A Tactical Explanation:

When I took the unusual step of naming a real estate company LOVE BRAND, I began with the premise that the word LOVE was one of the most powerful words in the human vocabulary.  Ask someone to make you a Top-10 list of influential words and LOVE will most likely appear on that list.  I also find the word LOVE to be irresistible to the eye. In the realm of business, it seems out of context and demands your attention.

Adding the word BRAND to our name is a centuries old marketing tool that enables the use of “fanciful” names that have no direct reference to the product.  You’ll notice that a lot of vintage logos include “Brand” as part of their defining words or graphic.  Vintage logos are one of my favorite art forms, so it was easy for me to make that connection.

A Practical Explanation:

Using the word LOVE in a business context always seemed  a little silly to me.  But today, it seems to be an appropriate contrast to the systemic greed of big business. Consumers have become hardened and hurt by the selfish acts of bad businesses that put profits ahead of people.  Consumers are looking for win-win business relationships, not win-lose.

When we use the word LOVE in business, we’re  harnessing the power of positive presumption.   We want people to assume by the very nature of our brand, that we have their best interests at heart.  And of course, we must remain true and embody the unique meaning of our Brand.  In the end, it’s about trust.  In order to build successful relationships with people…they have to trust us.

A Meaningful Application:

At the foundation of a trusting relationship is The Golden Rule.  If we treat people with the respect and consideration that we personally desire, then we begin the cycle of a meaningful and positive relationship.

To LOVE your customer, as yourself is The Greatest Commandment!  To apply asinine rules, one-sided contracts, and deceitful sales practices against your customers is not a gesture of LOVE…it’s a demonstration of selfishness and dishonesty.  Who needs that?

A Reality Check:

An authentic Brand is not what you say you are – it’s what you do.  When you share your knowledge, networks and opportunities, you become a valuable asset to everyone around you.  When you approach relationships from a position of generosity, selflessness and transparency, you’re giving a unique gift to those you serve…you’re demonstrating LOVE.

When was the last time you were kicking-back on a Sunday morning, reading the newspaper, and just happened upon the perfect house in the classified ads?

The ad copy was so compelling and the two-inch photo was so enticing that you just knew this was the perfect house for you.  You called the real estate agent, toured the house, and closed on the home 30-days later.  Honestly…when was the last time this happened to you?  The answer is never.  Why?  Because buying a home is a process that takes a great deal of planning and forethought.   It’s not an impulse purchase.

So why do so many home-sellers and real estate agents spend good money on these useless ads?  The answers will surprise you:

1.  Agents use the ads to gain exposure and generate new leads.  While the ads don’t actually sell houses, they do show that the agent is busy and actively engaged in the market.  Some agents intentionally split their ads up so that their name and logo can be seen numerous times on a single page. Basically, the agent is killing two birds with one stone.  They’re promoting their brand to generate new leads while creating the illusion that they’re hard at work marketing your listing. 

 

2. Very few home sellers (or REALTORS for that matter) are Marketing Pros.  They mistakenly assume that the newspapers Reach (distribution numbers) equals qualified buyers.  A newspaper might have 125,000 subscribers, but how many of those readers are home-buyers?  How many will go to the classifieds to see the ad?  How many are looking for a $275,000 home in the Sugar House area…with two-bedrooms?  You get my point.

9 out of 10 home buyers begin their search for homes on the internet because it’s the best tool available.  They’re looking for multiple (large) photos, house details, maps, and comparables.  They filter their search to the neighborhoods and the price range that meet their needs.  Classified ads just don’t measure up.

Here’s a case in point:

Media One Real Estate, partly owned by the Salt Lake Tribune, promises to reach more than one-million readers from its’ various media properties.  They run several pages of the useless two-inch ads several times per week in the print version of the Salt Lake Tribune.  A good portion of the homes advertised are older listings adorned by a banner that says “Sold” or “Under-Contract”.  To the reader, this looks very impressive.  It looks like the ads must be working.  But it’s really just a “before and after” strategy, similar to the ones used by weight-loss marketers.  The ads promote the real estate company, not the home for sale.  If the intent of the ad was to actually sell the home, they would dedicate a larger photo and more descriptive copy.  And if they were really serious about the ads, each ad would display a web address where potential buyers could view a virtual tour of the home (it’s what buyers want the most).

