Louis Black’s hilarious riff on Starbucks.
It’s worth watching in light of Starbucks announcement.
Starbucks is what happens when becoming big is more important than becoming great. When flooding a marketplace with too many locations drains the balance sheet.
Sound familiar?
Brokers: Have you ever stood between your many locations, looked at your watch and noticed time just standing still?
If so, maybe it’s time to start pruning like Starbucks. Let’s face it, Starbucks can’t exist unless people physically shop in their stores. But what about you? Can you thrive without locations?
End times?
With gas at $5.00 a gallon, with the cost of all goods and supplies skyrocketing, I wonder:
- What is the fate of the retail real estate location?
- What is the benefit of a high rent storefront in today’s marketplace?
- Do those benefits outweigh the disadvantages?
- In 25 years will real estate be completely virtual?
- Will we see competitive virtual brokerages take market share and thrive or is that a pipe dream?
I’m interested in your thoughts. From agents who work entirely from home to brokers who are either trimming fat or afraid too.
See here’s a thing — if the trend is to trim, cut and close, you’re going to need to build your profile online. And in that regard, you will no longer be able to get by with a run of the mill web presence. You are going to have to start staking serious claim on the Internet.
Are you ready for that? Do you know where to begin? If not, that’s what this is all about. Let’s get the issues out in the open.
- Davison
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Shutdown the real estate retail locations and have agents start conducting business at…wait for it….Starbucks!
The trend for me has become commonplace in that 85% of my leads and income have been generated by leads from my website. I "nurture" those leads from initial point of contact through closing. I design and tweak my website daily to attract leads and keep them there so that I may provide a service to them that no other Realtor in town is even thinking about. When the NAR states that 80% or so of your potential customers initiate their search for real estate on the Internet (I personally think that number is way low), then we need to be crafting our services towards that arena. Real estate continues to be all about relationships though. If your website can convey and give potential customers a decent "snapshot" of who you are as a Realtor, you will go a long way in terms of generating, keeping, and closing leads from your site!
Let me see if I have this right.
When a real business (Starbucks) senses and economic down turn they immediately do the following: (1) cut back on physical space and overhead; (2) analyze, restructure and fine-tune their market definition and presence to ensure viability; (3) layoff a targeted percentage of the work force asset who have actually become liabilities.
Starbucks, like all "real" business models, exists to produce and deliver a product and service to the consumer and thus an adequate and sustainable ROI to investors.
Starbucks does this by controlling its economic model in the marketplace for maximum return and minimal capital risk.
Flip the coin over.
The real estate industry uses an entirely different business approach where it: (1) builds and maintains bricks and mortar models that are not assets but overhead and are largely monuments to ego and brand, ; (2) creates hiring qualifications, practices and profiles that have nothing to do with enforceable productivity and measurable contribution to company profitability; (3) assumes a passive human resource personnel policy that will ignore the need to diminish its work force through terminations in favor of placing a high premium on having and retaining a lot of agents; (4) ignores the consumer's perceptions, their wants and the way in which they would like to relate to us and do business with us; (5) fail to address and correct the inability of most Realtors® to be expertly trained financial counselors to consumers who, in many cases, are using our services to invest their life savings in a real estate transaction.
Have I got this right?
REALonomics
http://www.REALonomics.net
Big box companies need to cut back on the fluff that no one cares about (big offices and [empty] cubicles, and spend more time, money and effort on working with new agents, as well as seasoned agents, to properly and constantly train them to be PROFESSIONAL realtors … and I don't mean training that utilizes the antiquated canned questions and answers that are ridiculous and insulting. Caring that the customers who come to [someone representing] their respective companies receive the best, and proper, representation should be their first priority. Times will continue to change rapidly and substantially, and definitely for the good when the dust settles. Hopefully the QUALITY of the agents will become much more valued than the QUANTITY.
