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Luxury CE

L.A. (Success) Story

July 7, 2010 By Brooke Lange

Ernie Carswell, a 20-year veteran of the Los Angeles real-estate market, is at the top of his game. While he started small in Dallas during the Oil Crisis, he represents double-digit million-dollar properties today. His clients include CEOs of Fortune 500 companies, entertainment studio executives, foreign dignitaries, government officials and regular folk. Luxury CE talks in-depth with the quintessential sales professional.

Luxury CE:
You started selling real estate in Dallas during the Oil Crisis and then you jumped into Manhattan’s big pond in the mid-80s. How did you reel in well-heeled clients?

Ernie Carswell:
I didn’t come from a family who handed me connections. I didn’t graduate from Harvard with a fraternity of classmates who could give me business. I had to throw myself into each market. As I proved myself to people my reputation [grew] quickly by word of mouth.

I’ve got to tell you, it still surprises me:  I was able to work with the chairmen of companies and ambassadors in Manhattan in less than three years. That being said, my clients are usually referred to me. My work ethic made enough impact, so my reputation expanded [quickly]. Once you work with a bank president, that person can put you into many different orbits. It takes a while to reach that one person, but he or she can be responsible for a multitude of clients.

LCE:
How did you throw yourself into those markets?

EC:
It began at a grass-roots level: I volunteered for open houses on Sundays. This was before the Internet was big. It existed, but [most people weren’t] looking online for real estate.

Enough people attended those open houses so I’d connect with someone eventually, I’d prove my work ethic and we’d close a transaction. Then they’d refer me to a friend. That friend may have been their doctor or boss, who might be a bank president. It was that simple.

 

 

 

LCE: Today it’s not as simple as placing a real-estate ad in The New York Times.

EC:
Right. Newspapers are going online and advertising is changing. So I have a lot of marketing tools to keep myself relevant. I believe in branding, which is a specific focus of marketing. Whether it’s a logo, philosophy or tag phrase, consistency is what drives [a brand] into the public mindset. They see it over and over and it begins to be recognized.

I read somewhere that it takes six months for the mind to remember a logo. Many people don’t have the patience to wait [six months], so they tinker with their logo and then the calendar has to be reset.
My tag is “the fine art of representing you.” I’ve thought of better phrases, but I stuck with this one because it’s branded to me. Whatever you select, stick with it and it will serve you well.

LCE:
You’re very forthright on your website, carswellcollection.com, about marketing diversely.

EC:
In my business, professional photography is the driving force of marketing. People flip through magazines, pause when something catches their eye and then they read.   When I work with professional photographers, my goal is to create an image that stops someone in their tracks, whether it’s a $30-million Bel Air estate or an $800,000 Westwood condo. I also believe in fewer words. You can entice people with words—give them enough information so they call you, but don’t tease them too much or they might not call.

I suggest this whether you’re selling washing machines, homes or entertainment systems. You must have imagery that’s visually arresting.

 

 

 

 

LCE: How do you establish trust with a well-heeled client?

EC:
People in the same [socioeconomic] level will accept a word-of-mouth referral more readily than reading an advertisement. So it becomes a lateral referral among the head of a movie studio, for example, who’s having a conversation with another studio executive.

In almost every dinner conversation in L.A., real estate comes up. Someone at the table will say, “Oh, I know that agent.” Or “I need that agent.”  I’m sure that’s true with home entertainment specialists. When someone discusses how great their system is, people want referrals. If your reputation precedes you, others want to talk about the incredible job you did for them.

LCE: How do you keep customers happy after earning their trust?

EC:
Instead of looking at my dollar, I look at their dollar. People are happy if their wallets are happy. That doesn’t mean I give away my commission because I believe I earn what I take. But I don’t think about commissions when working with clients. I think about their satisfaction. You see, my money has always been fine because I put the client first. Many professionals worry about their wallets during the transaction. That’s why their businesses don’t expand.

LCE: You can invest in a top-shelf website and a PR firm, but how can a small business market itself?

EC: You don’t have to spend big money. This is something I’ve learned from the PR specialists I’ve hired. You can establish a blog site for $0, but [you must] make it interesting, valid [and easily] found on the Internet. Whether I’m researching a restaurant or a vacuum cleaner, I go online.

These days, people research homes and entertainment systems online, so you must be easily found. There are inexpensive ways to do that with blogs, links and social media sites. If you don’t understand how to do that, ask for help. When someone Googles your company name, it must come up.

LCE:
Your website alludes to the importance of direct mail. How do you handle these endeavors?

EC:
When I moved to L.A., I knew no one. I started with client No. 1, client No. 2, client No. 3. It was very homespun.

