THE GAS STATION STORY

Value is one of the thousands of words in the dictionary with many different, yet similar meanings.

The first definition of value found in Webster's is that value is an amount expressed in money or another medium of exchange that is though to be a fair exchange for something. As it applies to us, that definition of value applies only if we are fully commoditized.

Consider the example of any commodity other than gasoline that can be purchased at a gas station. The gas station can charge more and compete less on price because they add value by providing convenience. However, there is no convenience in their gasoline so they must charge a competitive price for it, otherwise they would have little or no business at all and no one to buy their marked up Gatorade or Twinkies. 

But whenever the customer does not have the need for convenience, they will typically buy the same items at the local grocery store or Wal-Mart because the price is far less since there is no added surcharge for convenience.

Would gas stations sell all of the beverages, gum and tobacco they do without their value proposition of convenience? Of course not. They add a simple value proposition to the commodities they sell, which is exactly why they can get away with charging $2.00 for a small bottle of water.

The question you must ask yourself is this... Do I want to sell my water like Wal-Mart by charging a lower price than everyone else or do I want to sell at a more favorable price by providing the commodity along with something of significant added value?

More tomorrow...

GET ON YOUR FEET

Get up and make it happen.

The old expression about "thinking on your feet" is one that is so colloquial we never give it much thought but consider the abstract though that the expression is not "thinking on your butt" because we can all think and speak better on our feet rather than in a chair.

Getting on your feet will help you make it happen because on your feet your mind and voice simply function better. (As long as you aren't trying to do three other things at the same time.)

Standing up during important phone calls is one of the time testes strategies employed by successful people in all walks of life. For you, it starts with your voicemail greeting. Always stand while creating your greeting. Your voice will sound better and you will sound more confident. And the same goes for any conversation where you have to be your best. Stand and deliver.

THE TEACHER

“My name’s the teacher, that is what I call myself. And I have a lesson that I must impart to you. It’s an old expression but I must insist it’s true.”

While the "teacher" here is the subject of an old Jethro Tull Song. This song has one of life and business's greatest lessons amidst the guitars drums and flutes. But alas, like many classic rock songs the guitar riffs are what sticks in people's minds rather than the words which are so often hard to understand and absorbed by music.

The great lesson is the next line of the song...

“Jump up, look around, find yourself some fun. No sense siting there hating everyone.”

And you probably thought the word "hating" was actually "healing". (Just a slight difference which changes the entire message from the teacher.) Healing everyone sounds so much better than hating everyone, but when you hear the word "healing" you lost the true meaning of the lesson. Which is this...

Excitement (fun and success) rarely happens without our efforts to seek it. Those who seek it will find excitement and those who sit will watch the world go by with an ever increasing amount of jadedness which morphs into hate for many.

So jump up, look around and find yourself some fun. And while you are at it, try jumping up next time and every time that you need to be at one hundred percent.

To be continued...

LIFE'S LUBRICATION MECHANISM

Tolerance is defined as....

• (1) The acceptance of different views.
• (2) The act of putting up with something or someone irritating or otherwise unpleasant
• (3) The ability to endure harsh or difficult conditions.

How high is your level of tolerance?

The higher your tolerance, the more content you will be with life and with your inner self. Plus, with an elevated level of tolerance you will cause those around you to be more content and far more tolerant of you.

We all conduct ourselves a little differently and we all tolerate those differences at varying levels. Nevertheless, those whose levels of tolerance exceed the norm tend to be happier and more successful in all walks of life. Going through life without tolerance is like an engine running without oil. Eventually the friction causes a meltdown and soon thereafter there is nothing useful left.

Tolerate and you will be tolerated; but lose your tolerance and the little things will become like nails on the chalkboard of life. 

YOUR DAY, YOUR WAY

The final and possibly most important discipline of today's mega producer is that they have their priorities straight. First of all, they have adopted to WIN (What's important Now) attitude in how they handle their daily tasks. By properly prioritizing what matters most and leaving the rest for later, they operate in the most efficient mode possible.