The big box real estate store will soon be a thing of the past. I think the new real estate office will remain necessary, but will be a small boutique storefront. They may have a receptionist, a managing broker’s office (perhaps), a small bullpen with a few desks, a copy machine, a fax (a thing almost of the past), a couple of PCs, and a conference room. Open for business, yet by appointment only.
The agent/broker of today, armed with good internet presence, a good brand, a Blackberry, home office, laptop, website, and a blog etc., has no need for an expensive desk in the big box office. Why? It doesn't serve any real purpose any more. Especially if they have a good marketing/prospecting plan and work it. They need only to be where the leads are! Where they can meet, greet, talk, and mingle with existing and potential clients… on the phone, the internet, the coffee shop, close to the client’s home or place of work.
The world is rapidly becoming a more expensive place, yet one thing in these times is still even more precious, TIME! Many of the successful agents and brokers I work with have figured that out and have totally restructured the way they work to fit the life patterns of their clients.
Like the saying goes, “There go the people. I must follow, for I am their leader.”
Great contributions everyone. I do and can see a need for a boutique space with heavy environmental branding that caters to an experience that is otherwise missing today.
For my own need to know, I visited a real estate office this morning. I was greeted by a receptionist who could do nothing more than take my name. There was no one there to help, no public console for me to sit and surf, no video for me to watch. When I asked about services such as if I list can you guys do a virtual tour I was told "we don't that." So I left. Neither one of us benefited.
While this is somewhat endemic to real estate for the most part there are several examples of brokers and agents that have reacted on a dime and are moving forward into the future.
If you are new here or somehow missed this post, I recommend reading it to see how one a major franchise entity has taken matters into their own hands. http://www.1000wattblog.com/2008/06/striking-while.html
Marc, In a few days, we're launching a new real estate company in Los Angeles. Our office is located at one of the most prestigious office addresses in the area. Our visitors can easily find us listed in the building directory, they are greeted by a receptionist, shown into a well-appointed waiting area, offered Starbucks coffee, bottled water, etc. We meet them in our conference room, which offers an unobstructed view of the Pacific Ocean out floor-to-ceiling windows. And we pay less than $400/month for all of this. We've opted for an "executive office" that offers everything that a visiting client might ask for — except we have no permanent office space in this facility. Everyone in our company works virtually, except when there is a meeting scheduled in our conference room.
Obviously, this won't necessarily suit a "walk-in" client. But after spending a few years managing a traditional brokerage here, I don't believe there are any of them left in Los Angeles. Certainly not enough to justify the outlay of traditional office space.
Will we ever take on permanent space? We'll see. But if we do, it will be exactly as you've assumed — a boutique space with heavy environmental branding that creates a completely unique customer experience…the one that you've been writing about for the past 18 months. Stay tuned.
Jon,
This is fascinating. I have to believe the future holds great promise for thinkers like yourself and establishments such as the one you are opening. How many square feet is the space?
Congrats and best wishes for great success!
The entire space is probably 6,000 square feet — there are private offices that are also leased out by this executive suite company, but I've never seen even half of those offices occupied, so it's quiet throughout. And the 2 glass-walled conference rooms are sound-proofed as well.
In formulating our plans, I looked at the 2 biggest cost numbers on a traditional brokerage's P&L — rent and print advertising. Neither of these seemed important to running a successful real estate business in 2008, so I decided that we would embrace a business model that contained neither.
Thank you for your good wishes. I'm optimistic that we're going to be doing business in a manner that will connect with a number of today's real estate consumers. I'll keep you posted on our progress.
25 years before virtuality? Are you kidding me? (This from a guy who just conjugated an adjective).
If the current market persists we may be working out of the closed Starbucks and our broker's offices that go under in the next 12 months.
Who knows? With 52 convenient locations in our local market from one national brand…maybe it's time for a bowel movement in our business.
Marc,
Great post as usual. You actually got to see our office here in Chicago and it's just along the lines that you speak of. 4,000 sq. ft. 170 agents. 50 desks. Copier, public computers, conf. rooms, etc. etc. Our most productive office did about $750 million last year, 230 agents, 15,000 square feet. That's sales of about what? $50,000/sq foot?
