A Two Generation Company - Serving Clients For Over 40 Years • Consulting and Strategy Solutions

Strategy of the Month – June 2011

(The following is Part 2 of 2 and was excerpted from Jim Moore’s book Independent Living and CCRCs; Survival, Success & Profitability Strategies for Not-for-Profit Sponsors and For-Profit Owner/Operators)

MISCONCEPTIONS STIFLE SALES

Turning Deal-Breaking Sales Objections

Into Win-Win Strategies

In part one, the “Four Serious Misconceptions” as well as the typical senior responses to those misconceptions were identified.  In part two we outline the “Seven Steps to Professional Sales and Marketing Success.”

Seven Steps to Professional Sales and Marketing Success

Here is an outline of seven strategies that will help you execute a sophisticated sales and marketing program:

1. Think about how you would advise your parents. Honestly answer the questions, “Could I sell my community to my parents?” and “Could I effectively sell against my own community?” The answers to these questions may be painful, but addressing them allows you to walk in the shoes of your senior prospects (or those of their adult children).

2.   Establish value by stating, “There’s no free lunch.” Seniors will understand that statement, and they’ll appreciate your honesty.  Use the “no free lunch” philosophy to support your position of affordable cost and modest annual increases.  Stress the high value that seniors will experience by living at your community.

3. Correct classical misconceptions early in the sales process. I’ve found that making the following point works wonders: “Seniors like yourself have told me that once they tally all of their current living expenses, they find that their current cost of living is much higher than their initial, top-of-mind estimate.” This is a delicate way of saying that the prospect’s cost of living estimate is probably erroneous and needs to be put in perspective before senior living pricing can be discussed.  This technique shows value and helps avoid sticker shock.

4. Build value before discussing price. Price is the first thing seniors touring your community want to know – but it is the last thing you want to tell them.  That’s easier said than done, but one technique that frequently works is to say, “I know our prices are most important to you, Mrs. Barker.  If I may first show you what we offer here at The Gardens at Westridge, we’ll then discuss price in great detail.  I’m confident you’ll find the price to live here surprisingly affordable when compared with your current financial situation.”

5.   Address senior’s concern of outliving their assets. Explain cost of living and affordability to them like this, “If someone tells you that prices at a senior living community will never increase, they’re being less than straightforward, or they really don’t understand the business of serving seniors.  I can tell you that here at The Gardens we can control inflation better than an individual living in one’s own home.  Our prices have increased only 3 to 4 percent a year since 1990.”

6. Put the senior’s future financial threats in perspective. Say something like this, “In the past, nursing homes were among the only options for seniors. With nursing home costs typically ranging between $45,000 and $60,000 or higher per year, a senior’s financial legacy to their children could easily disappear.  While there are no absolute guarantees, senior campuses like ours can now provide a full spectrum of future care at lower costs.  This allows us to provide a substantial safety net for our seniors, helping them avoid the most serious financial threat they would likely ever face.”

7. Finally, deliver on a very important promise. Here’s how to say it: “Mrs. Barker, if I could assure you that you can afford to live here at The Gardens for equal or less than your current cost of living, plus leave a major portion of your home equity and current savings portfolio as a financial legacy to your children, would you make the decision today to join our community?  I want to further assure you that future increases in your monthly service fee will very likely be less than what you would experience in your own home.”

Using these, and other strategies, you can clarify misconceptions and turn deal-breaking sales objections into win-win strategies for both you  and the seniors you serve.  Chapter 6 contains more details on these senor living pricing misconceptions and sales objection in a problem-solution format.