More importantly though, is that they have their priorities straight by working to accommodate their life as opposed to their life being dictated by their work. They work with people they like and who also like them. They play hard and work hard too, but they understand that things like family, health, recreation, friends, faith and community are all far more important in the game of life. 

This may seem counter intuitive but trust me, the best Loan Officers work around their life as opposed to their life being dictated by their work. You only have one life to live, so why not live it up and be a big producer too?

PAINT YOUR CANVAS

Your words can be the canvas for your masterpiece or the old newspapers that catch grease and dirt on the floor of the garage. They can encourage and uplift others or they make them angry quicker than a punch in the nose. So choose your words wisely regardless of your status or your mood that day. Your words are the legacy that people will remember you by.

Ultimately, people will not remember you for your accomplishments, but they will remember your style, your words and how you treated them.

So please remember the next time you are tempted to say something not so nice, that we are all fighting battles of some kind. So please be kind no matter who you are, where you are or what your position may be in your personal or professional life. Just a few kind words can change somebody's world forever, but regrettably, mean words tend to be remembered more often.

And especially while you are in the office, please remember the old adage that "it's nice to be important but more important to be nice."

THE CUSTOMER IS KING

Today's top producers have embraced the concept of data base management and taken it to a whole new level. These days the most effective marketing strategies usually revolve around our past clients and sphere of influence as opposed to Realtors and builders.

While Realtors and builders are fantastic referral sources that should never be ignored, the fact is that today more referrals come from your past clients rather than the Realtor than ever before. Whether right or wrong, study after study have shown that a person is more likely to utilize the services of a lender referred by a friend or family member than by their own Realtor. 

This is not just a trend. In the 1990's it was a trend. Now it is full-on reality. As time marches on, your past clients should be marketed to more than ever before to keep you visible to the point where you are first on their minds whenever they think mortgages.

If you treat your customers right, give them more than they expect and stay visible, your past clients will become "Marketeers" that are far more effective than any TV, radio or billiboard ad could possibly hope for.

Today the referral tree that grows from the roots of happy customer is the healthiest tree in the forest. 

LISTEN UP!

Ever since you were a toddler, did you like being commanded to listen? I know I don't and you probably don't either, despite the fact that we can all listen better at times.

Anyone who utters the word "listen" on a regular basis had better be a person in a position of authority and leadership. Otherwise their "listen ups" will soon fall on deaf ears. Well maybe not quite deaf ears, but ears that hear the words "listen" while they are doing exactly that listening. So eventually the command to listen gets tuned out when not used with discretion. 

Why? Because the brain simply rejects it.

The ears hear the word "listen" and the brain thinks what in the name of the Department of Housing and Urban Development do you think I'm doing?

That said please avoid starting all of your conversations or voicemail messages by saying "listen". It is just a waste of breath and a stealth like agitator in any situation where the other person is already listening. 

CUSTOMERS FOR LIFE

Taking care of your customers before, during and most importantly after their loan closes is what generates referrals and will keep your referral tree growing in a healthy fashion.

Other than providing outstanding service staying in touch after the sale, the best way to grow your tree is to look beyond the future immediately with all of your clients. Your knowledgeable and reassuring words that tell them that mortgages are something they never need to worry about again.

Don't come on too strong though. All of this "creating customers for life" stuff can be a little intimidating to a person who just met you. Besides creating is not a verb that suits the customers wants and needs very well. It suits your needs, not theirs. Plus life is a long time and a little longer a time frame than most people envision themselves to be in the market for a mortgage.

Rather than making a customer feel like they may be obligated or stuck with you forever, let them know you are good, you care and that you will be there for them in the future. Because that is what they really want. 

GROWING TREES

Have you ever wondered about people who make their livelihoods owning a tree farm? How strange and scary it must be to have to make almost all of the investment in the beginning and then have to wait years for any return on that investment.

We think all kinds of things...

How do they make it in the early years? How tempting is it to sell the trees a year or two before they reach their optimal size at which they bring the highest price? What if a storm, drought or infestation hits?

The growth of any tree is much like the growth of your business over the years. Outside factors play a role in the growth of the tree but the tree itself and it's own strength and fortitude will dictate it's growth patterns.

