Hello and welcome to this new video per day. Today we are going to talk about the fatal mistake not to make if you are a concierge with your prospects, owners of apartments for whom you could use the property. If you currently have several prospects with whom you are talking, if you are a seasonal rental concierge and you want to develop, then you are on the right video. Stay with me, because we're going to talk together about this mistake that you absolutely must not make to avoid it causing you harm later, in the management of your business with its owners. And both for the good performance of your concierge service, but also for the good tranquility of your relations between you and the owner because no one wants to have dissatisfied owners. No one wants things to go wrong, so don't make this mistake.
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So I'm going to start on this subject to give you the error which, in our opinion at J'poster Complet, can really cause you harm in your commercial relations with your prospective owners. This error, I will give it to you right away, I will not make a much more extensive suspense. So what is this error? For us, the error that is most detrimental today at the stage of negotiation with a prospective apartment owner is wanting, in 100% of cases, to give an estimate of the average price that we can expect from a good.
This is something that is done by certain basic concierge services, constantly saying: Here is the average price, here is the turnover that we can expect for your property. Except that, the fact of doing this systematically, in a truly systematized way, that is to say to each prospect, we give an estimate, that has consequences which are potentially very harmful. And we, at J’annonce Complet, had two schools in particular; that's why I'm talking to you about it where we realize that in fact at the beginning, there is simply this reflex of giving the estimate of the potential of a property and we at the end of the chain, we realize months, years later, in fact this behavior which seemed harmless from the start, subsequently potentially creates a lot of problems and a lot of dissatisfaction.
Exactly, what are the risks that systematizing this management of the commercial relationship with the owner may present? The number 1 risk of this is putting a number, an amount, in the customer's mind. Whether it is an amount in price, whether it is an amount in expected turnover, and, subsequently, not being completely free to do one's work. So, as we are in charge of pricing, we obviously feel this point very strongly because as a result, there are many owners for whom, once we have given an amount, it is very difficult in their minds, especially if they are owners who, unlike us, are not necessarily professionals in the field. They have properties, they wanted to use them for seasonal rental, but they do not necessarily know the ins and outs of the market and in particular, they do not necessarily know this notion of seasonality. That is to say that they were told an amount of 60 euros per night, they expect that all year round it will be 60 euros per night. Except that in reality, sometimes we will put the prices perhaps a little lower than that in weak periods and sometimes we will have prices which will be higher or even much higher because the period allows us to do so. .
If from the start, we put in the mind of a client who does not necessarily know much about seasonal rental and that is not at all a fault; that's why he trusts us to exploit his property, so that's very good; but suddenly if we put an amount in his mind, the problem is that it will perhaps be, depending on his temperament, difficult for him to understand that sometimes we put prices which are lower. So, what does that generate? In fact, this will subsequently generate an owner relationship which will be on the one hand restrictive for you as a concierge because as a result it gives additional constraints to respect because in the end the owner does not want to go down. below such price etc.
And then it also gives rise to a relationship of dissatisfaction, an owner who doesn't understand, who has the impression that he was sold something... in all good faith in his mind, he says to himself that I was sold this price and then it's because they do. So in fact, it seems completely astonishing to him and it suddenly creates an atmosphere of dissatisfaction and this dissatisfaction of the owner often transforms; how: it turns into over-surveillance. So the word is perhaps not super clear but in an excess of surveillance, that is to say that you will have an owner who will be really constantly looking at the advertisements, looking at the prices, is it selling, is it -what it doesn't sell and who will write to you but why in January did you put such a price, how come my cleaning costs are such an amount etc...
I think that this situation must speak to some of you; don't hesitate to tell me if this is something that resonates with you because it's part of the reality and honestly we're not in a situation where we're going to particularly blame the owner or particularly blame, blame us. That is to say initially, it starts with a good intention but in fact the problem is that it can cause this kind of harm later. And then the other point which is also damaging in this is that in fact it can potentially immediately put you in a situation of failure and no one wants that.
