Submitting a security proposal based on an outside assessment of a property, without any inside information, is like breaking a law you didn’t know existed. Let me explain...
Let’s say you’re on vacation in Miami Beach, FL and you take your pet pig for a walk on sidewalk at the beach and someone sees that you are carrying oranges and asks if they can buy one from you. Doing so would get you arrested, fined and jailed for a month.
Now you’re probably thinking that’s a pretty wild speculation and the likelihood of that happening is pretty slim and yet those laws are still on the books in Miami Beach, FL. You’re probably also wondering, “What does that have to do with my security proposals?”
And the answer is – PLENTY!
Ignorance of the Law = No Excuse!
You see ignorance of the law excuses no one. Violating a law you didn’t know existed still makes you subject to the consequences. If you were planning on taking a pig to Miami Beach and selling oranges on the sidewalk, you can thank me later.
When it comes to the “laws” governing property management, it would help to know what motivates your prospect to actually swtich security providers. How can you align yourself with your prospect’s goals based on those industry “laws”?
What Motivates a Property Manager to Change Security Providers?
First, you should understand the industry standards of how a property manager’s performance and success is measured. There are 4 basic bonuses that are tied directly to their pay:
- Occupancy Bonus: A bonus paid out based on the quarterly occupancy rate of the property. The Bonus is typically paid out when a manager maintains 95.5% Occupancy (industry standard).
- Receivables/Delinquency Bonus: This is based on the percentage of the total rent that is overdue or delinquent. It varies between companies this bonus is commonly based on when 100% of the rent is collected in relation to when it was originally due.
- Lease Renewal Bonus: This Bonus is paid out based on the percentage of the residents/tenants renewing the lease on an annual or biannual basis.
- Budget Adherence: This Bonus is paid out based on the overall adherence to the property budget on a quarterly, biannual, or annual basis.
Understanding these “laws” or common factors affecting a property manger’s wallet and then implementing ways to positively impact these areas will help you establish common goals with your prospect.
Going into a presentation and sharing the goal of helping them reach their bonuses from the outset is a much more engaging way to sell yourself rather than walking in telling them how great you are and what makes you so different from the other dozen or so companies they’ve spoken to recently.
Ask yourself which would be a more effective “elevator pitch”:
“I’ve been in business for 10 years with a background in law enforcement. I hand select only the best guards in the industry. We provide great looking uniforms, electronic daily activity reports, and are always accountable.”
“How’d you like to get your occupancy level to 95.5 and stay there? We work with property managers and utilize software that provides instant transparency and reports that will impress your boss and make you look great.”
I spent year in both property management and security. 90% of security owners and BDMs pitch themselves the same way; by talking about themselves. (Check out Why your Security Proposals Aren't About You). When you talk about how great you are to a property manager you appear just like everyone else. They’ve heard that pitch several times before.
But, by addressing what matters to them you get their attention. Instead of you telling them how you’re exactly like the next guy, you create a desire to question how it is you’re accomplishing what you just claimed, because they WANT that bonus!
Now that you understand the “law” you can’t claim ignorance. Remember, Ignorance of the Law Excuses No One! However, understanding what is important to property managers is only the first step.
The next step is to also understanding what specific issues are standing in between them and their bonuses. In our next blog we will share the top reasons property managers fail to get their full occupancy bonus and how you can have a positive impact on that.
Until next time...