Here’s a surprising fact that Newspapers won’t tell you:

Of all the homes sold by Media One Real Estate last year, 9 out of 10 buyers were brought to the transaction by another REALTOR.  It wasn’t the newspaper ad that successfully attracted the buyer; it was the MLS (Multiple Listing Service).

To put “lipstick on a pig” is my favorite rhetorical expression. It’s often used to convey the fact that a superficial disguise can’t hide the truth forever. I use this phrase because of its built-in imagery.  It amplifies the obvious truth.  Despite your good intentions, it’s still a pig. 

Let me explain how this expression applies to real estate marketing:  

Let’s say that we were to create the most incredible marketing campaign imaginable for your home – so successful that we attract thirty potential buyers in the first 30-days on the market.  When the buyers arrive at your home, what will they experience?  Is your home better or worse than promised?  Is it a bargain, or is it overpriced? Is your home incredible, or is it just average? Put yourself in the buyer’s shoes and answer these questions (honestly). 

So just how important is advertising and marketing when it comes to selling a home?  I put it at a firm #3; behind #1 (Price) and #2 (Condition).  If you miss the mark on #1 and #2, you’re in for a long and painful selling experience. 

In a buyer’s market, if you’re trying to sell a worn-out house for top-dollar, the best marketing in the world will fall flat…you’re just putting lipstick on a pig.  If you haven’t received a legit offer after 20-showings, the market is telling you something:  You’re over priced or your house is not as great as you think it is.

How do you know if your home is unique and priced right?  The market will tell you in-time. Or, you can hire us…we’ll tell you everything you want to know before you waste a lot of time and money.

Profitable Myths?

Regular gas has an octane rating of 87, midgrade gas is 89, and premium is 91 or 92.  Contrary to popular belief, the octane rating doesn’t indicate how much power the fuel delivers; all grades of gasoline contain roughly the same amount of heat energy.

Lewis Gibbs is a consulting engineer and 45-year veteran at Chevron Oil Company. He’s chairman of Technical Committee 7 on Fuels, part of the Society of Automotive Engineers (SAE) Fuels & Lubricants Council. Gibbs knows gas.  He fills his car up with regular gas.  Despite the allure at the pump of getting more horsepower or better performance by using “premium grade”, Lewis knows that it’s just simply not true. The gas companies know the truth.  They earn a premium-profit by allowing this little misunderstanding to survive.

The Full-Service Real Estate Myth:

The Real Estate Industrial Complex would have you believe that if you pay a 6% commission to a real estate agent, you’ll get better advice, better agent performance, and a higher selling price for your home.  If you pay less than 6%, you’re not getting “full-service” – you’ll be getting “limited-service”.  I’m sorry folks…this is simply not true.

Real estate agents are independent contractors, working for loosely-knit brokerages, that have no minimum service standards.  The best agents in the business work side-by-side with the laziest agents in the business.  They work at the same brokerage and they all charge a 6% commission to sell your home.  So who’s providing the full-service?

When you ask a real estate agent what “full-service” means,  you’ll get some kind of song-and-dance that includes service-blah, marketing-blah, advice-blah, negotiating-blah, blah, blah.  The reality is, there is no such thing as full-service in real estate, because there is no standard of excellence in the industry.  It’s a profession that requires about 90-hours of licensing-prep, a heartbeat, and a clean criminal record.  Sad, but true.

There’s nothing wrong with an agent charging a 6% listing commission.  But they shouldn’t do it under the guise of full-service…that’s BOLOGNA.

Photo by: Tom Spalding

It’s fascinating to hear people talk about their experiences in buying and selling a home. The process is fraught with emotion, with unique surprises at every turn. Insert a Drama-Queen-Agent (King as it may be) into the equation, and you have nightmare on your hands.

Some real estate agents just don’t get it. It’s as if they’re trying and justify their worth to their clients by making the process more difficult than it really is. They create drama where there is none. They have the skill of creating problems rather than solving problems. Go figure.