You are growing your own tree every day and in the end, if you have the diligence and patience your tree can grow to astounding heights and yield fruit the likes of which you had never imagined.

More on growing your tree tomorrow...

EMPATHY (PART 2)

Your purchasing borrowers are worthy, even needy, of your empathy! In most cases, your borrowers are dealing with one or more of the most stressful things people can have to deal with in their lives. Relocation, job change, divorce, marriage, and change in family size are just some of the challenges facing these people at the time of your contact with them. Not to mention most of them have a home to sell and most of them just want their loan to be approved. By "putting yourself in their shoes" and understanding their issues and making them more eat ease you will do well by them and do well for yourself!

EMPATHY

Empathy- the capacity for experiencing as one's own the feelings of another.

Perhaps the greatest success tool in business and in life is empathy. The ability to understand how others feel and appreciate the fact that only your world revolves around you, is a skill every Loan Officer needs.

It is important to understand how others feel and appreciate the fact that only your world revolves around you, is a skill every Loan Officer needs.

It is important to understand that the Realtor just wants to be paid and have his customers leave happy. It is important to understand that your underwriters have a job to do and it doesn't always mean approving everything that hits their desk. It is important to understand that your processor probably has other flies to work on besides the one you feel is so critical. It is important to understand that your refinancing customer may just want convenience or the lowest payment or the most cash out to pay off their debts and sleep better at night.

Empathy, however, is most valuable to us in dealing with purchasing borrowers because they are the ones who typically need the most empathy.

To be continued...

BE A FRIEND

“Friendship is the hardest thing in the world to explain. It’s not something you learn in school. But if you haven’t learned the meaning of friendship, you really haven’t learned anything.”

— Muhammad Ali

In the ring, Ali floated like a butterfly and stung like a bee, but his best work was outside the ring serving up philosophical wisdom like this on a platter, which the media had an insatiable appetite for.

The key to friendship is that if you want a friend, be a friend. True friendship is a give and take relationship in which both parties benefit from their association with one another. At its very best, friendship represents one soul in two bodies.

Friends are truly one of life's greatest gifts as going through life without them is like trying to dog paddle across the English Channel. It can conceivably be done, but it won't be easy or pleasant.

The bet time to make friends is before you need them and right now your business could probably benefit from more friends!

Tomorrow, we will look at how to find the right ones. 

FRIEND #1

For the past few days we have examined the essence of friends and friendship and why friends are so important in life and in business. What many people don't completely understand though, is that there is a friend out there that most of us don't even consider a friend, but we absolutely should. They are the friend we know won't mislead us at any time under any circumstances.

No matter how many great friends you have, the friend inside you, your inner feelings, is still your most reliable buddy. What they say can always be trusted. Whether the friend inside you says "yes", "no", "be careful", or "go for it" you will know what you should do, whether you act on it or not.

Your inner feelings are more reliable and worthy of your trust than even the best of friends because no one knows you better and nothing can possibly get lost in translation. So trust the friend inside you because it never misleads.

You'll be thankful you did!

A FUTURE MUSEUM PIECE

Several years from now we will look back at these days of 80/20 financing, shake our heads and say "can you believe we got people in with zero down, stated income and marginal credit?"

You read it here first. 80/20 financing for all but the cleanest of borrowers will be a footnote in Mortgage Banking history some day along with the graduated payment mortgage and the 3-2-1 buydown.

The reason is simple economics.

As we discussed here recently, there is no housing bubble that will cause Real Estate values to crash. However, when price appreciation slows or stops in the most heavily populated parts of the country, those 80/20 borrowers who have to sell will be in big trouble thanks to their negative equity and cash poor position. The number of foreclosures and massive associated losses will then dictate a change to more traditional underwriting guidelines.

So enjoy the 80/20s... while they last!

INTEREST WITHOUT RATES

If you want to be interesting, be interested.

The above sentence is the eight-word key to popularity and sales success. So please read it again above and find out how below.