Like any good concierge service, as I said earlier, it wants to satisfy both its travelers and its owners. That's why we get up in the morning, obviously we really want to give full satisfaction with the time, the expertise and what we give on a daily basis. So in fact, immediately put yourself in a position of failure; I'll give you a concrete example: giving an estimate of the potential of a property and six months after having Covid, obviously this estimate of the potential can be a little complicated to achieve in a circumstance like this.
I'll give you another example, perhaps a little less obvious, but give an estimate of the potential of a property and finally inside the property, we had to have a coffee maker, we had to have household appliances and the owner is slow to make them available to us, well it's certain that during this period it's still difficult to achieve the same performances as if we had a property that is fully equipped because that gives us bad marks and that's it. is more difficult. So, for all these reasons, if we systematize as I told you at the beginning, if we really systematize the fact of giving an estimate of the potential of the property in average price and turnover for all the prospects with whom you exchange , we actually take the risk of having this kind of situation later.
So there, you say for my part, I only give this estimate if the owner requests it but explaining clearly that this price will vary depending on the season and demand etc. And that this price will not be fixed if not complicated indeed. So it's true that it's a good thing to give meaning, so I'm going to talk right after about what we are recommended to do at J'poster Complet in this context. And another point which is quite problematic is that we have observed that there comes a stage where the owner also disconnects from the market. So we can find ourselves and there we have had cases in fact in a Covid situation, in fact we can find ourselves in situations where an owner who, for example, managed before is very alone, so he rather had a fairly detailed knowledge of this that was happening and could be a good ear for market realities.
If the owner entrusts us with his property, obviously from the moment there is trust created, we work correctly etc. The owner will completely disconnect from the market, he will no longer keep an eye on the competition, he will take care of it more, he is confident, he sees that things are working. So he is completely disconnected from market realities. We, obviously, remain in the market and in this situation, we can also have cases and we have had cases in a Covid situation or in fact the problem is that the owner is so uncorrelated with the situations market than when we explain to him that in fact the market has completely fallen and that we will have to have prices a little more attractive because otherwise it will just be complicated to remain 200% more expensive than everyone else, well in In these cases, to our great surprise, we can have owners who are always reluctant in fact.
And for us, it is so obviously obvious because we know how disastrous the consequences of Covid have been in certain cities, meaning that finally, we have examples of cities in which competition has actually fallen but drastically. It's catastrophic and every week we come to see, every week we say to ourselves it's not possible, it doesn't stop decreasing, it's incredible. So, we know that there are these situations, the only thing is that we can have owners who suddenly, trusting, find themselves completely disconnected and do not understand our recommendations because it is too far for them.
So the extreme cases that we observed just to really finish the explanation of how detrimental it can be, we observed two cases close to I'm showing Complete which are in this situation and in fact the extreme case and after I have finished untying the threads of the ball to explain to you how far it can go, there are cases where in fact we find ourselves having to telephone the owner every time we want to modify a price. And that actually, really, puts us in difficulty just doing our job. And in this situation, either the owner tells us: no I don't want to change; in which case in fact, the same, we cannot be sufficiently attractive on the market and therefore we do not sell. So we end up with properties that are empty, we are stuck.
Or conversely, the owner is still rather accommodating and says: ok I take the point that we need to change the prices a little etc; but he doesn't want to change as much as our recommendation as if it were a commercial negotiation when not at all, we want the price to be as high as possible so in fact we just recommend a price which is the right price on the walk. So, the owner doesn't want to change that much, he wants to change just a little bit but that ultimately doesn't make sense; because in fact it's not the price you need to be competitive on the market and therefore we don't sell.
