Missing the mark: Businesses sponsoring REIN events?

[Sherilynn]

It seems to me that some of the businesses that sponsor REIN events miss the mark when it comes to follow through.



We go to REIN events and visit the booths and listen to the claims that these companies can help us like no one else can because they specialize in dealing with real estate investors. The pitch reels us in because we have all dealt with companies that don't meet our needs because they lack that experience.



However, in some cases the service with these "sponsor businesses" is substandard. What is worse is that sometimes these businesses try to convince us that the level of service they are providing is the standard of the industry and the problem is our "unrealistic expectations."



I think what may be happening is that these businesses sponsor REIN events and get bombarded with new customers. Of course, they want to take us all on because the whole point of sponsoring coffee or having a booth was to drum up new business.



Subsequently, service begins to slip. Perhaps they used to return calls by the next business day, but now it's 2 or even 3 days. (Or in some cases: weeks.) Turnaround time for our files doubles, and later triples. Again we are told that this is the standard and what we are asking for is impossible.



I beg to differ. While this level of service may be the standard among a few businesses marketing at REIN events, it is most certainly NOT the standard of the industry. There are many "non-REIN" businesses out there that still maintain the standard of excellence that many of us remember and have come to expect.



I would encourage all businesses that market at REIN events to reexamine their standards, and compare what they currently offer to what they offered in the past. If today's benchmark is lower - raise it. Hire more staff, or take on less customers in order to regain lost ground.



I assure you that I am very grateful for REIN and the education and referrals that it has provided me. And many business relationships that I have gained through REIN continue to provide that level of excellence that I so desire.



Nevertheless, I believe that life should be a process of continuous improvement. There is always more to learn, and we can always do better.

 

[RedlineBrett]

We usually do one REIN event a year, big booth and all. We'll do the same next year. I have done several, and know what it's like to be on the other end of what you're experiencing.



I can tell you that REIN clientelle are extremely high maintenance! The issue isn't so bad with experienced investors that understand the industry but the big events are put on by REIN to attract new members. These new members quite frankly don't know anything about investment real estate and have a tonne of questions. They are excited because the events are very energizing and the new members want to know how the teachings translate to real world business on the street.



As such, I generally provide a whole pile of free educations on the real world shortly after we do a booth. I'm fine with that because I enjoy it and frankly it's my job. 1/10 of those rookies will turn into repeat business, but it certainly puts a lot of pressure on me and my group.



[quote user=Sherilynn]I beg to differ. While this level of service may be the standard among a few businesses marketing at REIN events, it is most certainly NOT the standard of the industry. There are many "non-REIN" businesses out there that still maintain the standard of excellence that many of us remember and have come to expect.




The average / standard of the industry in real estate sales and financing is less than one deal a month per agent. The 'average' realtor makes a little less than 40k a year, and mortgage agents are even less. So yes if you are dealing with an average agent you can expect them to be all over your file... but if you want a successful real estate investment buisness you simply can't work with an average professional. It's too much of a niche market. I recognized long ago that I make money when my clients make money. My clients can't keep buying property if they aren't making money. Your 'standard' professional won't see it like that. They're transactional. Sell and move on. Yeah you'll get service, but at the expense of advice. Some of my REIN competition is like this too, but I digress.



[quote user=Sherilynn]I would encourage all businesses that market at REIN events to reexamine their standards, and compare what they currently offer to what they offered in the past. If today's benchmark is lower - raise it. Hire more staff, or take on less customers in order to regain lost ground.


Such is the challenge of growing a business. Hiring staff is a lot of overhead, and can't be done without confidence that the business is there. Even when you hire staff they need to be trained and they need experience which doesn't happen as quickly as leads pour in after a big weekend. I can't speak for other prominent REIN businesses but mine has seen a lot of growth in 2012, and as such I have been pulled into HR / Management stuff a heck of a lot more. It has been very challenging for me. We've added staff, bought a new building, invested in IT, etc. All that requires co-ordination and as a result keeps me away from working files. It means I've had to train other agents to help out.



I know some of my clients haven't received the same kind of 'personal' service that they used to but are now getting a better overall service across their whole portfolio. I'm not 27 with only myself to look after anymore... I'm 31 with a wife, two kids and 14 co-workers whose livelihoods depend on me producing. The $/hr that I need to bring in to keep the lights on has gone way up. So clients get less time with me, but the time they get comes with all the experience I've gained as a professional. Is it the same service? I know I'm way better at what I do now than I was four years ago. But all that matters is what's important to the client and that's a bit different for everybody.

 

[Sherilynn]

[quote user=RedlineBrett]As such, I generally provide a whole pile of free educations on the real world shortly after we do a booth. I'm fine with that because I enjoy it and frankly it's my job. 1/10 of those rookies will turn into repeat business, but it certainly puts a lot of pressure on me and my group.


That's a fantastic idea. This falls into the service excellence category.



[quote user=RedlineBrett]I know some of my clients haven't received the same kind of 'personal' service that they used to but are now getting a better overall service across their whole portfolio.


This is to be expected with growth. (Well done, BTW.)



[quote user=RedlineBrett]I can tell you that REIN clientelle are extremely high maintenance!


Your insights are valid, as usual. And even though we get more knowledgeable with experience, our portfolios also get more complicated.



However, my main concern is with companies that either rest on their laurels or develop a sense of grandeur. In the case of the former, service quality suffers. With the latter, the companies' management or staff tends to think that they have seen it all and that their way is always best. They sometimes don't listen to the questions or requests of their customers and then do their own thing regardless of what the customer needs or wants. And some even get offended when customers request a change.



You see this a lot with really good contractors. The contractor that I have used for years (who has no connection to REIN) had so many client referrals that he could hardly fit us in for a job anymore. Then because he expanded his business so quickly, he had issues with availability and reliability of staff. Service quality suffered for a while. He recognized this and made the necessary adjustments.



By taking on too many new customers at once, both new customers and existing customers suffer. Eventually I would hope that these customers would "vote with their dollars" and take their business to a company that sees the value in steady growth and periodically reassesses its service quality.



Pretending that poor service is the "new standard" cannot fool customers indefinitely.

 

[RedlineBrett]

[quote user=Sherilynn]However, my main concern is with companies that either rest on their laurels or develop a sense of grandeur.


Someone explained this to me once as "fat cat syndrome". Where they like the status quo, and are wealthy enough not to be motivated to change.



I've been on the receiving end of this as well and know what you're getting at. You can vote with your dollars, or if you have a good relationship with the service provider - tell them! I know when I have a voicemail from a good client that has a service issue with part of my business I take it seriously. I'm sure the other REIN guys will too.

 

[Sherilynn]

[quote user=RedlineBrett]I've been on the receiving end of this as well and know what you're getting at. You can vote with your dollars, or if you have a good relationship with the service provider - tell them!


This doesn't work as well when you are a newer client. Then you either get the "we know best" speech or the "impossible expectations" rant. (I got both.)

 

[REINteam]

Sherilynn, thanks for bringing this up, we treat these comments very seriously... if there is a service provider who is not meeting the needs of REIN members, please let us know.



You can send a private email to [email protected], and let us know the specific details that you are referring to. Upon receipt of your email we can address the concern at the source, and hopefully get resolution to your concern.



Success

 

[Sherilynn]

Thanks. One situation is ongoing, so I'll wait and see what happens before I send any details.