I think that this whole "brick and mortar" mentality is probably well accepted by the real estate world (at least the forward thinkers) for quite some time. I actually worked with a company in the past that would bump their agents' commission splits up 5% if they worked virtually. 80% of the office was virtual within a month.
The mentality I believe that has to be overcome is that your streetfront is part of your marketing campaign. People walk by, see your sign, your listings in the window and that's marketing. What the company doesn't think about is what really matters.
(Option A.) You've got great street presence and a striking office
(Option B.) You have a small satellite office with a bunch of hustle and bustle going on in there, but instead invest your money into GREAT online presence, training, marketing materials = which equals 25% marketshare in the neighborhood with signs everywhere.
The other topic that was brought up in a post, though, is one that is near and dear. Quantity versus Quality. I used to recruit for a company that would hire anyone with a license and a heartbeat. Now, all the "coaches" and trainers in the industry are encouraging all these not-so-great agents to, "GET ONLINE! JOIN A SOCIAL NETWORK! BLOG YOUR BRAINS OUT!" Uh oh. How's this for a marketing campaign? Bigger isn't better, especially when in today's society… everyone can see you, and if you're bigger, they just see all the parts we don't want them to see. (ass jokes aside)
My suggestion to anyone that is embracing the new "virtual" model has one message… REINVEST IN YOUR COMPANY. Training, technology, presence, the end client… If an agent came to my house, gave a listing presentation and told me that they had a small office with low overhead so that they could feature my listing on Realtor.com and every other website FREE to me… I'd sign on the dotted line.
Matt Dollinger
http://www.theyoufactor.com
Yes Matt,
On that note, as you know, I stumbled in and out on my way from the W to the American Express office. Wish I had more time to spend there but I was indeed blown away by the sheer elegance of the space. I was even more blown away by why you weren't there – taking agents on a field trip to the Apple store. A keen look into the patterns, habits and cultures of your next generation client. Well done!
My worry is that brokers and owners read this, but only get half way. Getting rid of, or cutting down on the bricks and mortar, only works if you are willing to replace it with the rest of the package. You can't stop paying rent and then expect magic. Please heed the advice about creating an amazing online presence. Get agents new and exciting training. Get agents out into neighborhoods and homes. Put some money into marketing and advertising. This is not a manifesto to be cheap, it is a manifesto to be bold.
A prudent worry Geordie. Going virtual means much. But can be accomplished quite easily especially these days with so many beacons out there showing you how it can be done. In fact, check out the broker section on our map – http://www.1000wattconsulting.com/web2.0 – it's growing with great examples.
I see no way that capital can be made on the investment into huge space and a glamorous office. It used to be necessary but the internet has alowed us to do everything in cyberspace that we could do at the office. If this wasn't the case the major players wouldn't be closing or at least consolidating space.
BTW – thanks for referring me to Pat and Kevin
We have a different vision at rehava. We think the customer wants more service and we have developed a "retail" setting.
Please see our prototype here:
http://blog.rehava.com/about
Our initial Client feedback is nothing short of overwhelming and we strive to improve our service.
Is there a new Bible discovery that just hit the world?
Body: Dear Paul, I highly question your youtube videos. The idea that people getting on planes one early morning on 9/11, had any connection to the fiery furnice in the book of Daniel is questionable. The fiery furnace that these three young hebrews faced in Babylon was about faith. You connect George Bush to freeing Iraq as having to do with eagle's wings. Prove that from the Bible or I will remove you at once by exposing you a false teacher. Prove that Babylon was to be freed by eagle's wings, or I will expose you to every one here.
Where are these Bible verses found? Jerry
Sorry, you are confused and I hope I can porovide some answers for you. If you have not taken any Bible courses concerning type and shadow prophecy, it is hard to grasp what this means. For example, Adam was commanded to perform sacrifices for which purpose he did not understand within his own time period.