Being interested in whomever you are speaking to is the first key to successful conversations. Put yourself in their shoes and try to see things from their perspective. Adopt a "what can I do for you?" attitude. And above all, try to avoid worrying about what you just said or what you are going to say next. Those voices in your head will make it impossible to really hear what the other person is saying.

A compliment is always nice, too. Just make sure your compliment is specific and genuine or the compliment will fast become a detriment.

Other keys to successful conversations are to smile, make eye contact, show a positive attitude and listen more than you talk.

Please remember that in the end, it is not what you say that truly matters, rather how they felt talking to you that people will remember.

YOU TALK TOO MUCH

“... I can’t believe the things that you say everyday. If you keep on talking baby, you know you’re bound to drive me away.”

George Thorogood first sand those words back in the 80's but it doesn't matter when because talking too much has been an issue for human beings since the day some ape-like being uttered their first words.

When you are in front of your customers, sometimes you talk too much. When you make sales calls, sometimes you definitely talk too much.

We all do it. It's human nature. We all love to talk and our favorite subject is usually ourselves. However, talking too much and especially about yourself is a mistake you can learn to make less.

In the words of the great Dale Carnegie,

“...you can make more friend in two months by becoming interested in other people than you can in two years by trying to get other people interested in you.”

YOU ARE BLESSED

Sometimes we ask, "how are you doing?" and get the response "not too bad".

"Not too bad?" What does that mean?

Does it mean that you would be "too bad" if that latte had cost another twenty five cents or your sniffles got any worse? Or are you so close to being actually "too bad" that you are unable to work? "Not too bad" is truly an instance where perception is nine tenths of the law. Maybe ten tenths.

On the other hand some people answer the same question by saying "I'm blessed". 

You don't have to be religious to be blessed, just happy to be alive will be sufficient if your attitude is right. Whether or not you are blessed is 100% up to you because one definition of blessings is anything fortunate. Therefore, blessings are all around us. 

The fact that you are reading this now means your internet server is operable. And while you may not consider that to be so fortunate, consider the alternative. We have all been there and it is truly unfortunate.

So are you blessed? Absolutely! We are all blessed; it's all in your perspective. At times you just have to look a little harder for what's fortunate in your life. Are you blessed to have that nice pair of shoes and fancy watch you are wearing or are you blessed to have food and shelter?

Blessings are all around us. Enjoy them all!

STAY IN SCHOOL

In most professions more education equals more income. This much is obvious. The not so obvious part is just how valuable an education is if we look at Americans as a whole in non-sales jobs.

All of you parents out there pick your jaws off the floor when you are done reading this and then make a copy for your children.

Using average hourly earning for different professions from the Bureau of Labor and Statistics and assuming the average student attends class 160 days per year and the average worker has a forty year career, we can put a value on every day of school attended. The results follow....

• High School: $1560 per day every day in grades 9-12, compared to a High School drop out.
• 2 Year Grad School: $1128 per day compared to HS graduate.
• Four year degree: a whopping $3288 per day compared to a HS graduate.

And an average doctor will make $2778 per day of grad school plus $3288 per day for their degree and $1560 per day of high school adding up to about $5 million in lifetime earnings over the high school dropout. And these numbers are in today's dollars, not inflation or time adjusted.

That's right. Getting a degree is like paying your kids over $3000 per day on top of their $1560 per day for high school.

And you parents out there think education is expensive. It is, but it's more than worth it!

Tomorrow we will look at a profession in which higher education does not necessarily mean higher income. 

FORGIVE AND FORGET

When we are angry at another person it frustrates.

When we get really angry at someone it brings us down, too.

When we stay angry at someone it is full-on self torture. We lose, they win.

The ability to forgive others misdeeds is one of the great gifts we humans possess because harboring anger will hurt you every time. Forgiveness is not condoning what someone did, it is moving past it for your own good. It is taking control and not letting the misconduct of others affect us in a negative fashion.

Over 2000 years ago a Jewish carpenter taught the world about forgiveness and then gave his life so that we may enjoy the benefits. So lose your anger and try a little forgiveness. It has been liberating people's minds for well over 2000 years!