00:09 Barbara Corcoran: Number two, everybody wants what everybody wants. I know this because I've lived and eaten in the real estate business my whole life. Alright. If you get customers waiting in line to see an apartment, 'cause I used to use this gimmick, do an open house and make it only 20 minutes so that eight people are there. Alright? It really drives people's appetite for that. You can't do it now. What's wrong with the real estate market now? Nobody really wants it. So why do you want it? A great impetus to selling, everybody wants what everybody wants and nobody wants what nobody wants.
00:39 Corcoran: My best example of this is in, I forget what year it was, early '90s, interest rates in New York City, believe it or not, had spiked at 19.5%. Nobody was buying. We were going out of business. Yet again, we were going out of business. I was approached by an insurance company to sell 88 apartments that were the dregs of the market. I looked at them, I analyzed them. They were just terrible apartments, all over the city, terrible apartments, the ones nobody wanted, and I told them I couldn't sell them. Of course, nobody could sell them. They should do a public auction and they couldn't afford to do it, for publicity reasons. I went home.
01:11 Corcoran: That night, I'm thinking about going out of business again, "Oh, my God, ready to give up" and bing! I remember my mother taking us to a puppy sale at my Grandpa Ward's house, there is there in Toms River, and the chicken lady, I don't know why she is chicken lady, she didn't have chickens, across the farm had a puppy sale of Jack Russell puppies, and she had them all in one crate. And as she marched the crate out, my mother said, "Watch, Louise. She is smarter than you think." She had us all sitting on the side of the road, watching. The fancy people from New York with their fancy cars and their really fancy clothes, and we were like, "Oh, this is better than going to a Broadway show" even though we didn't know what a Broadway show was, but here's the thing. You know what she did? How smart was she? She invited all these city slickers to come for her Jack Russell puppies at the same time. They all had 12-noon appointments and they were annoyed to be standing in the line.
01:56 Corcoran: But guess what Louise did? She took her seven or nine, whatever they are, Jack Russell, I think there were seven, and I think in my book I make it up because I couldn't remember, but I think there's seven Jack Russell puppies and what she did is she had like 8, 9, 10 people there wanting them, and what do you think happened to the last person who got that little runt that even I, as an 11-year-old, could tell that that puppy was gonna be dead within a week?
02:19 Corcoran: But she's holding her, fluffing her, [sounds] and showing off at the people who got nothing, and for whatever reason, I forgot about that and because again, I'm thinking, "I don't wanna go out of business [02:30] ____ laugh at me." Boom! It popped into my head and I called the insurance company and said, "I have an idea to sell those apartments", and I put a plan together. And this is what I did.
02:39 Corcoran: I divided them to three stacks, studios, one-bedrooms, two-bedrooms. They are on the East side, West side of Manhattan, and I took and added up how much money they wanted and I asked them if they could give the financing. "No problem, we just wanna get it sold." "Great", okay. "Can you give one-year free maintenance? You can't even sell these suckers for five years. What's wrong with one-year free maintenance?" "No problem, one-year free maintenance." [02:59] ____ are going, and then I priced every one of the studios the same, every one of the one-bedrooms the same, every one of the two-bedrooms the same. Now think about the logic of that.
03:10 Corcoran: I announced to my salespeople, which I was planning on doing, "I'm sorry, we're going out of business, and thanks for staying with me" but instead I said, "We have a private sale. Only tell your best customers and your family members. But whoever's there first, gets the pick of the litter. We have 26 two-bedrooms all priced the same. Some are on high-floors, some are on the dungeon-floors, some have kitchens, some have no kitchens." "Where are they?" "I can't give you the list, but get everybody there early."
03:35 Corcoran: Do you know how happy I was, as a broker about to go out of business, when I rounded 83rd Street and saw over 150 people standing in line for 88 apartments. I handed out the list. It was like a feeding-frenzy. People grabbing it, looking at it, seeing the addresses, running, taking taxis. Do you know, within an hour and a-half, we had sold 88 apartments? Bang! Like a fire sale. In the midst of the worse real estate market where nothing was moving and selling, the worst dogs in the marketplace. But you know what the insurance there was? The person who got the worst one at least got one, and they saw the other people bitching and complaining, "That's not fair. We were here early too. Why do... " I loved the... "Sorry!"
04:21 Corcoran: But you know what I made? I made over a million dollars net commissions after paying my sales staff. Boom! In an hour, that had never happened. Whoa!
04:32 Corcoran: I'm not looking for applause on that. What I'm looking to do is... But I appreciate that. I'm not trying to turn it away But what I am trying to do is impress on you that in any sales, and business is sales, I don't care if you think you're not in the sales business. If you're an entrepreneur, you are in the sales business and you are the chief salesman. And if you can't sell, your business ain't gonna work. It's as simple as that. If you can't sell and you get a partner who could really sell, your business could work. Hire the right people, but very often you don't have the resources on that. So, you're all in the sales business, I don't care what it is. And I have found that the thing I have always tried to do is create a sense of demand through just throwing the baloney out there, okay, rather than waiting until I had a demand, because it makes people come in and wanna feed. That's the kind of thing. Alright.
05:21 Corcoran: So that's everybody wants what everybody wants, number two.