The Language of Luxury

Grace Sabeh, Executive Homes Realty, in jump competition

The mantra these days for luxury real estate marketing and real estate marketing in general is: focus your marketing on the internet.  However, luxury real estate marketing professional should think about other venues of marketing.  Your target market is not on the internet 24/7, and they do participate in all kinds of activities besides surfing the net.  How about sponsoring a luxury event, in your marketplace? Here are two examples of event marketing. One is famous luxury brand that is thinking strategically in a time when retailers and luxury brands are cutting back their budgets.  The other is a market leading luxury real estate professional who followed a hunch with event marketing that paid off very well, indeed.

The Luxury Brand  

Hermes is one of the finest luxury brands known for their uncompromising craftsmanship. They started as a saddle shop in Paris in 1837.  Because of their exquisite work and their royal clientele, they became known as the “saddle makers of kings.”   Since then they have expanded into fashion, lifestyle and home products. 

Recently they announced their return to their equestrian beginnings by sponsoring an equestrian event and competition.  This is a revival of the first jumping event that was originally held in the Grand Palais in 1901.  The event drew the fashionable crowds of Paris and its environs.  By 1957, interest waned and the event was discontinued.  Now, by sponsoring Saut Hermès (saut means jump) they are strategically placing themselves in plain view of their target market.  No doubt, they will issue a limited scarf edition that will honor the event.  This will help to reacquaint existing customers with Hermes’ equestrian roots and reaffirm their loyalty to the Hermès brand. Additionally, Hermès has become involved with a horse race held every summer in Deauville, as well as with an international dressage competition Equita’Lyon, held in Lyon, France.

The Luxury Real Estate Agent

One of our clients listed a home owned by a car collector. Based on the design of the home, the ideal buyer would also a collector. As a strategic move, she rented a billboard that showcased the home at the prestigious Concours D’Elegance car event in Pebble Beach, California, where her target market would be a captive audience.  She not only sold the home to an attendee of the event but she also attracted several leads for other sales.

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Denali mountain aka Mt.McKinley national park service photo

As a luxury real estate marketing professional it is very important to tune into the new psycho graphic trends and changes that luxury consumers are exhibiting during current market conditions.  Understanding the mindset of all-cash buyers, in particular is now an imperative.  They are the ones who determine the purchase prices in today’s market.  Aligning the thinking of your sellers with these viable prospects can significantly increase your volume of business.

Have you noticed that the price of name brand shoes from Italy have increased in price faster than changes in the exchange rate between the dollar and the Euro and also faster than increases in the cost of living itself? Assuming for the sake of this discussion that the cost of labor, materials, marketing and other cost are held constant over the past several years, where is the extra value coming from?

These and many similar questions are now being asked by affluent consumers who are re-examining their own personal values when it comes to purchasing luxury goods and services.

We recently attended the NAR conference in San Diego, California and came away with an interesting insight inspired by an agent from Fairbanks, Alaska.  She mentioned that the highest priced luxury homes in her town are selling in the low $400Ks.  Her personal residence, a six wooded acre estate with a spectacular view of the Denali mountain range is valued at $200K.  And, the market is active, contrary to other markets in the US.

In Alaska you cannot get away with sub par construction given the rigors of the climate. Construction costs are certainly not less than in California, for example, and labor costs are higher because the labor pool is limited.

Clearly, luxury is value added to basic costs of manufacturing (and land n the case of real estate) which makes it completely subjective.  Like all-cash buyers consumers therefore, are beginning to realize that they dictate the terms of the value added rather than sellers now that there is an abundance of choices.  In our previous market we had a false condition of scarcity that was fueled by the competition of easy money and the ensuing escalation of unrealistically inflated prices. The inflated false value was non-sustentative. And, this is what consumers are now re-evaluating.

A top agent in downtown San Diego sold a high-rise condo unit, with sensational views that are permanently unobstructed,  listed at $1.2M two years ago,  for half price.  This all cash buyer determined the value despite the developer’s insistence that there should be a premium of $50K per story, arguing that the higher the floor, the more value it can command.  Was there actually value added between that floor and the one above?  Consumers now make that value call as they redefine luxury on their own terms.

