Champions Love Recessions, Companies that out marketed and outsold their competition during slow times emerge from the recession with increased market shares and better long term profitability.
Studies in September 2008 by the Marketing Planning Institute, Mc Grawhill and Nielsen show that Marketing Investments are more critical in gaining market share during the downturn rather than when business is good. A Mercer company study shows 802 of the top 1000 companies that cut cost on marketing during a downturn couldn't turn profitable for 5 consecutive years after the recession
Here are the 3 ways you can Grow Market Share while others are loosing
1) Marketing Champions attack the market place in a downturn. They Carefully spend marketing dollars on online or email marketing activities where cost of customer acquisition is much lower. During tough times, Marketing Champions deploy counter intuitive strategies to Gain new customers and expand to global markets and expand market share. Pushing off new campaigns or Reducing Marketing is a sure shot way to ride your business to the bottom of the Totem pole. This is the time to make the investment in to Growth while most others are cutting costs.
2) Multi channel marketing solutions including email and online promotions help bring superior ROI at reduced marketing expense. Invest in Web projects to cut administrative and direct mail or telemarketing costs and take products to market faster.
3) Customers have more time now than ever to meet Sales Executives and discuss long term propositions. Some of them might be planning initiatives to develop and launch new products and you could get through to them at the right starting point. Target customers of competitors and particularly those of competitors who have pulled back and reduced their visibility. You can have Top Sales Managers call up top clients and add extra contacts to your clients to expand business within your client base.
Play Hardball, Be Relentless, Lot of Business is up for Grabs, Grab It! The Playing field is less crowded. Many of the competitors take a Survival approach in a Recession. You should take the Trivial approach instead of succumbing to Recessionary Pressures.
Welcome the Recession and Get to work on Grabbing Market share now!!
Saturday, October 18, 2008
Friday, October 17, 2008
The Government Plan Will Work
Accoding to Kevin Budde, Assistant Vice-President of Countrywide, The government's steps will help the economy. They are pumping liquidity into the credit markets, keeping the businesses' doors open allowing them to make payrolls and setting a floor under housing. It seems it can't happen fast enough for the scared buyers.
Here's how I expect the situation to unfold. In a few weeks the Treasury's plan will start up. The government will begin buying up the bank's toxic debt, getting it off their books. The debt will be sold later hopefully at a profit paying back some of the national debt.
By Thanksgiving it will be clear how it's working. This process is known as reverse auctions. If these reverse auctions aren't enough to get the banks lending again, the Treasury will implement their second phase of buying bank's shares to provide the liquidity needed to keep the wheels turning.
By year-end, the credit markets should be functioning better. Commercial paper will be moving again. Long-term lending, corporate bonds will start picking up. It will take more months to return to normal however. The measures taken by the Federal Reserve, Treasury Department and central bankers around the world will avoid the feared major economic downturn.
The New York Times ran an article this morning with an interview of Warren Buffet. Mr. Buffet said he has begun buying U.S. stocks in his personal account which prior to yesterday did not contain stocks, only bonds. He stated he has a minimum one year window time frame. The record shows Mr. Buffet has only stated this previously twice since 1972 and he was 3 to 6 months early. His philosophy is sell when everyone is greedy and buy when everyone is fearful.
The fourth quarter of this year and the first quarter of next year will remain difficult times for both the stock market and the housing industry. However, in January the lending process will be showing the steps being taken now are working and come Spring of 2009 sales of existing homes will begin a steady and consistent increase in volume as the fear diminishes. It can't seem to happen fast enough with what we have been through and are currently experiencing. January will begin my 34th year in the mortgage lending industry.
There is a light at the end of the tunnel and I am anticipating many good years to come. I wanted to share a little insight. I hope it help clarify things. Thank you. Kevin Kevin BuddeAssistant Vice-PresidentPrivate Client GroupCountrywide Bank, FSB
Here's how I expect the situation to unfold. In a few weeks the Treasury's plan will start up. The government will begin buying up the bank's toxic debt, getting it off their books. The debt will be sold later hopefully at a profit paying back some of the national debt.