We successfully closed another buyer-side transaction in Salt Lake City the other day that serves as a practical example. The Seller’s agent missed every contractual deadline, using one excuse after another; communicated with a consistent 24-hour delay; became overly defensive on issues that did not exist; created more problems than she solved; and generally seemed intent on turning the transaction into a Battle Royale. Look lady…we just want to buy the *******house! Hello…do you want to make this deal work or not?

Let’s face it, conflicts and surprises are part of the human experience. But some people have a penchant for overreacting to seemingly minor (or non-existent) incidents. They tend to become needlessly dramatic whenever the order of their expectations becomes disrupted. They focus on problems rather than finding solutions.

One of the primary roles of a Realtor is that of facilitator. You set out to achieve the desired results for your clients, knowing very well that problems lie ahead. You keep your head-up, on full-alert for potential problems. When the problems arise, you look for creative and cooperative ways to solve them. You help people understand the issues at hand and guide them towards a successful solution. The process is simple. But it requires professionalism, creativity, cooperation, negotiation and compromise.

Great Realtors set out to make your real estate transactions more successful and less stressful. They do all they can to make your life easier.

LOVE BRAND + Salt Lake City

LOVE BRAND SIGN

Did you know that sprucing up the home’s entry way can make a major impression on potential home-buyers?  Making simple improvements like adding new house numbers, door hardware, kick-plates and fresh paint can have a dramatic effect on a home’s curb-appeal.  That’s why LOVE BRAND wouldn’t be caught dead putting a cheap and flimsy tin-sign with bad graphics in your front yard. 

The new LOVE BRAND yard sign is irresistible to the eye.  It’s custom made with top-grade materials for each and every home that we represent.  It’s stylish.  It adds to the curb appeal of your home.  

10 out of 10 people surveyed say the LOVE BRAND sign is the most “attractive and noticeable” sign in the neighborhood. 
See for yourself here.  

• High-grade 4×4 posts of redwood, coated with 3-layers of natural color shield.
• Hand painted sign components with a sturdy vinyl graphic overlay.
• Built with sturdy steel joint-supports to prevent sagging.
• Customized toll-free number for 24/7 access to information
• Customized domain specifically leading to the home’s website
• Direct access phone number for the listing agent
• Quality literature box attached to post filled with full-color, laminated card-stock, “6×9” information cards
• The LOVE logo is displayed in high contrast white on red.  It draws the eye like a magnet.

LOVE IS THE KILLER APP

It’s funny how life works. It’s been exactly two years since I read an article in Fast Company magazine, called Love is the Killer App by Tim Sanders. At the time, Tim was the Chief Solutions Officer at Yahoo!. He made a compelling argument for a concept he called “Business Love”. At its’ foundation are acts of professional generosity that benefit the lives of the people you work with. He surmised that what the business world needs (lately) is less greed- and more love. 

From the perspective of a well studied capitalist, the concept seemed a little utopian. But my entrepreneurial instinct told me it was an irresistible idea, whose time had come. After all, isn’t it this level of kindness that’s at the core of great customer service? Who doesn’t want to be served better, or be loved more? 

Sanders’ wrote “the most powerful force in business isn’t greed, fear or even unbridled competition. The most powerful force in business is love. It’s what will give you a sense of meaning and satisfaction in your work, which will help you do your best work.” Then he added the perspective of philosopher Milton Mayeroff from his book, On Caring. He writes “Love, is the selfless promotion of the growth of the other.” When you help others grow to become the best people that they can be, you are being loving — and as a result, you grow. 

Business Love, can mean a lot of things: 

• It can be the act of sharing your knowledge and networks, with your business associates. 
• It can be a commitment to learning as much as possible in your field and sharing that knowledge with your customers. 
• It can be a policy of transparency that builds trust and security with those whom you serve. 
• It can be acting human and expressing genuine concern in the harried world of busy, busy people. 

SO I DIPPED MY TOES IN THE WATER

Direct Mail Feb 2009

In February 2009, the shit was hitting the fan. The entire US economy was in the tank. The American consumer was paralyzed. The real estate market was uncertain. Banks were paying million dollar bonuses to the very same people who had just cost taxpayer billions of dollars to bail them out. Trust was at a new low. 

I was working on a direct mail piece for Druce Real Estate, when it all came back to me. It hit me like a ton of bricks. “What the world needs now is a lot more love and a little less greed.” So, the LOVE postcard campaign was born. 