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photo by Shawn Lipowski

Venus de Milo in the Louvre,aka Aphrodite de Milo

Considered One of the Finest Examples of  Classic Greek Sculpture

How important is aesthetics in presenting your luxury real estate marketing services?  The answer is: very important. In fact, aesthetics represents an entire branch of philosophy dealing with the nature of beauty, art, and taste.  The aesthetics of visual presentation can be your “silent salesperson” and play a much bigger part than you may realize in the success of your luxury real estate practice.

There is a whole psychology of color alone; certain colors evoke very predictable emotional responses and personal values judgments of sentiment and taste.  That means you can connect with your target market on a deep emotional level by incorporating the right aesthetics in your personal or company brand.  What are the right aesthetics? The right graphic images are those images that represent your authentic brand.

If you neglect this essential component of brand strategy you are missing an extraordinary opportunity and you are vulnerable to potential competition.  We live in a new online world where you have a nano-second to make a strong first impression and engage your website visitors through the emotional connection of aesthetics. 

Think of walking down Madison Avenue in New York or any major retail street in cosmopolitan cities that feature luxury stores.  Window displays must grab the attention of potential customers or they just walk on by.  Now, think of the speed at which a website visitor, with a single click of their mouse, can move on to your competitor’s site.

So much attention has been paid to driving traffic to your website. You may be spending considerable time and money to get potential buyers and seller there.  But, are you engaging them with the power of aesthetics when they arrive?

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Imagination and creativity is one of the cornerstones of a successful luxury real estate marketing practice. Imitation and luxury really do not belong together. Too often we see luxury real estate professionals copying the branding or marketing strategies of their closest competitors and forgoing the competitive advantage of being original and authentic. It becomes a case of the hot pink plastic flamingo!

One of the most beautiful birds on our planet is the flamingo.  This brightly colored bird caught the imagination of Don Featherstone who designed a plastic hot pink flamingo as a lawn ornament, sold in pairs (one upright the other feeding.) This plastic creation was awarded the “Ig-Nobel Prize for Art (a parody of the Nobel Prize). Plastic pink flamingos have become part of the American pop culture. Original Featherstone’s are marked as such on the bird’s underside.

American Flamingo, Photo by Fritz Geller Grimm

However, copy cats swarmed in and reproduced the flamingos in mass. This caught the imagination of students at the University of Wisconsin who “flamingoed” (the verb) a hill near their campus with over 1000 plastic flamingos on the first day of classes one year. Their prank sparked similar episodes around the country.

Plastic flamingos are now considered in the art world as kitsch. " Kitsch is a German word denoting art that is considered an inferior, tasteless copy of an extant style of art or a worthless imitation of art of recognized value."

Authenticity in personal branding will strike the right chord with your ideal clients.  Phoniness will repel them like plastic pink flamingos. It is not that there isn’t a market for these hollow birds.  It is just a question of knowing who you are and who you want to attract.

Is your personal brand original or is it kitsch?

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Authenticity is perhaps the most important concept in personal branding for luxury real estate marketing professionals. Without authenticity, you live in a masquerade. What is at stake if you forego authenticity? Quite simply, it is your own happiness.

Recently, Andre Agassi published an autobiography in which he admitted to be caught up in a masquerade.  He was forced by his father, who recognized his extraordinary talent, to become a champion in a game that Agassi would come to hate.  In his recent TV interview it was obvious that he suffered a life of quiet desperation during the time when his brand was perceived as being the “rock star of tennis”.  Canon, the camera company, capitalized on his brand image of being a rebel (which was the brand name of one of their models).

Reactions have been mixed from his contemporaries and fans.  Resentments have been expressed by some.  At the root of these resentments is the feeling of having been duped by Agassi’s charade. 

Many people might say that this is a sign of the times. But, there is a deeper lesson to be learned, which is what Agassi, the staunch supporter of education, is now trying to tell the world.  That is, there may be much to gain by living a fake existence, but in the long run it is your own happiness itself that is at stake.

As brand strategists, it is our job to assist our clients to drill down to their core identity, identify what is truly important to them, what they stand for, what their genuine values are, not the values of others. Only then can you make explicit, in the form of a graphic representation and a genuine marketing message, the authentic personal brand. 

We ask our clients what they can do better than anyone else in their marketplace. But, they also must be truly passionate about doing it. An authentic pursuit cannot be one based on seeking the admiration of one’s father or the crowd at large.

