BLACK FRIDAY- WALMART ORIGINATORS VS. TIFFANY’S ORIGINATORS
Hope you had a great holiday. We had over 20 people over yesterday for dinner. Some were not able to make it because they had to work while a few others were anxious to leave early so they could get some of the special sales available when the stores opened early.
This got me thinking about us as originators and the different business models we use to generate new business.
THERE ARE WALMART LOAN OFFICERS.
Like Walmart they compete on price. They must be available 24/7/365 like a Walmart superstore. They will and regularly do lose deals because of price because they offer nothing special.
Walmart loan officers work on Thanksgiving and must excuse themselves from dinner and other family occasions because they MUST take that call or meet that clients or go to that meeting.
THE TIFFANY LOAN OFFICERS.
Have you seen the Tiffany’s commercials and flyers for their Black Friday sales? No of course not because they don’t have one. Their employees and clients were enjoying their Holiday dinners uninterrupted.
Yes- they will be busy today but they will do way fewer transactions than a WALMART jewelry department and their prices will be 10-20 time higher.
BOTH HAVE LOYAL FOLLOWINGS BUT WAY DIFFERENT EXPECTATIONS FROM THEIR CLIENTS AND WAY DIFFERENT DEMANDS ON THEIR EMPLOYEES AND MANAGERS.
I have to confess that for my 15 years in the business I truly believed that I had to be available 24/7/365-while offering the best price and giving the best service. Sometimes I would do a deal for free just so I would not lose the relationship.
Truthfully, I did ok , not bad , not great but made a decent living.
But I was constantly exhausted and very often grumpy and mean. I figured there had to be a better way and then I set out to figure it out and I did.
IF YOU ARE AN EXPERT SPECIALIST INSTEAD OF A GENERALIST YOU WIN.
Let’s go back to our example of Tiffany’s and Walmart.
When you buy jewelry at Walmart no one will stop you and saw WOW !
When you buy jewelry at Tiffany’s people will stop you and say WOW!
Buyers are price sensitive at Walmart but not at Tiffany’s.
Tiffany’s is NOT OPEN 24/7 but many Walmart’s are.
Tiffany works on higher priced items with higher margins. Walmart works off penny’s.
NOW – Please don’t be offended – but Walmart attracts lower end buyers while Tiffany’s attracts higher value clients.
SO WHAT DOES THIS MEAN FOR ORIGINATORS?
Very simple – you have to stop hoping and actually choose which business model works best for you.
I prefer to work on higher end transactions and be more elite than worry about price.
I prefer to be sought out and known for my expertise in a niche than trying to be everything to everyone.
Now don’t misunderstand- I still do FHA – VA – CONVENTIONAL and even Bond and grant programs. But I don’t compete on price.
Just yesterday I lost a deal because my price was an 1/8th higher. Now that might have upset me many years ago and losing a sweet 20% down easy 200,000 conventional loan might upset you.
But if you KNOW that you have more business coming in than you can handle because you are a sought after expert- the OBVIOUS GO TO EXPERT- well that takes the sting out of it doesn’t?
So here’s a formula for you :
Pick a Niche
Become The Expert
Let Everyone Know YOU are the OBVIOUS GO TO EXPERT
IF you are not yet a member of the Boomerang Expert Implementation Program you should grab a seat for what may be the final LIVE TRAINING for this program.
If you are a serious originator and curious about how to finally control your production – you should get on my early bird notification program for the
TOP ORIGINATOR MASTERMIND- I put together a short video for what this is all about right here