I’m in sunny Florida for the next two weeks on business/pleasure (of course there is always business in there for the tax deductions from our favorite Uncle.)
As I was getting my rental car at the airport, the guy at the counter asked me if I wanted the ultimate coverage insurance or the collision only. What this guy did was use the “yes or yes technique” or the “yes or yes” close. It is one of the best sales techniques around and if you are not utilizing it you are probably losing thousands of dollars worth of deals every year.
When the rental car employee asked me which one I wanted, I had to think for a split second and realized that I didn’t want either of them. This is such a powerful technique because when people are given two choices they automatically think they have to choose one of them. Another example is an owner of a pool hall near my house who uses this technique brilliantly. Every time that I walk into the pool hall he asks me if I would like a beer or would I like an appetizer (I bet 90% of the people choose one or the other and that very few people say neither……….except me. I’m just there for the pool and to take other people’s money. See, I believe in the use of OPM in everything I do, not just in real estate.)
After I have evaluated a property and I know that there is a deal to be had, I ask the seller “Mr. Seller would you like to set up a visit for Tuesday at 7 or Wednesday at 6, which works best for you?”
One of the most important ways that I use the “yes or yes” technique is by presenting multiple offers to a seller. Never, ever, present just one offer to a seller. If you present only one offer to a seller, then it is very easy to say no and you will not close many deals this way. I always present a minimum of two offers and many times three offers. My two offers are going to be a cash offer and a subject-to/lease option (terms) type offer. Even if I know there is no way the seller will do a subject-to, I still present the offer (this is extremely important to remember.) Even if your seller said there is no way you can take over his payments, still give him two offers so that he can choose your cash offer.
So when I am meeting with a seller, I say “Mr. Seller would you like our cash offer of x amount of dollars, or would you like us to take over your payments and you will receive x amount of dollars at closing? Which works best for you?”
There are many more ways to use this technique, such as when setting a closing date: “Mr. Seller, do you want to close on September 22 or September 25”? Or when you are purchasing a real estate course: “Do you want to pay in full, or would you like the easy payment plan of only $19.95 a month for 120 months”?
Well, I am back to the 500 degree Florida heat, sweating to death. So the next time you are meeting with a seller, are you going to present two or three offers?
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Article Author: Jason HansonJason has written 185 articles for us.
Visit Jason's Website: http://www.PrimoCoach.com
Jason R. Hanson is the founder of National Real Estate Investor Month and the author of “How to Build a Real Estate Empire”. Jason specializes in purchasing properties “subject-to” and has purchased millions of dollars worth of property using none of his own cash or credit.
Joshua Dorkin
{ 7 comments… read them below or add one }
This is a great strategy to help someone’s decision making process. It seems like a natural tendency to pick an option when several are given. There is definitely a sweet spot, where choice is not too limited but also not too overwhelming with many options.
In the book, Predictably Irrational, the author has a very interesting chapter on pricing that I think would be beneficial for any entrepreneur to read. The example is a retail stores pricing strategy and how different #’s of options affected choice.
Nice post!
Good marketing technique. It working in any kind of business. But what about if we offer more than two options? Is that going to give better result in deals closing?
This is an excellent post. I was taught this strategy when I was setting up appointments on the phone. This gives the person the option and the ball in their court. Very rarely can someone not make one of those times work.
Plus they feel they are making the choice and it is easier for them to keep the appointment. Good trick of the trade.
A great insight that I know I’m going to try and incorporate, with definiatley two and not three choices. the simpler the better!
Hope Florida treated you kindly.
Interesting…I think I am going to have to use this strategy more! Thank you for the tips! I hope Florida was fun!
Hi Jason,
Good post.
This is an idea, but weirdly, I have the total opposite way of closing a deal than your option and I tell my salesrep to do the opposite too.
In fact, I think that leaving a choice to the customer is the best way for him to leave and think about your offer, go again check what competition offers, ask feelings to other people, etc…
I think that by the end of a face to face (or phone call) negotiation, you should shake the customer’s hand being sure that he agrees with the ONE offer you made him. He must think this is the best deal he’s secured, and he wont find a better option somewhere else. If you let him leave with a choice, it means that the deal is still open to thoughts, and unfortunately to competition and possibly to loss…
Do my thoughts make sense to you?
Cheers,
Ben
I have seen the choice taught and worked. It is probably more effective on less sophisticated buyers. Professionals with any real experience have likely been taught to use it at some point, and so are less likely to go along with it. It is always good to get a yes to your questions, as this sets up a pattern, but too many in row becomes blatantly obvious. I hate being led down an obvious close. If yes-yes does not do it, try the take-away if you think your buyer is just looking to grab more favorable terms. Can you read a Poker Face?