It was only when Agassi admitted to himself that he was caught up in a masquerade that he shaved his head and discontinued wearing a wig (his mask).  He chose tennis on his own terms and became passionate about the game.  No one can minimize his extraordinary accomplishments. But, the best accomplishment of all was choosing an authentic life.

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The most successful luxury real estate marketing professionals have understood and acquired a mindset that matches the general state of mind of their typical clients. As a result, they attract more high net worth clients than their competitors do. That way of thinking can be summed up in a single word that sounds even better in Italian than it does in English: ABBONDANZA! (Abundance)

The holiday of Thanksgiving is a celebration of abundance at harvest time that is often symbolized with a cornucopia, the horn of plenty or harvest cone.  Here in Santa Barbara, California we are surrounded by agriculture and are thus very fortunate to have a Farmer’s Market six days a week, all year long. 

This time of year is particularly exceptional.  The market is overflowing with colorful organic fruits and vegetables that are truly a feast for the eyes. Shrimp and Pacific lobster, caught right off the coast, near the Channel Islands, is also abundant this time of year and sold at the market.  Just walking through the market and appreciating the profusion of bright, multi-hued flowers can send you into a state of abbondanza.

Evidence of abundance is all around us if we take the time to appreciate it.  Have you ever just stopped to appreciate having hot and cold running water and water that is safe to drink?  We often take it for granted.   Have you ever noticed the ever present power that runs everything in our homes including our computers?  How do you feel when there is a power outage?

Here are some fun musings about the abbondanza mindset and the cornucopia:

Did you know that a cornucopian is a futurist who believes that continued progress and provision of material items for mankind can be met by similarly continued advances in technology? 

In Greek mythology Zeus was raised by a goat and accidently broke one of its horns.  Feeling bad, Zeus returned her horn with supernatural powers that would give whoever possesses it whatever he or she wants.

Perhaps that is what defines the abbondanza mindset of affluent consumers:  They expect to get what they want. They are more optimistic than pessimistic.  If you want to attract more high net worth clients, isn’t it worth getting yourself in the abbondanza state of mind?  All it takes is the time to appreciate the abundance that is already in your life.  You do not need to wait for Thanksgiving!

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How is your return on investment based on the time you have spent with online social networking from a business perspective? Here is a very specific and focused application of online networking that cuts through the confusion and can yield outstanding measurable results.

In luxury real estate marketing, there is an important difference between professional networking and social networking. It is true that social networking can yield referrals. But, professional networking with synergistic non-competitive professionals within your marketplace is more deliberate and focused when it comes to generating business faster.  

Here is an example.  In your marketplace, are there any luxury homes with pools?  Doesn’t it make sense to meet the heads of the most successful pool maintenance companies in your area? How about taking the heads of the companies that design and install custom closets to lunch? Think of potential home sellers and buyers who reside in their address books!  These professionals are looking for more business too, and you may be able to introduce them to your contacts, as well.

Business networking has been around since commerce began.  The more non-competitive professionals you know the more potential referrals you get, and give. This may sound simple, but it is extremely important because it is easy to lose sight of the fundamentals with all of the hoopla of social networking.  Take the internet out of the picture for a moment and consider this: Who you know has always been key factor in your success.  

So, if increasing the number of quality professional contacts you have is a major key to success doesn’t it make sense to spend more time developing more professional relationships in a focused way, giving more referrals, and staying in contact with your sphere of influence consistently?

Bring the internet back in the picture.  Can you see how using tools like Linked In for professional networking can exponentially increase the number of potential referral sources you have and actually save you time?  It is simply a matter of focusing on finding and developing great relationships with more professionals within your local market. 

Now that you are getting measurable results from deliberate professional online networking, have a field day on social networking sites. Without the pressure of monetary expectations you probably with spontaneously generate referrals from all the new friends you meet.

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Become a One-Woman or One Man Brand

There is no getting around it! To gain the competitive advantage in your marketplace, as a luxury real estate marketing professional, you need to embrace the evolving media of the internet.  To accomplish this you need to delve fully into and understand the concept of syndication both listing syndication and the syndication of YOU.

Those agents who focus on listing properties understand the advantages of syndicating their listings on as many web sites as possible.  That way they achieve maximum exposure for their listings by reaching consumers wherever they begin their property search.