So I mailed people who knew me, or had bought from me, and that list mushroomed with referrals. While I never purchased a mailing list, my clients have offered them to me. For instance, I listed an expensive beach home and the owner wanted his [listing sent to] everyone on his list, [which] included every address, email and phone number for all the Fortune 500 CEOs and companies. He gave me that list.

You must use discretion with these lists, and I’m very careful with that. I won’t send out [a Westwood condo listing] to the chairman of Alcoa Aluminum. I don’t mail to people who [wouldn’t] want to receive my information. Otherwise the mailing will go to the trash and you’ll look cheap. It’s about knowing which recipients will find your material relevant.

 

 

 

 

LCE: You’re a top producer in LA ... care to share the secrets of your success?

EC: Always tell the truth, know your facts and put the client’s interests first. When you do that, they’ll repay you by thinking of you first. Barbara Walters taught me this [laughs]. In the 70s, she wrote a book about how she was able to interview the most powerful people. I don’t remember the name of the book, but she discussed how people want to talk about themselves—they don’t want you to talk at them.

I’m a talker, but in a sales situation I become a listener. It’s the art of letting the client open up and talk about what’s important to them, and gently guiding them.

LCE:
What’s the mistake most sales people make?

EC: It’s better to admit that you don’t know something than to make it up. If you hedge the truth, your reputation—that you can’t be trusted—will get out there. That’s the most damaging thing even in L.A., which really is a small world. People talk so much about themselves—how great they are, how many washing machines they’ve sold. That makes them sound like a salesperson.

Look, I love going into a retail situation and being sold by a true pro. It’s a wonderful experience. But I get disgusted with a bad sales person. It’s a turnoff when they sound like they’re selling.

LCE: How do you not come off like a salesperson?

EC: Don’t start selling yourself. Ask the client questions.

A salesperson will win me over if they ask, “What is it that you want, Mr. Carswell? Well, have you heard of the so-and-so, and let me tell you why that’s important.” Before I know it, I’m telling them my whole life story. But as soon as I feel like I’m being sold, or I sense that they don’t know their product, I become standoffish. I won’t spend a dollar.

LCE: After all these years of experience, are you still learning?

EC: I melt in the hands of a great salesperson. I happened to buy my car from the nation’s top car salesperson for that brand. When I’m in her office and we’re negotiating, I witness how she handles her other customers. I’m amazed at how she has the knowledge to answer every question. I’ve bought from her for more than a decade.

For example, I’m particular about the color of my car. I chased down a man on Sunset Boulevard who was driving the color of car I wanted. I scared him because when he stopped at the light, I jumped out of my vehicle. Thank goodness I was wearing a suit and tie! When he rolled his window down, I said: “I’m sorry to disturb you but I love the color of your car. Do you know the name of it?”

He became flustered because he couldn’t remember the name and then the light turned green. As he drove away, I noticed [the dealership name] on his license plate frame. He bought his car at [my dealership], so I called my salesperson. Now this is Los Angeles, so how many cars do you think my salesperson has sold?
She knew the man and knew his phone number and address. That’s what I mean about knowing your facts. She remembers every client. How can I not buy from her?

Whether we’re talking about house painters or people who sell furniture, I’m drawn to salespeople who have extraordinary talent, understand client service and know their facts.

LCE: You had to sell differently during the Oil Crisis … and certainly you’re selling differently now.

EC: I’m a sensitive person, but this economic client requires more sensitivity. It’s not easy for people to admit they’re in financial distress, especially in L.A. where there’s so much visible wealth. I’m realizing [that clients aren’t fully disclosing] why they need to sell. It’s a time for extra sensitivity because even people at the top aren’t making what they used to.

LCE:
What’s the key in dealing with a higher level of client?

EC:
Discretion. The higher-level clients are more sensitive to this. Once they feel they can trust you with private matters about their transaction, you’ll earn their trust. And that can expand exponentially. Once someone respects you, they’ll broadcast your name.

I very much admired a Beverly Hills agent, who’s deceased, and her motto: “Serve your client first—no matter how wealthy they are—and then go home and admire your own Picasso.”

Some Agents in L.A. make seven figures. But when you’re working with a top-shelf client, you don’t want to say: “I have a Picasso, too.” I think her point was “don’t try to equate with the clients.” Be discreet. They are the client—and they’re top dog in this situation. Don’t make the mistake of thinking you’re going to equalize with them.

Also, I keep my private life separate from my business. When I socialize with clients, we have a nice dinner but I don’t try to become their best friend. I respect them, I treat them with discretion and I enjoy their company, but I keep my life private.

LCE: When a salesperson tries to put him or herself on a client’s socioeconomic level, they’re trying to make the client feel that they have something in common. That can come off as disingenuous.