By Thanksgiving it will be clear how it's working. This process is known as reverse auctions. If these reverse auctions aren't enough to get the banks lending again, the Treasury will implement their second phase of buying bank's shares to provide the liquidity needed to keep the wheels turning.
By year-end, the credit markets should be functioning better. Commercial paper will be moving again. Long-term lending, corporate bonds will start picking up. It will take more months to return to normal however. The measures taken by the Federal Reserve, Treasury Department and central bankers around the world will avoid the feared major economic downturn.
The New York Times ran an article this morning with an interview of Warren Buffet. Mr. Buffet said he has begun buying U.S. stocks in his personal account which prior to yesterday did not contain stocks, only bonds. He stated he has a minimum one year window time frame. The record shows Mr. Buffet has only stated this previously twice since 1972 and he was 3 to 6 months early. His philosophy is sell when everyone is greedy and buy when everyone is fearful.
The fourth quarter of this year and the first quarter of next year will remain difficult times for both the stock market and the housing industry. However, in January the lending process will be showing the steps being taken now are working and come Spring of 2009 sales of existing homes will begin a steady and consistent increase in volume as the fear diminishes. It can't seem to happen fast enough with what we have been through and are currently experiencing. January will begin my 34th year in the mortgage lending industry.
There is a light at the end of the tunnel and I am anticipating many good years to come. I wanted to share a little insight. I hope it help clarify things. Thank you. Kevin Kevin BuddeAssistant Vice-PresidentPrivate Client GroupCountrywide Bank, FSB
Thursday, October 9, 2008
11 Via Cartama - Bank Approval at $1,029,000!!
We have formal bank approval for this short sale at $1,029,000. The is located at the end of a cul-de-sac in one of Talega's most upscale neighborhoods! Call Sam Smith at 949-444-1901 for more details on this home. More photos can be seen on our website: http://www.bclh.com/ or LuxuryRealEstate.com
Wednesday, October 8, 2008
Smart Moves to Make After the Fed Decision
The Federal Open Market Committee, or FOMC, surprised us with by cutting the federal funds rate by 50 basis points after leaving it unchanged at the last three meetings. So what moves should you make with your mortgages, home equity, auto loans, CDs and money market accounts, and credit cards?
Mortgages:
Keeping track of the recent ups and downs of the U.S. financial system is enough to give homeowners and others a nasty case of whiplash. America's biggest financial institutions are struggling; hence, the great volatility in the stock market," says Bob Walters, chief economist at Quicken Loans.
All this financial tumult prompted the Federal Reserve to act with an emergency 50 basis-point reduction in the target federal funds rate Oct. 8. The announcement was a surprise, as it came in advance of the Fed's next scheduled meeting Oct. 28 and Oct. 29.
However, the rate cut itself is unlikely to impact mortgage rates significantly, as cuts in the federal funds rate do not directly affect mortgage rates.
This is especially true of fixed-rate mortgages. While it's true that such mortgages sometimes decline in the wake of a Fed rate cut, they are just as likely to rise.
By contrast, adjustable-rate mortgages can be a bit more sensitive to Federal Reserve rate decisions. Many ARMs are pegged to the London Interbank Offered Rate, more commonly known as LIBOR. LIBOR rates usually closely track the federal funds rate. So reductions in the federal funds rate often result in lower payments for homeowners with ARMs. This is one reason why people traditionally have forsaken the safety and security of a fixed-rate mortgage for the greater volatility of an ARM. Good candidates for ARMs typically include people who live in their homes now, but soon expect to move -- such as retirees considering relocation, empty-nesters thinking about downsizing and workers in temporary job assignments who expect to move soon.
