For my Commercial Real Estate Friends: More on Eating the Big Dog’s Lunch

The lead article on competition is an expanded version of a presentation I made to the IREM-CCIM Success Series in October. In this sheet I want to expand on the topic and speak directly to the commercial real estate profession.

Along with the points I made previously (know when and where to compete, adopt a stealth mode and hit them where they're vulnerable) there are seven things you can do to win against the large, well-organized, corporate competitor.

I asked a number of my friends to share their best strategies.

Know and solidify your market position.

As Patricia Lynn, of Lynn + Associates in San Francisco advised, "It's really a question of knowing how you best fit your clients. You have a unique set of skills and a deep, but boundaried knowledge of your market. You could, in theory, help any client, but in fact, there is a set whose unique needs are well fit to your unique talents". Ross Ford, the CEO of TCN Worldwide in Plano, adds: "Don't waste time pursuing business better served by your "big" competitor."
A point that Charlie King of King Industrial Realty in Atlanta reinforces: "We stay focused… and our focus is industrial real estate." Brian French of Realciprocity in Toronto adds: "Show absolute confidence in how assignments will be done."

Compete by slicing off the edge of their market position.

I think Scott Revolinski of RFP Commercial in Milwaukee has the right idea, "I go up against [one of the Big Dogs] all the time and my line is: if you want to list it use them; if you want to sell it use me. Then I promptly show them several similar projects they've listed but never sold. It's very easy since they email available properties every week. I just collect them and save them in a file."

Pick your fights

Josh Levering in Parsippany (NAI Hanson) says, "Know your competition intimately and know when (and how) to walk away… say no." Jeremy Larkin of NAI Miami contends, "Avoid trophy properties for sale. Target small value properties… fewer competitors. Even fewer qualified competitors. Higher commission rates." In Dallas at Transwestern, Sanders Thompson says, "Don't compete in their game; fly under their radar."
Or as Bill Almon of Almon Commercial Realty in Yakima says, "Know when to say 'that's outside our area of competence.' "

Exploit your advantages, their disadvantages

Owen Rouse of Manekin in Baltimore advises, "People hire national firms out of fear – fear that something will be missed… that will result in a negative event to the client. Sell against that fear." And Steve Blau at NAI Mertz in southern New Jersey expands on the idea: "The big boys are hamstrung by legacy systems… and cannot quickly adopt emerging technologies." Hans Hansson in San Francisco (Starboard TCN) is clear on this point: "Very simple. We can make quick decisions that our larger competitors cannot." In Chicago, NAI Hiffman's Dave Petersen adds, "We have no distractions. We have no unwieldy corporate structure to define business practice and process." David Zimmer of Zimmer Real Estate Services in Kansas City says, "We are the fabric of our community."

Supplement your size

Real little dogs turn sideways to look bigger when they meet a bigger one. Ross Ford of FM Stone in Elkhart understands, "We are the "big dogs" in our own market… most brokers, most listings, most SIORs and CCIMs." Dean Cotlow of Tucson's Cotlow Company agrees, "You must appear larger than life. Work on branding. It must be consistent and absolutely first class." From Toronto, at NAI Ashler, Howard Meier adds, "Act like the big ones. When we attend a broker's function, we attend in mass; we seem bigger than we are."

Establish your brand with superior, customized service

John Frager in San Diego at GrubbEllis BRE counsels: "You have to invest in your own brand… and have a well thought out marketing plan with consistent advertising and aggressive PR." Rick Kimball of GVA Worldwide in Boston suggests: "it can be harder for a smaller firm to build a relationship at the highest corporate level, especially when that person is not local. However, chasing down local or regional relationships can be just as valuable." Jeremy Larkin adds: "Out work them. Out service them. Be available 24/7. Respond quicker with more knowledge." From NAI MLG in Milwaukee, John Henderson says: " I make sure the client knows they are dealing with the people who will do the work, not someone brought in to get the business."

Adopt better tools, faster

Robin Zellers at NAI CIR in Harrisburg makes it clear: "We arm our professionals with every available tool to conduct business in an efficiently professional manner. We will not accept the notion that the big boys have better resources."

Great counsel from some of the classiest dogs in the business.

See the PowerPoint slides for this at:
www.pnwconsult.com/iremccim2.pdf