Coldwell Banker, for one, promotes that their listings are now distributed to more than 350 web sites. A single listing can become a workhorse to generate leads.  Point 2 offers listing syndication to dozens of web sites. In both of these cases, once the luxury agent uploads a listing (something that an assistant can easily do) the rest is automatic.

But, what about syndicating YOU?  Personal syndication via blogs, videos, pod casts, articles, e-magazines and more enables you to reach even more potential clients and referral sources, providing you have something that is interesting to show and/or tell.  Being interesting, newsworthy and buzz-worthy is the key. But, you need to make it easy for others to find your publications in a sea of content.

To syndicate yourself via the internet, you need to become a one-woman or one-man brand.  You need to become synonymous with a specific niche or category in which consumers are interested. And, you do not necessarily need to publish content about real estate as long as it is clear that real estate is your “day job”.  It is perfectly OK to follow your “other passion” and become famous for something apart from real estate. 

An example of a one-woman brand in the culinary arena is Clotilde Dusoulier. Her name may not sound familiar, but her blog, Chocolate & Zucchini, has become quite well known. The brand name itself is memorable and buzz-worthy (you just want to tell others about it). The logo and website/blogsite stands out visually and is easy to navigate.  Plus, the content is excellent.

Ms. Dusoulier explains, “It is a good metaphor for my cooking style: the zucchini illustrates my focus on healthy and natural eating: fresh produce, artisanal goods, and a preference for organic and local ingredients. And the chocolate represents my decidedly marked taste for anything sweet in general, and chocolate, glorious chocolate in particular.”  She began writing her blog in September 2003, in both English and French.  Since then she has written best selling cookbooks and received national and international awards.  Her recipes and commentaries on food appear on several web sites. 

So, luxury real estate marketing professionals, we encourage you to take some risks. Discover and explore your passions beyond real estate. Dive into the new world of syndicating YOU! Be sure to read Part 2 of this series for more details.

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Photo by Valerio Capello

As a luxury real estate marketing professional, how can you achieve top of mind status in your marketplace, overnight? One word: Publicity! The right publicity can help you stand out from the crowd.  Here is an example of how one Italian restaurant leveraged public relations to stand out.

Italian restaurants represent the largest population of ethnic restaurants in the U.S.   For example, several years ago the famed Golden Triangle in Beverly Hills (a few short blocks surrounding Rodeo Drive) was home to 18 Italian restaurants.  New York has the most number of Italian restaurants in the world outside of Italy.

Two years ago, Nino Selimaj, who runs six restaurants in New York, introduced the “Luxury Pizza,” which sells for $1,000 for a pie, or $250 for a single slice. This outrageous 12-inch pizza is lavished with crème fraiche, six kinds of the finest caviar available and thin slices of lobster.  It is sold exclusively at Nino’s Bellissima restaurant in New York.   The luxury pizza must be ordered 24 hours in advance. 

Nino’s luxury pizza may seem extravagant, especially today, when high net worth consumers are shying away from conspicuous consumption, at least in public.  But, it is the newsworthiness of the story that is at the core of the real message here.    We recently caught the story on the Travel Channel which means that the story has “legs” (longevity).  It was covered on many TV news features.

For those who travel to New York, having heard about the $1000 pizza, but have not spent a lot of time there, it is very likely that Nino’s restaurants may very well occupy top of their mind when selecting an Italian restaurant. What can you do, as a luxury real estate marketing professional to generate this kind of buzz in your marketplace by leveraging public relations?

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Attention, luxury real estate marketing professionals, who seek market leadership: It is time to toot your own horn and get your story out to the media!

There has never been more opportunity, in the history of mass media, than right now, to become well known and well thought of in your marketplace. That is the goal of public relations. The internet has become the primary source of research for the media. Over 90% of journalists, reporters, TV talk shows, bloggers and media spokespeople turn to the internet every day for research.  They are hungry for good stories. And, the internet makes it easy to spread the word about you via viral marketing (sharing your story with friends, family and colleagues with a couple of clicks).

But, you may ask: “What is my story?” or, “Why would the media be interested in me?” That is  the big challenge. To have a story, you need to be newsworthy. To have a story that triggers word-of-mouth advertising, you need to be buzz-worthy!