Adjustable-rate mortgages also may make sense for somebody who has "a lot of money in the bank and a pretty secure job and (who) isn't afraid to take on the uncertainty that his rate and payment could change in the future as a tradeoff for a lower rate and payment today," Walters says. However, today's economic turmoil has made ARMs a bit less attractive than normal. The spread between LIBOR and the federal funds rate has become uncharacteristically wide, meaning many people with ARMs will not see their mortgage costs fall as they typically would after a Fed rate cut.
In addition, the spread between ARMs and fixed-rate mortgages has been paper thin, negating the major traditional cost advantage of choosing an ARM. For now, homeowners will have to weigh the risks and benefits of choosing an ARM and decide for themselves which option is best.
Take-Away:
After leaving rates unchanged for several months, the Federal Reserve surprised many observers by cutting the target federal funds rate by 50 basis points. The move is thought to be a reaction to recent turmoil in the world's financial markets. The central bank's rate cut will not have a direct impact on mortgage rates. Rates may fall, but they could just as easily rise.
Home Equity:
A lower federal funds rate is good news for borrowers who use home equity lines of credit. Rates on HELOCs typically are tied to the prime rate, which moves in tandem with the federal funds rate. So, if you need to borrow money, a HELOC may be your best option. Not only is the cost of borrowing now cheaper, but the interest associated with this type of borrowing is tax-deductible. However, homeowners would be wise to borrow carefully. All signs point to coming economic hard times, and any type of debt can be toxic in such circumstances.
Bob Walters, chief economist at Quicken Loans, counsels American consumers hoping for a quick rebound of the financial system to be patient. "I don't think there is going to be some kind of a silver bullet," he says. "Some of this is just going to flat out take time."
Take-Away:
The Federal Reserve cut interest rates after leaving them unchanged for months. That means borrowing costs on home equity lines of credit -- which move in tandem with changes in the federal funds rate -- should fall. The uncertainty surrounding the fate of the financial system -- and the U.S. economy -- means Fed rate hikes are exceedingly unlikely in the near future.
For this reason, HELOC borrowers should expect costs to remain low for some time.
Meanwhile, changes in the federal funds rate do not directly impact existing home equity loan rates (which remain fixed) or rates on new loans. However, these rates have been climbing in recent months and may continue to do so.
Auto Loans:
Shopping for an auto loan is the same no matter what the Fed does. To get the best deal, show up with a very good credit score and shop around. Randy Ellsperman, chief financial officer at FirstAgain.com, an Internet-based lender, suggests checking online before going to the brick-and-mortar banks.
Though slightly self-serving, it's good advice no matter which online lender you decide to visit. The applications are quick and offer an almost instant answer for borrowers. "Determine what your options are. Don't just go to one bank, don't just go to the dealership and take their interest rate," says Ellsperman.
"You would be forearmed to know what your options are, and a lot of companies will approve you prior to completing the auto transaction, so then you have at least one benchmark," he says.
Online or otherwise, an excellent credit score will net the best loan but a hefty down payment will also help. Buyers with less than perfect credit reports will almost definitely need to put down a significant down payment.
Take-Away:
Just like getting pre-qualified for a mortgage, shopping first for the loan will allow buyers to get an idea of the rates available to them as well as the amount of money a lender is willing to offer.
"The whole auto purchase is an exciting and emotional process. It's going to be one of the largest purchases someone makes," says Mike Celuch, chief financial officer of Paragon Federal Credit Union in New Jersey.
"That's why it's better to take time to know what rate they can qualify for and how much they can actually afford before they get too excited or emotional. At the dealer they will be a lot more comfortable making the purchasing decision on that car," he says.
Copyrighted, Bankrate.com. All rights reserved.
Mortgages:
Keeping track of the recent ups and downs of the U.S. financial system is enough to give homeowners and others a nasty case of whiplash. America's biggest financial institutions are struggling; hence, the great volatility in the stock market," says Bob Walters, chief economist at Quicken Loans.
