How to Shop Your Competition and Conduct Your Own Value Comparison Audit

How to Shop Your Competition and Conduct Your Own Value Comparison Audit

I have kept saying that the most powerful leasing tool at your disposal is Value. Don’t think your residents and future residents aren’t thinking about value.

We’d like to “walk” you through the steps necessary to effectively shop your competition and conduct your own Value Comparison Audit.

The first form provided is used to chart Benefits Delivered, and should be used to determine the way that your community is perceived by your own personnel. Employee perception is one of

the lesser recognized elements of

successful leasing, but certainly not one of the less important. It’s human nature to under-value the things that are most obvious and available to us, and overcoming this tendency is often as easy as taking a closer look at the alternatives. Leasing professionals cannot present an

enthusiastic case for leasing at their community until they are first sold

themselves. The Benefits Delivered form provided can be used very quickly, even in a ten minute staff / sales meeting. Gather your staff and have them complete the Benefits Delivered

form, grading your community against your four most challenging competitors in these areas of consideration (location, floorplan design, price, amenities, Mo we need to add these to the above charts policies ,value added services and professional

management). Use a plus / minus rating system (0 for no benefit provided, -- for little or no benefit, - for little benefit, + for some benefit, and ++ for most benefit). You’ll have a better idea of how your staff views the ,community and service values that you’re

BEN EFITS DELIV ERED

offering, but don’t stop there. Send them out to actually shop those competitors. An educated perspective is positive by its very nature.

The next step is to take a closer look at your standing from the customer’s perspective. You can effective conduct your very own Value Comparison Audit, but be warned that “the devil is in the details.” The Value Comparison Audit form provided was initially prepared to gauge the market-entry level of a new construction community, but don’t be fooled into skipping the details if your community is a more established one. When using the Value Comparison Audit form, the “Subject Property” always gets a rating (excellent, good, fair, poor, or no contest). Use the notes section to clarify the score, or to highlight a specific marketable feature. The form also allows the auditor to compare the subject property to three competitors in each area of assessment, in order to provide a better “big picture” view of where your community stands in relation to the rest.

ANALYSIS

Analysis of Floorplans - If a particular floorplan in a competing community is really giving you a run for your money; post a copy of that floorplan next to your similar floorplan during your next sales meeting. Train your leasing professionals to understand the differences and strengths of your apartment as compared to the competing apartment. Be certain that they understand that selling against the

competition by name (as in “Mr. Future Resident, this two bedroom is much better than XYZ’’s because...”) is highly unprofessional, but you should take advantage of the opportunity to let your professionals know what’s out there so that they may more effectively present the strengths of a floorplan to the future resident.

Amenities, and other features - The same comparison technique used above may be used for most of the other points of analysis when comparing your apartments and community to the competition. Often, the competing community’s brochure will include photographs of their outside elevations, special features, etc. If photos are not readily available, shop the competition with a camera, and take pictures of your own

comparable features. Use the photos for side-by-side comparison, discuss the differences, and highlight the strengths that you can offer the future resident. This is also a great tool to use when discussing potential improvements to your community. The Leasing Center - Technology has brought us tremendous innovation, and has also brought us plenty of gadgets with witch to clutter our leasing centers. The Leasing Center of today is clutter free. Hide fax machines, copiers, etc. behind office screens so that the future resident immediately gets the impression that this is a “serious leasing center” and not an admin pool. This also serves to place the leasing professional in the appropriate frame of mind... the room itself prompts the professional to lease.

Realize that the effectiveness of your team is the foundation upon which all other success is built upon. Take the time to conduct a more thorough analysis of each individual team member’s performance; and visit the competition to see how their team compares as well.

CREATIVE MATERIALS

Here, again, side-by-side comparison is effective. Gather all of the ads (newspaper, yellow pages, brochures, etc.) and image materials (stationery, letterhead, etc.) that the competition uses and compare it to your own. The cutting edge design of today is uncluttered and sophisticated. Image materials are sharp and high-quality. Promotional materials must be well written and composed into easy-to-read and follow packages that capture the consumer’s attention.

Copy - It’s a common mistake to use the community’s name in headline advertising. Instead, use the community’s Unique Selling Proposition (USP). Look for ways to creatively present the unique features that you have to offer. Use words that articulate the emotional feelings that you want to conjure in the customer’s mind. We used very different words in years past... we now have households rather than families due to fair housing changes, so we became more careful with our words in the nineties.

Master Photography - This is critical. Look at the details (weeds showing up in the flower beds, missing shingles on a roof, etc.) Use professional photographers, because more than likely, your competitors are not. This is your opportunity to gain a super competitive edge, so don’t pass it up.

SIGNAGE AND GRAPHICS (Temporary and Permanent)

Once again, photographs for side-by-side comparison are your best auditing tools. Look for size, placement, and condition. As our minority population rapidly becomes the majority, multilingual signage will grow in importance. Being the first to take advantage of this trend can give you a definite competitive advantage, especially if your market is ethnically diverse. If it’s not already, it’s likely to be -- and very soon!

COLLATERAL MATERIALS

Furniture Templates - Don’t use floorplan diagrams that include standard furniture placements. Instead, offer punch-out or peel and stick furniture templates that are most likely to suit the actual needs of the resident.

Don’t neglect the opportunity to get to know the competition as well as you know your own efforts -- because where you stand in your market is, of course, relative to where the competition stands. One final word of advice: remember that success doesn’t just come with gathering information. It comes with putting that information to the best possible use in all that you do!

Mo we need to add to this form just like

the top formValue Comparison Audit

5=Excellent 4=Good 3=Fair 2=Poor 1=No Contest

SUBJECT COMPETITORS PROPERTY NOTES #1 #2 #3

ANALYSIS

Community Name and Logo Analysis of Leasing Staff and Procedures

SUBJECT COMPETITORS

PROPERTY NOTES #1 #2 #3

TEMPORARY SIGNAGE / GRAPHICS

Site Road Directionals / Curb Bootlegs (50% Straight Ahead, 25% Left, 25% Right Monument Sign

On-Site Directionals Parking Controls

Leasing Center Identification

SUBJECT COMPETITORS

PROPERTY NOTES #1 #2 #3

SIGNAGE / Curb Appeal

Exterior Design 1) Facade 2) Landscaping 3) Parking

4) Flags & Banners

Standard Features Key Product and Quality

c) Interior Furnishings, Materials, Colors & Finishes

d) Private Cable/ Phone System SUBJECT COMPETITORS PROPERTY NOTES #1 #2 #3 e) Closing Rooms f) Administrative Offices & Workstations g) Kitchen Area h) Receiving / Secretarial Area I)

j) Public Lounge & Waiting Room k) Public Rest Rooms,

Fountains, Coat Room, & Other Facilities

SUBJECT COMPETITORS

PROPERTY NOTES #1 #2 #3

PERMANENT SIGNAGE / GRAPHICS

(Continued)

Community Recognition Building Identification Club / Site Directory & Signage

Interior Directory or Signage (Library, Laundry, etc.) Flags and Banners Fountain(s)

COLLATERAL MATERIALS

Brochure

Brochure (Direct Mail) Residence Floorplans Furniture Templates or “Punch-outs”

Newsletter (Name, Format, Masthead)

Security Deposit and Fees Guarantee

Leasing Information (i.e. Maintenance and/or Related Reprints

Developer / Builder Corporate Information Property Management Information

Lease Agreement, Binder, etc.

Leasing Kits, Aids, Presentations Policy Manuals

Leasing Follow-up Letters Grand Opening Invitations Special Literature