So for us, the recommendation is the following: what is really the best practice to put in place in your concierge service so that things really go as smoothly as possible at this point? The first point is that obviously, I'm not actually denying that there are owners who are making the request, so we're not going to tell them, oh no, we're not giving an estimate of the property's potential. Obviously not, we also have to take our responsibilities and then show what we know how to do, so when we have owners who explicitly request it, we give an estimate of what we think we can do with the property; but we do not make it a systematic prospecting action, it is really only if the owner requests it.
There are a certain number of owners who have experience in seasonal rentals and who generally know what they can expect from their properties, who do not necessarily need to tell you how much you think you can make with my GOOD. That's the first point. The second point is ideally not to give an average price on the one hand and to instead give a range of potential so listen carefully to what I am going to tell you: a range of financial potential of a similar property on the market . Why am I telling you this? Because it is important to give a range of financial potential of a similar property on the market.
For what ? Because in fact by doing that too, you protect yourself, that is to say that obviously you respond to the commercial need to still give something, if the prospect asks for it. As I told you, we are not going to deny the question, it makes no sense and then it would be an obstacle to the commercial relationship but rather give something which is much broader and not say here, for your good, I will give fifty thousand euros; No. There is generally a similar property on the market, it ranges from so to so. This is what we recommend and not to give any ideas of average prices. For what ? Because it avoids putting in the owner's mind an amount in euros that he will expect to see displayed on Airbnb, on booking etc.
And then the third point which is really crucial, is in fact to create a bond of trust with the owners and create a bond of trust with the owners that is, I think, something that you try to do naturally at the daily. But there is a point that we don't talk about much and which is nevertheless essential to create this bond of trust: it is having the reflex to communicate to your owners the realities on the ground, the realities of the market before they even ask. . Because in any situation in life, it's extremely reassuring, I don't know if you've noticed, it's extremely reassuring to have the information before you even need to ask questions.
It's extremely reassuring to have the impression of being kept informed like this and therefore find the recurrence that suits you, whether it's twice a month, once a month, once every two months, once a quarter. , etc. It's up to you to find the rhythm, it's also up to you to find the level of information that you want to share with your owners; but having this constructive reflex of sharing information even before the owner questions himself to give meaning in advance to the periods which could be better, to the periods which could be less good, well that will mechanically create a bond of trust and that will therefore ensure that we avoid all these risks that I mentioned earlier which could be linked to the fact of having initially given the amounts.
That's it, it actually amounts to giving them the estimate only for the owners and there is a point that I haven't thought about but it's true that it is very important and that is to also make your prospective owner aware of the fact that you do revenue management if you obviously do it, if you do it well. That you do revenue management, that you therefore have an optimization logic which involves having more expensive prices in periods of high potential and having more attractive prices in periods of low demand to be able to fill the property despite everything.
You also need to create a trusting bond with him and that is also a major point, but you know as well as I do, your interest is not going to be to constantly go for low prices to fill easily. No, since if, as with the majority of concierge services, you charge as a percentage, it is in your best interest that the owner earns as much as possible because that is what will mean that you will also be able to earn as much as possible obviously.
There you go, I hope this has enlightened you. If you have any questions, don't hesitate to ask them right away. I would like to take this opportunity to share with you that our at J'poster Complet allows concierge services to delegate this part of the management of the performance of properties, pricing and therefore the fact of optimizing the financial performance of each of the goods. Many concierge services use our presence in the team as a commercial argument to say in the team I have someone who has 10 years of experience, there are several of us working on this subject, we are a whole team with in particular Morgane, who like me also has around ten years of experience in revenue management and Sophie also in the team.
So for that, if this is something that interests you to really integrate someone with experience into your team to be able to delegate this part and boost your concierge service, do not hesitate to write to me. The email is hello@jannoncecomplet.com. That's it and we will be delighted to be able to discuss with you about your concierge service, to see where you are today finally first and second exchange just to see if what we could help you, do we has things to bring you and then see how we can continue to work together.
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Concierges be careful not to make this fatal error when negotiating with your prospects: apartment owners! It could cost you dearly later.
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