Negotiating Rates with Prospects Earns Profits on The Corporate Housing Network / www.TCHNetwork.com
Posted on 01. Nov, 2009 by Kat Schneider Fotheringham in Blog, Business Travel
I wanted to bring to our Members’ attention a very common occurrence that takes place when valuable prospects visit The Corporate Housing Network. (Oh, and by the way… Happy Halloween!!).
There are, of course, pluses and minuses to most corporate housing sales situations (i.e. you get the deal, but it wasn’t as profitable as you would have liked [however, in this economy, providers are just pleased to have gotten the deal, right?]; or, you get the deal, and you net tremendous profit… but the financial risk and/or vacancy exposure you have had to ensue makes you unable to sleep at night). On TCHNetwork.com, there are handfuls and handfuls of lucrative opportunities to safely anchor some solid deals — one, in particular, comes to mind.
Just a few days ago, The Corporate Housing Network received a “Request for Housing”. It was for a 10 to 12 month lease, in NYC. Now, I will admit, the budget wouldn’t make most of our clients drool. However, I need to stress the following: As you can imagine, individuals and companies will ALWAYS try to get the lowest rate possible — it is human nature. If someone posts a Request with a budget range of $3,000 – $3,500, they will do so even if they know a typical monthly rate for that market is well over that amount. Especially in the economic turmoil most individuals and corporations are confronting, they fear that they will over-price themselves. They echo the following thought process: “What ‘if’ a Provider is willing to offer me a deal (perhaps, on a vacant unit they are trying to unload), but now I’ve just exposed myself, and confessed in black and white that I’m actually willing to pay $2,000 more per month?”. You see what I mean?
Often it becomes the Providers’ job to educate the prospect about typical rates for their market (don’t forget, most are relocating from an entirely different metro, with entirely different rates; they often have no idea what a typical monthly rate is in your market). So, if I were you, bid on any opportunity that comes your way, within your wherewithal. Please do NOT allow the budget ranges that prospects’ indicate make or break your financial success. Didn’t your Dad or Mom ever tell you that EVERYthing is negotiable? Mine sure did. And, they were right (that’s a WHOLE ‘nother story/blog).
Kat Schneider Fotheringham & her Partners launched The Corporate Housing Network (www.TCHNetwork.com) in ‘06; since then, it has revolutionized the short-term, furnished housing industry. The site’s real time availability options solve short term, furnished housing needs all over the world.