All this financial tumult prompted the Federal Reserve to act with an emergency 50 basis-point reduction in the target federal funds rate Oct. 8. The announcement was a surprise, as it came in advance of the Fed's next scheduled meeting Oct. 28 and Oct. 29.
However, the rate cut itself is unlikely to impact mortgage rates significantly, as cuts in the federal funds rate do not directly affect mortgage rates.
This is especially true of fixed-rate mortgages. While it's true that such mortgages sometimes decline in the wake of a Fed rate cut, they are just as likely to rise.
By contrast, adjustable-rate mortgages can be a bit more sensitive to Federal Reserve rate decisions. Many ARMs are pegged to the London Interbank Offered Rate, more commonly known as LIBOR. LIBOR rates usually closely track the federal funds rate. So reductions in the federal funds rate often result in lower payments for homeowners with ARMs. This is one reason why people traditionally have forsaken the safety and security of a fixed-rate mortgage for the greater volatility of an ARM. Good candidates for ARMs typically include people who live in their homes now, but soon expect to move -- such as retirees considering relocation, empty-nesters thinking about downsizing and workers in temporary job assignments who expect to move soon.
Adjustable-rate mortgages also may make sense for somebody who has "a lot of money in the bank and a pretty secure job and (who) isn't afraid to take on the uncertainty that his rate and payment could change in the future as a tradeoff for a lower rate and payment today," Walters says. However, today's economic turmoil has made ARMs a bit less attractive than normal. The spread between LIBOR and the federal funds rate has become uncharacteristically wide, meaning many people with ARMs will not see their mortgage costs fall as they typically would after a Fed rate cut.
In addition, the spread between ARMs and fixed-rate mortgages has been paper thin, negating the major traditional cost advantage of choosing an ARM. For now, homeowners will have to weigh the risks and benefits of choosing an ARM and decide for themselves which option is best.
Take-Away:
After leaving rates unchanged for several months, the Federal Reserve surprised many observers by cutting the target federal funds rate by 50 basis points. The move is thought to be a reaction to recent turmoil in the world's financial markets. The central bank's rate cut will not have a direct impact on mortgage rates. Rates may fall, but they could just as easily rise.
Home Equity:
A lower federal funds rate is good news for borrowers who use home equity lines of credit. Rates on HELOCs typically are tied to the prime rate, which moves in tandem with the federal funds rate. So, if you need to borrow money, a HELOC may be your best option. Not only is the cost of borrowing now cheaper, but the interest associated with this type of borrowing is tax-deductible. However, homeowners would be wise to borrow carefully. All signs point to coming economic hard times, and any type of debt can be toxic in such circumstances.
Bob Walters, chief economist at Quicken Loans, counsels American consumers hoping for a quick rebound of the financial system to be patient. "I don't think there is going to be some kind of a silver bullet," he says. "Some of this is just going to flat out take time."
Take-Away:
The Federal Reserve cut interest rates after leaving them unchanged for months. That means borrowing costs on home equity lines of credit -- which move in tandem with changes in the federal funds rate -- should fall. The uncertainty surrounding the fate of the financial system -- and the U.S. economy -- means Fed rate hikes are exceedingly unlikely in the near future.
For this reason, HELOC borrowers should expect costs to remain low for some time.
Meanwhile, changes in the federal funds rate do not directly impact existing home equity loan rates (which remain fixed) or rates on new loans. However, these rates have been climbing in recent months and may continue to do so.
Auto Loans:
Shopping for an auto loan is the same no matter what the Fed does. To get the best deal, show up with a very good credit score and shop around. Randy Ellsperman, chief financial officer at FirstAgain.com, an Internet-based lender, suggests checking online before going to the brick-and-mortar banks.
Though slightly self-serving, it's good advice no matter which online lender you decide to visit. The applications are quick and offer an almost instant answer for borrowers. "Determine what your options are. Don't just go to one bank, don't just go to the dealership and take their interest rate," says Ellsperman.