Abraham was likewise commanded to perform sacrifices useing a lamb. He did not understand this commandment either.. God suddenly commanded Abraham to sacrifice his only son in place of a lamb. Later we realize that these events had much less meaning for the people of Abrahams day, and actually represented a type or model for Christs sacrifice to come in the far future.
In otherwords, true prophecies only are fulfilled when an earlier type has been exemplified as a significant twin prophecy before hand. You ask for proof? One cannot prove it by facts.
We cannot prove that Abrahams command to sacrifice his only son, directly foreshadowed the Father in heaven allowing the sacrifice of Jesus!
But, this teaching is understood by all Bible scholars. Was it an exact parallel???? Not really, becuse Abrahams son did not to have to go through with the sacrifice, and Jesus did.. So you have some variations within twin prophecy. Daniels the prophets famous prophecies begin with the very same type and shadow twin patterns, just as earlier prophecies continue to model.
What happened occured within Babylon and king Nebuchadnezzar was literally being set in place through God, for a latter day understanding given for our time, and not just for Daniels own time period. This Godly message was revealed by king Nebuchadnezzars dreams. The dreams reflected the kings own life story. Daniel told the king about this important matter directly from the Bible. God told Daniel to "seal the words of the book" until the last days.
Why?? To be later understood for our latter days, when knowlege is increased.. "Daniel 12:11." The king wanted his kingdom to endure forever, and was very concerned about the future of Babylons continuence. God answered the king directly through Daniel the prophet who interpreted the kings dreams. "But there is a God who maketh known to the king what shall be in the latter days." "Daniel 2:28." The king was to have "plural dreams" and not just one dream, revealing the future of his people."Daniel 2:1.
The mystery of the dream was that Babylon and the king were essentually the same thing in prophetic meaning. The "head of gold" was not only Babylon, but represented the king himself sinominously. The dream was about the kings life story having meaning in the far future. Babylon also represented the 7 times of the gentiles. The dreams and the kings life were about the future of his people, or, future gentiles who would be born after Babylon and live in the latter days. That prophecy would become Iraq today, because Babylon still sits next to Baghdad directly in the exact spot even today.. Daniel stated that the actual reason he had come to Babylon was to "make known what should happen to thy people in the latter days.""Daniel 10:14.
"
So the three Hebrews being forced into the firery furnace was a type for a future latter day prophecy, just as Abrahams life story was not exclusive just for his time alone.
Daniel stated that the true meaning of the book of Daniel, would later become "unsealed at the time of the end." But, not until something significant happens in the last days would we see all of the prophecies completed.
"Daniel 12:8"
These are twin prophecies and must be matched up for today, or have no true meaning. You stated that the people waking up on 9/11 had no idea that they would headed for the fiery furnace. I am sure Shadrach, Meshach, and Abednego had no idea upon that morning that they were heading for a firery furnace either.
9/11 exemplifies amazing examples of faith in God. It took a greater faith in God for the Americans flying aboard flight 93 to overthrow the terrorists and sacrifice their own lives by driving the plan directly into the flames of death. After 9/11 we soon witnessed the greatest national quest for faith that we had ever seen in American history. Churches were literally filled past their capacity.
What was the connection with the three Hebrews in Babylon with the American eagle's wings today? These men were willing to die for their religious freedom in Christ. A direct parallel to the reason America actually exists today. The American revolution was about peoples willingness to die for religious freedom, by resisting a king, who tried to force religion through politics.. It was a freedom to worship Christ and following the only true God! Not following a state religion dictated by a king. Babylon was the symbol of a Lion, and so was England. Gentiles today grew eagle's wings after being transformed into a new creature from a the symbol of the lion of England.
The American revolution itself was all about religious freedom. The key point is that men trust in a power greater than themself. They must be willing to die for religious freedom like Shadrach, Meshach, and Abendego who face the flames of death.
King Nebuchadnezzar repented after great suffering, he grew eagles feathers which enable the eagle to fly in his dream. "Daniel 4:34." He grew birds claws on his feet in this futuristic dream. This is the very means by which the eagle kills its prey and defends himself.