As I was about to press the send button to launch my print order, I was overcome with anxiety. Would this postcard be perceived as silly? Would the Department of Homeland Security tag me as a Commie? What will people think of me now? I held my breath and hit the send button. 

Two days later I began to receive the phone calls and emails. Strangely, they were all positive comments. The message just seemed to sit right with people. It wasn’t silly at all. It became a center of conversation. I smiled at the irony. 

THE LOVE SHACK

The Love Shack

I later became the proud owner of a used Travel Trailer. A friend spotted the lonely RV in a farmer’s field in South Jordan, UT. I gave the farmer’s widow cash, she gave me the title. To me, it had the potential to be a big sign on wheels. It’s an advertising expense that my family could sleep in at the upcoming Utah MS-150 fundraiser. I didn’t know what I was going to do with this thing. But whatever it was, I was sure that it should be painted fire-engine red. 

I decided to brand the big red trailer with the logo of my real estate blog (powreplant.com) . I had the windows tinted, cleaned up the interior, installed air-conditioning…it was good to go. We also added a little surprise at the suggestion of my wife. Since the color of the trailer resembled the color of the LOVE postcard (my most successful direct mail piece to date), why not slap a six-foot LOVE decal on both sides. We’ll call it the LOVE Shack. 

In a sea of a thousand travel trailers, this thing stood out. It quickly became a popular landmark. “Take a left-turn at the red LOVE trailer”, people would say as they directed their family and friends into the event. As the day came to a close, the party began to emerge. It began as the Circle of Love…then turned into a full-blown Love Fest. 

IS THIS SOME KINDA SIGN?

Some Kinda Sign?

Now we’re into the holiday season of 2009. Business had been horribly slow and I really was not in the mood. I attended a Christmas party with my wife, Denise where most of the people were strangers to me. As I introduced myself to the party-goers, inevitably, they would ask me to repeat my last name (Druce). 

It was at this moment that I realized, “I’ve got a branding problem”. Druce is a key-word in the name of my real estate company (Druce Real Estate). Years ago, I decided to use my surname as a brand out of some sort of strange attachment to business tradition. I love the concept of the small town business scene where each person was known for their trade. My grandpa’s business was called Druce Signs. He lived in an era where your name was only as good as your word. The townspeople were your friends, customers and business associates. 

I wondered, “Is this some kind of sign”? What’s the likelihood of anyone at this party remembering the name of my business by the end of the night? Slim to none? This is a marketer’s death sentence. No name-recall… no phone-call. 

2010 – LOVE CAME TO TOWN

Sending you all our LOVE, Michael. See you soon in the SLC!

One thing’s for sure, the real estate business has been kicked in the teeth. It probably needed it. There is so much room for improvement. But, change happens slowly, if at all. The traditions of real estate have been firmly entrenched for years. And they don’t take kindly to interlopers who want to change the order of things. 

History has shown that economic depressions and recessions can cause a lot of suffering at both the individual level and the business level. But they can also serve as catalysts for inspiration, creativity, and new levels of achievement. What a perfect time to change EVERYTHING. It would be a shame to waste a good crisis. 

On February 1, 2010 the LOVE BRAND was born. It’s a full service real estate brokerage doing business in Salt Lake City. LOVE – A Real Estate Revolution. We’re officially hard at work to change the look and feel of real estate in our town. We hope you’ll join us. We look forward to Loving and Serving. 

That’s the LOVE STORY to date. We’ll keep you posted as the story progresses. 

Michael Druce

BIG IS NOT BETTER…BETTER IS BETTER.

The business of real estate suffers a huge image problem.  It’s a profession that has been marred by a sales model run amuck, self-serving organizations, a low barrier to entry, and self-dealing scoundrels.  

The big-brand brokerage models were never designed to delight the consumer.  They were designed to make a profit by assembling a critical mass of agents (feet on the street).  There’s no meaningful vetting process for hiring agents beyond checking for a pulse and a license.  Turnover is high.  Long-term professional development is the exception, not the rule.  The biggest fear of the big-brand brokerage is not a dissatisfied customer; it’s a customer that is so dissatisfied that they sue.