"You would be forearmed to know what your options are, and a lot of companies will approve you prior to completing the auto transaction, so then you have at least one benchmark," he says.
Online or otherwise, an excellent credit score will net the best loan but a hefty down payment will also help. Buyers with less than perfect credit reports will almost definitely need to put down a significant down payment.
Take-Away:
Just like getting pre-qualified for a mortgage, shopping first for the loan will allow buyers to get an idea of the rates available to them as well as the amount of money a lender is willing to offer.
"The whole auto purchase is an exciting and emotional process. It's going to be one of the largest purchases someone makes," says Mike Celuch, chief financial officer of Paragon Federal Credit Union in New Jersey.
"That's why it's better to take time to know what rate they can qualify for and how much they can actually afford before they get too excited or emotional. At the dealer they will be a lot more comfortable making the purchasing decision on that car," he says.
Copyrighted, Bankrate.com. All rights reserved.
Thursday, October 2, 2008
Senate Approves Plan To Help Stabilize Nation's Financial Markets
The Senate last night approved a revised version of the Emergency Economic Stabilization Act of 2008 in a 74 to 25 vote, clearing the way for full consideration by the U.S. House of Representatives. The House voted down an earlier version of the plan on Monday.The revised plan, which is designed to shore up the nation's financial markets, includes a temporary one-year increase in Federal Deposit Insurance Corp. (FDIC) caps for bank and credit union accounts. The cap increases are critical because they increase the funding backstop the public relies upon should their banks fail. The plan also includes extensions on several business tax breaks and adjustments to the alternative minimum tax (AMT) for individual taxpayers. These, as well as the FDIC cap changes, are amendments lawmakers believe will help bolster a smooth approval by the House.
Wednesday, October 1, 2008
5 Tips for Selecting The Right Luxury Real Estate Agent
5 Tips for Selecting the Right Luxury Real Estate Agent
You've made the decision to buy or sell a luxury home, and now it's time to select the real estate professional who can best assist you. Not all good agents operate effectively in the upper-tier market. It is a market segment that requires special competencies. Here are some general guidelines for choosing an agent to help you in the upper-tier residential marketplace:
1. Look for market knowledge and real estate skills. Not only should your agent know the city or area you are interested in, he or she should be knowledgeable about the price range you've targeted. A luxury home expert should be able to discuss the amount of inventory available, the average number of days a property is on the market before going under contract, the number of sales in the last 90 days, and the list to sales price ratio, all by price range. The more knowledgeable the agent is about the upper-tier market, the more valuable he or she can be as a resource for you. When you schedule your first meeting with a prospective agent, let the agent know you want an overview of the market conditions based on price range. A solid track record of success is also a clear indicator of market savvy. Don't choose an agent based on country club membership, the kind of car he or she drives, or similar criteria. Do choose your agent based on the answer to the question, "Does this agent have the skills and resources necessary to help me accomplish my real estate goals?"
2. Notice special luxury affiliations and designations and ask what they mean. To zero in on professionals who specialize in the fine homes and estates market, look at an agent's memberships and designations. Some agents are members of organizations specific to the luxury market such as The Institute for Luxury Home Marketing, which awards an international designation (Certified Luxury Home Marketing Specialist or "CLHMS") to agents who meet education requirements and have a track record of success. Some real estate companies offer special recognition to their associates who work successfully in the luxury market. Some firms have special luxury marketing programs available to their agents. All these memberships, affiliations and credentials add credibility.
3. If you are selling, ask that the listing presentation include a specific marketing plan for your property. Don't assume that the best marketing plan is always the most expensive. Listen to why the agent has included each element of the plan. Be sure that your home will be promoted Online as well as in more traditional ways. If the home is very expensive or the buyer is likely to come from outside the area, a luxury home magazine may be an important part of the plan. Recognize that the marketing plan in a fast-moving sellers' market will differ from the plan to be implemented in a slower buyers' market. Your agent should outline his or her proposed plan and explain it. Look at the quality of the marketing pieces the agent has used in the past as part of your evaluation process. Some agents will have access to special luxury home marketing systems with special marketing pieces that add value to their toolkit.
