I will be co-hosting a FREE 60 minute teleseminar on Wednesday, May 7 at 3 pm EST. The title for this special event is ‘Finding the Right Buyers for Fractional Ownership in Challenging Economic Times’. A hot topic that’s on the minds of everyone selling fractional ownership.

We’ll be talking about the following ideas:

• Finding the right advertising and direct marketing that resonates with your target buyer
• Finding qualified buyers
• Overcoming resistance due to all the bad news

You’ll also have an opportunity to ask your own questions. In fact, there’s a space in the registration form for you to ask your ‘big question’.

Here’s the registration url:

https://www2.gotomeeting.com/register/436844801

Hope to see you on the call.

Susan

I came across this press release and found it interesting for a few different reasons:

• Knowing your affluent buyer is the KEY to successfully selling to them
• The affluent are risk takers and don’t pull back in a recession
• Understanding buying motivations helps you sell
• Even though this study was for financial advisors, you can use this information to help you sell

PHILADELPHIA, April 10 /PRNewswire-FirstCall/ — An overwhelming number of affluent Americans earned their wealth and are more likely to feel secure during challenging economic times compared to peers who inherited their money, according to findings by PNC Wealth Management, a member of The PNC Financial Services Group, Inc. .

PNC’s fourth annual Wealth and Values Survey revealed that 69 percent of Americans with $500,000 or more in investable assets accumulated most of their fortune by earning it through work, business ownership or investments. This compares to the 6 percent who attained their wealth primarily through inheritance. The remaining 25 percent gained their wealth through a combination of inheritance and earnings.

Earned Wealth — Why Worry?

The “earners” are more likely to be concerned about the likelihood of a recession, yet are more confident they can manage through a downturn, PNC found. When asked about a recession, 36 percent of earners said it was a concern, yet 77 percent agreed with the statement “I feel I have a lot of control over my financial future.”

Meanwhile, 27 percent of heirs expressed concern about a recession. Yet, 10 percent fewer — 67 percent — expressed confidence about control of their finances in the future.The earners also have a higher risk tolerance than heirs. Thirty-nine percent of earners rate themselves as moderate to risky investors compared with 21 percent of heirs.”Among the earned wealthy there is a strong correlation between their willingness to take risks and confidence that they can recover from a major negative financial event,” said Thomas P. Melcher, executive vice president and managing director of Hawthorn, PNC Wealth Management’s ultra high net worth division. “Those who inherited their wealth often view themselves as stewards for future generations. As a result, they tend to be more conservative in their approach to investing.

“By understanding the psychology of wealth, wealth managers are better able to deliver holistic advice, the success of which is measured both through investment returns and appreciation for the lifestyle that wealth allows,” he added.

NOW–how can you use this information to help you market and sell to the affluent?

Here are some interesting statistics I ran across on the spending patterns of the mass affluent vs the super-affluent.

• The super affluent spent $22, 300 on wines and spirits in ‘06, while the mass affluent spent $1,900.
• The super affluent spent $61,200 on hotels and resorts while the mass affluent spent $2,400.
  

These are startling numbers for a few reasons.

One of them is marketing.

Are you targeting the right group with your marketing? If you’re targeting the mass affluent, you might consider going up a notch.

Especially in challenging economic times.

I think many companies assume the mass affluent to spend much more than they actually do–which is why I found this research so interesting.

Think of a Rolex watch. It’s ‘yesterday’s’ symbol of wealth. If you had a Rolex ten years ago, you now have an IWC Portugueuse Perpetual. For a mere $30,000.

This is true also in fractional ownership. If your target group is the mass affluent, you may be out of luck this year. The mass affluent have pulled their heads into their shell and are not spending.

Guess who still has the money to spend on luxury goods and services?

The super affluent.

Something to think about as you look at your 2008 marketing plan.

I met quite a few people last week in San Francisco. This was my first time speaking at the Ragatz conference. I have a few thoughts to share on the condition of the market and where there seems to be concern among developers and fractional operators.

There seems to be a general consensus that 2008 will be a challenging environment for all those but the ultra-affluent. If you target the mass affluent, you’re going to need to sharpen your marketing message and make sure your sales people are able to take advantage of fewer prospects.

When times are good, you can afford to lose some prospects. When the sales funnel narrows, it’s time to sharpen the sales skills of your team.

Here are some general recommendations from the Sales and Marketing panel I participated in:

• Use your website to attract new prospects
• Develop broker networks to help boost sales
• Find unique ways to brand or market your property
•  Create a ‘client-focused’ sales approach

If you have any questions, please post them on the blog, or if you’d like to know who provided information on the above topics, just email me susan@susanadamshome.com, and I’ll forward the name of the presenter.

Good selling,

Susan

I know in the fractional jet market, sales mirrored the S & P 500. If the market was up, sales were up. If the market was down….well, you get the picture.

I’m curious if this translates into other fractional markets: real estate, cars, yachts, etc.

I’ll be speaking at the Ragatz Fractional Interest Conference next week. One of the items being presented in the conference, is the State of the Industry. How are PRC’s, Destination Clubs and fractional real estate faring in this economy?

I’ll report back in a blog post when I return.

In the meantime, if anyone has anything to report on what you’re seeing in your industry, let us know.

Is the credit crunch affecting your sales?

Speak to you next week from the conference.

Susan

As many of you know, I provide sales coaching for businesses selling to the affluent. Specifically, the fractional ownership niche.

One thing I always stress is how to uncover a client’s hidden buying triggers.

For example…

• What might compel them to buy?
• Are there any emotional triggers you can uncover?
• Is Exclusivity a buying trigger?

If you ask the proper questions of each prospect, you should be able to uncover these hidden buying triggers.

These are individual to each prospect, but if you ask enough clients, you may find one or two themes consistent among all.

In my program Selling to Millionaires, I have an entire section devoted to Buying Triggers. How to uncover them. More importantly, how to correctly use them to facilitate the buying process.

Do any of you have a common ‘trigger’ you see among those who buy from you?/

Susan

Not usually.

They do; however, buy on value.  That’s something the research tells us.  The issue for marketers and sales people is HOW you create value.

Look in the Wall Street Journal and sample some of the ads. What you see are ads that say the following:

• We’re the biggest, we’re the best. That’s why you should do business with our company.
• Number of years in business.
• Some type of special offer.

Would any of these prompt you to call?

Maybe.

What if your ad for a high end country club said something like this, “My son turned 2 today. Our family and friends were treated to an exceptional birthday experience at XYZ Country Club. You might be thinking, ‘What a stuffy environment for a kid’s birthday party’”.

Not so.

The staff at XYZ Country Club developed a Sesame Street theme for the banquet room.  It was spectacular.  All the familiar characters kept the kids engaged and entertained. Even the food had themes.

Our family will never forget this day!

You can see where I’m going with this.  You’re no longer part of the herd. You’re a club that offers exceptional family experiences.

More likely to resonate than our championship golf course. Don’t get me wrong. The golf course is important to golfers. it needs to be framed in the same light of an exceptional experience, not just another golf course.

Susan

Welcome to my new blog for those who sell and market to the affluent and super-affluent buyer. We’ll be discussing those things that most concern all of you.

I will be doing posts on trends, marketing ideas and succesful sales tools for High Net Worth individuals. With the super-affluent the only group of consumers expected to continue spending this year, it’s all the more important to know what you need to do to attract and keep this elusive buyer.

I will be taking your questions and ideas for new posts, so  don’t be shy!  Let me know what’s on your mind and how I, and my group of industry experts,  can help.

Looking forward to hearing from all of you.

With warm regards,

Susan