Wednesday, July 20, 2011

Lesson from a banana sale...condition is the primary thing.

Credit to Jerry Bronstrup, President of Bristol Restoration. Please check out our links to see WHAT WE CAN DO FOR YOU AND YOUR CLIENTS. THANK YOU.Via

Contact by email: skannier@bristolrestoration.com 

Call:(661) 254.1812 (for info)

I never thought about buying a banana at a gas station. I was just paying for gas, but noticed the freshest banana I had ever seen at the counter. Just a single banana. Perfectly ripe. I love bananas but usually miss out on the "perfect timing" of eating a banana in its prime. I took advantage of the opportunity, and began eating it while I waited for my change.
Hold that banana thought...
"Buyers in this market are not concerned about property conditions. They are more concerned about buying the property than the condition of the property. Property conditions are secondary, if considered at all." Yes, a Realtor actually told me this yesterday.  "IF CONSIDERED AT ALL."  Am I missing something?
So, using some analogies:
People buying cars are more concerned about buying a car than the condition of the car.
People buying a television are more concerned about buying a television than the condition of the television.
People buying shoes are more concerned about buying shoes than the condition of the shoes.
People buying bananas are more concerned about buying the bananas than the condition of the bananas.
Am I the one going bananas here, or maybe I am not on the same page... but, isn't buying more than "buying?"
...going back to banana sales.
I have been buying bananas for the past year at the same gas station. Yes, a gas station. I never buy them at the grocery store anymore. Just a single banana. Ripe and delicious. The condition of the banana is the most important aspect to buying the banana. Who cares about the price if it's not a good banana? if its too brown..will have to use it for banana bread. Too green... not enjoyable and makes me sick. The condition is everything. When it comes to buying bananas, for me, condition is the primary thing.
Now, being the banana connoisseur that I am, I decided to research some on banana sales and this is what I found, interestingly enough...
In 2005, Chiquita began researching ways to sell more bananas. They found that by keeping individual bananas fresh longer they can be sold in more places and not just in bunches at supermarkets by using convenience stores, gas stations, coffee shops, drugstores and other outlets to increase revenue. They believed they could raise profits if people could buy a single, perfectly ripe banana off the shelf, as they would a candy bar or a bag of chips.
At Chiquita's packaging plants, workers now hand-pick the bananas heading to convenience stores and other fast-food outlets for their ideal size, color, shape and ripeness. The single bananas are laid on top of one another in boxes covered with a semipermeable membrane that allows oxygen to pass through but controls the flow of carbon dioxide to delay ripening until the box is opened.

"This allows shops to sell bananas at the perfect stage of ripeness, that look absolutely yummy — and they can sit on a retailer's shelf and not go mushy and not go ugly," said Gregg Bauer, a vice president at Gen3 Partners.
"If you can come up with a way to make food fresher, it has a ready and willing market," he said.
Lesson learned. Buying is more than buying.
As it is with bananas, so it is with houses.
Caldwell Banker Real Estate did a survey of its brokers last year, the company found just 7 percent who say they’re encountering novices who are willing to look for fixer-uppers to buy at a lower price and renovate. Instead, 81 percent say their first-time buyers want their houses to be in ship shape from Day One.
Do you still think condition is secondary, or not considered at all?
I think it's of prime concern for buyers. In fact, as an agent, focusing on condition can be a great marketing tool in this market. An agent who understands market conditions and house conditions will have an edge over those just looking to get a deal in escrow.
How many times have you taken your buyers out and they complain about the "brown bananas" in the market? It's time to step up and provide solutions.
I asked a lender who works out of a large brokerage if any of the agents are using the 203k prgram. He told me that most agents are not aware of the program. We even recently started to offer in house financing for rehabs and repairs. How many agents are researching these solutions for their clients? The bottom line, condition is important, very important.... and buying is more than buying.
Here's to fresh bananas... and houses!

No comments:

Post a Comment