4. If you are selling, don't let an agent "buy" your business. Choosing an agent based on the highest suggested list price is counterproductive if the house is overpriced. The agent doesn't set the price-the marketplace does. If your home goes on the market as an overpriced listing, agents and their prospects will quickly move on to other properties that offer more value relative to cost. Will they come back if the price goes down? In many cases, no.
5. Rapport and clear communication are important. Buying and selling can be stressful. Choosing an agent with whom you communicate clearly will help simplify the process. Be sure he or she understands your needs and expectations and that you understand the process and the agent's expectations of you. In short, specialized knowledge + quality tools + clear communication = an agent who can deliver the results you want in the luxury home arena.
You've made the decision to buy or sell a luxury home, and now it's time to select the real estate professional who can best assist you. Not all good agents operate effectively in the upper-tier market. It is a market segment that requires special competencies. Here are some general guidelines for choosing an agent to help you in the upper-tier residential marketplace:
1. Look for market knowledge and real estate skills. Not only should your agent know the city or area you are interested in, he or she should be knowledgeable about the price range you've targeted. A luxury home expert should be able to discuss the amount of inventory available, the average number of days a property is on the market before going under contract, the number of sales in the last 90 days, and the list to sales price ratio, all by price range. The more knowledgeable the agent is about the upper-tier market, the more valuable he or she can be as a resource for you. When you schedule your first meeting with a prospective agent, let the agent know you want an overview of the market conditions based on price range. A solid track record of success is also a clear indicator of market savvy. Don't choose an agent based on country club membership, the kind of car he or she drives, or similar criteria. Do choose your agent based on the answer to the question, "Does this agent have the skills and resources necessary to help me accomplish my real estate goals?"
2. Notice special luxury affiliations and designations and ask what they mean. To zero in on professionals who specialize in the fine homes and estates market, look at an agent's memberships and designations. Some agents are members of organizations specific to the luxury market such as The Institute for Luxury Home Marketing, which awards an international designation (Certified Luxury Home Marketing Specialist or "CLHMS") to agents who meet education requirements and have a track record of success. Some real estate companies offer special recognition to their associates who work successfully in the luxury market. Some firms have special luxury marketing programs available to their agents. All these memberships, affiliations and credentials add credibility.
3. If you are selling, ask that the listing presentation include a specific marketing plan for your property. Don't assume that the best marketing plan is always the most expensive. Listen to why the agent has included each element of the plan. Be sure that your home will be promoted Online as well as in more traditional ways. If the home is very expensive or the buyer is likely to come from outside the area, a luxury home magazine may be an important part of the plan. Recognize that the marketing plan in a fast-moving sellers' market will differ from the plan to be implemented in a slower buyers' market. Your agent should outline his or her proposed plan and explain it. Look at the quality of the marketing pieces the agent has used in the past as part of your evaluation process. Some agents will have access to special luxury home marketing systems with special marketing pieces that add value to their toolkit.
4. If you are selling, don't let an agent "buy" your business. Choosing an agent based on the highest suggested list price is counterproductive if the house is overpriced. The agent doesn't set the price-the marketplace does. If your home goes on the market as an overpriced listing, agents and their prospects will quickly move on to other properties that offer more value relative to cost. Will they come back if the price goes down? In many cases, no.
5. Rapport and clear communication are important. Buying and selling can be stressful. Choosing an agent with whom you communicate clearly will help simplify the process. Be sure he or she understands your needs and expectations and that you understand the process and the agent's expectations of you. In short, specialized knowledge + quality tools + clear communication = an agent who can deliver the results you want in the luxury home arena.
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