Most successful luxury real estate agents are what we call “transaction engineers”.  They have learned all of the fundamentals of marketing luxury homes and/or representing luxury buyers effectively.  They are good negotiators, good listeners, good problem solvers and they have integrity. But, that is only the price of admission, in a highly competitive field.

To stand out and be great, to become top of mind, to become a market leader, to attract the attention of the media, you need to create a story that is worth repeating.  You need to become known as an expert in something so that your opinion is sought by reporters.  And, you need to stand for something (that is distinct from your competition) in the minds of potential clients and referral sources. Nothing is more important in the new era of social media than standing out as the “go-to” agent or company in a specific niche in your marketplace.

 However, you cannot stand around waiting for the media to find you. If you want to surpass the transaction engineers, who just see themselves as competent practitioners, you must view your practice as a business.  Step outside your role as agent and take on the mantle of entrepreneur.  Do not be afraid to craft a inimitable story that demonstrates your expertise in your chosen niche and your superior marketing savvy. Get out there and toot your own horn!  But, do so in a tasteful way. 

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Courtesy of Daniel Boulud

Luxury real estate marketing professionals who seek market leadership should take a lesson from famous chefs and become a celebrity agent in their marketplace.  Here is an example of a French celebrity chef who has created a wonderful buzz-worthy story with his masterful take on the all-American hamburger. 

A while back we happened to catch Martha Stewart mentioning her favorite burger, the DB burger on TV. When we were in Las Vegas we felt compelled to check it out at Daniel Boulud Brasserie at the Wynn Hotel on the Strip. 

Celebrity chef Daniel Boulud has created a version of the classic ground beef burger that is stuffed with red wine-braised short ribs (off the bone) and foie gras. It was a good thing it was not truffle season when we shared the DB burger ($35 at the time--it is now $47) because the price of  DB Burger Royale, his pièce de résistance, with a double helping of fresh black truffles on top, goes for $150.

The DB burger is served on a homemade toasted parmesan bun.  The bun itself was worth the price of admission, as chef Boulud imports the flour, for his breads and pastries, from France.  The side of pommes soufflé was so delicious that we considered waiting for a return trip before ever ordering French fries again.

Daniel Boulud selected an uncontested market niche, the “luxury burger”, and created an inimitable offering with extraordinary value. This process of identifying a niche where there is little or no competition and dominating this market space is a key step in becoming a celebrity as a luxury real estate agent.

If a competing chef offered another version of an extravagant burger as a way to gain recognition, he or she would be considered a “me-too” which is considered old news. Chef Boulud staked his claim first in this category.   It has helped him to become even more famous for his catering in New York and also for his restaurants. But, the buzz created by the famous DB burger has made chef Boulud famous in the minds of potential customers outside of his immediate marketplace—those who may never have heard of him before.

What can you do, as a luxury real estate marketing professional, to stake claim to an uncontested market niche and offer extraordinary value?  What can you do that leverages public relations to create buzz? What story can you create that will enable you to stand out from the crowd and become a celebrity agent?

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World's Largest Gold Bar,250KG Toi Museum, Japan Photo

The gold rush is on for luxury real estate marketing professionals. Be sure to read Part 1 of this series called, Go for the Gold! It is about leveraging the new media tools to tap uncontested market niches. And, also check out Part 2 where we cover the importance of being “follow-worthy” when blogging.

Here, in Part 3 we focus on how to discover your unique golden voice.  Your unique voice distinguishes you from your competition. It attracts followers when you report on the subject about which you are most passionate, i.e., your expertise. When you are consistently “in” your golden voice you unique brand of communicating resonates with your target market and you are more likely to convert your audience into clients or referral sources.

How do you find the unique voice? First, ask yourself these questions:

1. What could get you fired up about each and every morning that you could report on (for inspiration , go see the movie Julie & Julia) 
2. What aspect of your marketplace are you passionate about? 
3. What subject can to be you become know for as an expert that would generate strong interest from those within your marketplace?

It is time to stake your claim to an uncontested market niche and cash in on your passion. Discover your unique voice.   Become a master in the use of the new media tools that allow you to reach your target market easier and faster than ever before,  Sure they are daunting at first. Just get over it! Go for the gold!

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