Maintaining Momentum of Vendors
5 Apr, 2023
By Apollo Auctions
The changes in market conditions have a lot of vendors questioning if now is the best time to sell. As we approach the Easter long weekend, we have noticed a hive of activity with Apollo Auctions national clearance rate delivering 63.1% this past week. Melbourne outperformed other areas of the country, delivering a 73.08% clearance rate across the month of March.
As media headlines speculate turbulence in the market, our experience directly from the market shows that vendors and buyers are eager to exchange on auction day. Our clients that are successful in transacting, on or before auction day are putting in the work to prepare both vendors and buyers.
It’s important to acknowledge the level of anxiety caused by an uncertain economic future. While interest rate hikes have been put on hold for the first time since November 2022, this does not dispel the tumultuous conditions they are experiencing. So how can we continue momentum in the campaign? Instead of creating further anxiety for vendors in an already stressful situation, why don’t we acknowledge the genuine concern they’re experiencing. Thereby validating their feelings which establishes trust. Once there’s a level of equilibrium, you can then look to paint the whole picture as it relates to them and their goals.
When entering into any conversation with a vendor it is vital to be confident with your current market numbers. Providing value to the vendor includes knowing your market’s circumstances back to front, as well as a firm grasp on inflation and how it is affected by the Reserve Bank of Australia measures and why it’s necessary will give you more credibility in the eyes of those who are looking to navigate the stormy seas soon. Focus the conversations on their goals rather than a deviating market. The more you do that, the more likely you’ll get a greater buy-in to any suggestion of going to market, more so you will have justifiably made going to market the more reasonable option.
Ultimately, if you can show them a path that they can walk based on their goals and current circumstances that they understand, then they’ll still walk forward
With each component of your presentation, Andy recommends that you follow “The 5 C’s” that will help you to bring vendors into a “can-do” state of mind:
- CLARIFY what their understanding is of that component.
- Provide them with the CONTENT around the topic.
- Put the information into the CONTEXT of their situation.
- COLLABORATE with them around possible solutions, getting their thoughts on your recommendations and providing logic to support any suggestion.
- CONFIRM that they understand and agree that the course of action is right for them in this market, given their goals.
If you do that at each juncture, you’re way more likely to alleviate any added anxiety that your potential vendors are likely to be feeling, given the noise that surrounds them.