your favorite course on the simulator and receive a lesson. This will all take place at The Centre in Escondido (Lexus & Vintana). The lesson will be personal instruction with a video of your swing and instructions emailed to you for future study. (www.AustinZech.com). Come play three holes at Pebble Beach with a lesson and then catch drinks upstairs at the Vintana restaurant !(www.AustinZech.com). If that is still too much for you then you might try his other site at www.OneMinuteGolfer.com where you can upload a video from your phone of your swing from the office or by the Christmas tree and get a video analysis back in 24 hours. Gift certificates for the golfer (or want to become golfer) in your life also available.With any level of success, I expect his “doubling-up” at our house to end soon!
This is the time of year when we all become dangerously close to burning out. So as the year comes to a close, take the time to do some things you normally do not get a chance to do such as see a new movie, play some golf or sip some fine wine. The most important thing to do is to relax, enjoy your family and re-energize your battery. On behalf of the whole team here at CDC Commercial, I would like to give thanks to you for your business and our relationship. All of you inspire me to be better every day. I can’t thank you enough. And of course, I hope you enjoy the story.
Regards and Happy Holidays!
Don
Christmas Golf
Back in October a Christmas wish I made.
A brand new set of golf clubs before next year I played.
Then on Christmas morning with my eyes I spied
An oblong box under the tree, with ribbon wrapped and tied.
I looked out the window and saw the ice and snow.
But in my heart I knew, a golfing I would go.
Now I’d need some special gear to play in these conditions.
So I loaded up my golf bag to start a new tradition.
A broom to sweep the greens and a hammer for the tees
And different colored balls for white I wouldn’t see.
Arriving at the course, the ground was glistening white.
I wouldn’t have to wait, a tee time was no plight.
I swept away a pile of snow and pounded in a tee.
Placed a colored ball atop it and swung away with glee.
My ball went soaring down the fairway and landed with a flop
Into a two foot snow drift (unplayable), take a drop.
My next shot went into the sand, a shot to truly dread.
Then all at once I spotted him, a man all dressed in red.
As I’m lining up my shot, it’s Santa Claus I think,
When my ball flew in the hole, He looked at me and winked.
I knew these clubs were going to work, I’d just made a par.
Let’s play one hole together before heading for your car.
To believe in Santa at sixty, you might think it queer,
But it isn’t very often you get to see reindeer.
A long par three lay next, as we walked upon the tee.
There was no flag to aim for and the green I couldn’t see
Don’t worry said the man in red, I know what lies ahead.
Use your trusty five iron and aim it for my sled.
I’d like to thank you for these clubs, I wasn’t sure that I would get.
He said you’re welcome son, but Christmas isn’t over yet
I kept my head nice and still checked my stance and grip.
“Nice shot” said the bearded one, it’s hanging on the lip.
It seems a shame, he must be blind, there’s no ball upon the green
And I was disappointed because I’d struck it crisp and clean
And now you know my story and no one would believe.
How I made my first hole in one with Santa there to see.
– Jeff Opperman