President Bush today controls not only the great eagle's wings this christian nation, but also controls the deadly birds claws of the US military for defense. The dream of Nebuchadnezzar was futuristic, like unto Abrahams future model, not understood then. The king tried to control his people with politically powered eagle's wings. Why the difference? Dictators try to use political force in place of Gods power to free and save people. The king was playing God over his own people.
God plucked his political wings and humbled him "Daniel 7:4." Wings represent power, and there are two kinds of power upon the earth originating from both Satan and our God. The roots of the tree of life represent both good and evil. The ground was cursed after Adams sin. But the burning Bush sanctified the roots in the ground as Moses stood upon holy ground near the burning Bush. The curse of evil roots was removed from Adam in that holy spot. The ground could not bring forth weeds and evil thistles near the burning Bush. The same type was exemplified for Babylon. God commanded that the evil tree of Babylon be cut down. but, "leave the stump and the roots alive" for a future transformation. God was going to save gentiles as well as Jews!"Daniel 4." The clue given by Daniel is something any elementery student could answer. What happens when you water a tree stump? It becomes a Bush. Today Iraq is being transformed by a George Bush of freedom.
By what power is this freedom coming to Iraqi people?
By eagle's wings which represent our christian nation today, America. This is was the same model given for us back in Moses time. "For I have delivered you from the Egyptians upon eagle's wings and have bought you unto myself."Exodus 19:4." Where did the command to deliver us upon eagle's wings come from? The Bush. Today a modern Bush (type) is delivering the land of ancient Babylon from evil roots, and transforming it into a Bush of freedom. Our president represents the modern gentile christian nation today from that prophecy.
Were eagle's wings not being plucked off when the planes hit the towers on 9/11?
Satan is fighting that christian nation with all of the forces of hell in order to get us out of Iraq.
Why? To stop the prophecy!
Satan has even fought to transform our nation into a ruthless Lion nature once again during this election. Trying to destroying the eagle's wings and shame our military. Sarah Palin cries out to christians to pray for Gods will to become finished in Iraq, and those evil forces seek to destroy Sarah Palin as well. Tell me again that we are not living directly within these Bible prophecies today! Listen to Sarah Palins prophetic words on my sight on myspace.
If you wish to help this prophecy become known so that we can fight Obama and the anti war movement ,please help me send this prophecy to everyone you can! full story www. eternlatruth. net
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Polka DOTS!
Nov 15, 2008 12:06 PM
I too have read the book and agree that this is more than just another christian book just coming out. I was amazed and am still amazed with the content and actual scripture supporting this Bible message. A very clear message concerning modern Iraq becoming free through a modern eagle, and also a Bush, exactly as Daniel writes. I do not think that this is by chance that America is the eagle, and Bush is the authority behind freeing Iraq. No wonder the evil forces are fighting to get America out of Iraq. They are trying to stop a prophecy in the Bible from happening. That means that Satan will also work very hard to prevent you from discovering this truth also. i was amazed to see the entire event of 9/11 in my Bible! How did all of that stay under the radar away and from christians for 7 years? But it did do so until now. Obama could be exposed as apposing Gods will in the Bible by this one book. Sarah Palin did request that we pray for Iraq to be revealed as Gods will. Many have prayed for this to happen. I believe God just answered millions of prayers through this book. But do christians have the faith to believe that God will answer them directly? We know Satan wants America out of the middle east, and will do anything to get us out of there. Perhaps, even elect Obama. THE FORCES OF EVIL PLAN TO DESTROY ISRAEL. OR, DID WE FORGET THAT? Perhaps God has more work to do before the end, and America being stationed in Iraq is holding off total destruction for a time. If that point is true everyone needs to get this information and follow Sarah Palins request to pray for Gods will in Iraq. The author understates the power of his book. I thought he was overstating it until I just read it. I could not put it down. Kat -Delete