State licensing requirements are a half-baked regulatory process that merely separates the convicted felons from the rest.  The education requirements are so weak that they pale in comparison to those required of a hairstylist.  The curriculums of the real estate schools are little more than a glossary of terms and a thorough review of the State Code.

What we have today is an over-populated and under-qualified sales force that is largely unaccountable for their results.  They hide under the guise of a nationally recognized brand that affectingly creates an aura of trust through their advertising.  You’re led to believe that a company with a 100-year heritage must have things running like a clock.  Sorry to break the news…they don’t. 

Admitting to the shortcomings of real estate industry is the first step to making meaningful change.   Creating a clear consumer awareness that BIG is not better; better is better is the second step.   Contrary to big-brand broker ads, there’s no longer an advantage to “large-scale” in real estate.  The advantage of scale went the way of the printed listing books.  Big brands cannot be trust-worthy, only people can.  A big roster of agents does not a network make.   Networking is a function of the individual and their ability to communicate effectively. They must be likeable and professional.

The negative reputation that plagues the real estate agent cannot be changed by yesterday’s business model.  It will require a dramatic, systemic shift.  Consumers are not “leads to be converted”.  They are real people and families who deserve personal attention, professional advice and exceptional service.  They need agents with professional skills beyond the minimum standard.  They need the help of marketing experts, skilled negotiators, and nimble entrepreneurs. 

Hail the restless pro’s who are busting out of the big-box brands to become boutique brokers.  They carry the flame of excellence that will lead the future real estate.

Buying or selling a home will be the single largest transaction that most people will make in their lifetime.  It’s enough to turn an ordinarily calm person into an emotional wreck. The stress associated with moving has been ranked 3^rd, behind getting a divorce and losing a family member.  Now imagine getting tied up with a bad real estate agent that adds to your stress at every turn.

Good real estate agents are hard to find.  Think of it like this:  of all the businesses that you patronized this month, how many of them went out of their way to make your life easier?  How many surprised you by going the extra mile to make sure your needs were met?  I’ll bet you could count them on one hand. Real estate is no different.  There are thousands of licensed agents in Salt Lake City.  So how can you protect yourself from entering into a binding contract, and later find out that the services was less than you expected?

Ideally, you want someone who you can trust; someone who makes your interest their own.  Someone who knows the ropes well enough to keep problems from happening in the first place.  And when problems do happen, they handle them with your best interest in mind.  You’re looking for a partner whose professional skills satisfy your expectations.  At the very least, you want someone that will simply stand by their word.

There is a growing niche of real estate brokers who are trying desperately to separate themselves from the pack.  They are setting standards high above the basic requirements of REALTORS®.  They operate with transparency and clear service expectations.  They are caring for their clients like they were guests in a hotel.  They are using technology to improve communication and streamline processes.  They are constantly looking for ways to make real estate transactions less stressful and more successful.

When you’re taking the initial steps toward buying or selling a home, I want you to contact us.  We’ll help you reduce the stress by giving you some great advice and we’ll introduce you to some very good people who are great at what they do.  Of course we will do this for no charge and with no obligation – whatsoever.  By the time you finish speaking with us, you will know without a doubt what your next move should be.

When the time is right, call 801-550-7255 or email me at md@michaeldruce.com.  I promise, you’ll be glad you did.

Michael Druce
Principal Broker
LOVEBRAND

It used to be that the ultimate value of a real estate agent was their exclusive access to listing information.  The real estate companies of yesteryear had a virtual lock on all the essential listing data.  The brokers made the rules.  The consumers followed.

Today’s technology has changed the game considerably.   Listing data is now widely available through IDX , allowing any REALTOR with a website to provide a live listing feed from the local MLS .  Consumers now have 24/7 access to powerful search tools and vast array of resources to help guide them .   They are empowered with choices and information. They have become active partners in the process.

LOVE AGENTS are meeting the new expectations of home buyers and sellers.  We provide services that save time, reduce stress, increase convenience and add value.  Below are the core competencies that we hang our hat on:

• We are trusted advisors
• We are experts in the use of legally tested, State approved contracts
• We reduce risk
• We are educated negotiators
• We are efficient transaction managers
• We are real estate marketing experts
• We gather, manage, and study information
• We think strategically to solve problems
• We help our clients gain advantage in the marketplace