EC:
That’s right. It’s a booby trap if something goes wrong. I prefer the private, discreet route.

LCE:
You say that you take care of your client in every respect. You put them first. You think about their dollars before thinking about your dollars.

EC:
My personal motto is “the ultimate service, always.” The word “service” has lost its meaning, whether we’re talking the hotel, restaurant or airline industries. Everyone talks about their service, but how often do you really get it?

I try to be the professional who’s recognized [for the service] I deliver. I tell you, I don’t lose clients. I’m not trying to brag, but one of my proudest achievements is that the people I work with don’t depart my services. Many people come to me after working with other agents, saying, “Well my goodness, this is totally different.”
In the back of my head I try to provide the ultimate service always. No, I’m not shining your shoes, I’m not saying I’ll be your servant. I’m saying “think for your client” if you can and anticipate their questions and needs. Relieve their anxieties. Instead of just going through a sales transaction, make it enjoyable. Look, change is always stressful even if it’s an upward change. I try to relieve clients’ anxieties.

LCE: There are many schools of thought about giving parting gifts.

EC:
I think it’s just too pedestrian. When I was a rookie I gave closing gifts—I thought that was something you had to do. I rarely give a gift now. My gift is working with me—receiving my services and knowing that I’m reachable 24 hours a day. I’ve had some clients call me in the middle of the night. I don’t love it, but I gotta tell you they know that if it’s that critical, they can call and I’ll be responsive.

Sure, I might notice something during a transaction that the client mentions and realize that an [item] might look lovely on their coffee table. But that’s the only time I give a gift. The client isn’t looking for a gift—they’re looking for service. They really want to be satisfied in how you treated them. That’s the best gift.

LCE: There’s much dishonesty in our world today. Just look at Toyota and its inability to issue an apology quickly. There are certain people who are wiling to admit they made a mistake and then take the next step and make it right.

EC: A mistake will not ruin your reputation unless you’ve done something unethical like embezzeling your clients’ funds. That’s not a mistake—that’s a suicide. When I make a mistake, I immediately go to the client and apologize. And if it’s cost them money I have to cough up that money. You must take responsibility, ask for forgiveness and pledge that everything will be done to correct the mistake and any aftermath. If you do that—and remember I said to always tell the truth—your reputation will not be hurt. In fact it might even be enhanced.

LCE: How do you stay in touch with a client you sold to 10 years ago?

EC:
That goes back to who’s on my mailing list. Once you’re on my mailing list, you’re on it. If you bought a house from me 20 years ago, you’re gonna hear from me, but not every month. Who wants to hear from someone every month when they’re not thinking about real estate?

You want to stay in front of past clients just enough so they remember you when their next need arises. I try to stay in front of my clients three to four times a year via email or something in the mail, but it has to be wanted. I try not to send stuff that’s not necessary. I’m thoughtful about that, and there must be some imagery to it—an image on a postcard, for instance. Something that’s gonna grab them even if they’re not looking to buy.
For everything I send out, I want the reaction to be, “Wow, look at that!” That way it’s a memorable piece, and they’ll remember me. But they won’t throw it in the trash if they remember that their neighbor is thinking about selling.

Also I keep a rotating list of who I should call. It’s about keeping in touch and asking, “How are you? I’m thinking about you.” Make it something positive. I always make [the call] about them.

LCE:
Are you goal-driven, or does everything fall in to place for you at this stage of the game?

EC: I work best when I’m working toward a goal. That could be buying the next car or buying a trip to France. It used to be that I needed to sell so many houses, but now it’s more of the rewards of when I sell X number of houses.

Make no mistake, no one graduates in their profession to the point of they no longer need goals. If that’s the case, they’ve become inactive. Also, I set interim goals because a year is a long time to think about. I set weekly and seasonal goals. If you can dream it, you can obtain it. If you’re not dreaming and goal-setting, you’re going to get anywhere.

LCE: You seem juggle a lot of past and current clients. How do you keep it all in perspective?

EC: I’m married to the most wonderful person on Earth. You have to have a supportive home base. I have a wonderful “home” to come home to—someone who understands.

LCE: You’re all over YouTube with your Los Angeles Conservancy involvement and the controversy surrounding the Hollywood sign last year. The press conference you held on TV gave you great exposure.

EC:
I think it’s more interesting for the public to look at the professional who’s giving back as opposed to a professional who talks about himself. There’s something worthy in giving back to the planet, back to humanity. I’m involved in things that I do care about for one reason and another.

When you give of yourself, you begin a karmic trip that ultimately comes back to you. I don’t think you should [get involved] to get something, but ironically it does happen. I was on an excursion [recently] to another part of LA County. Let me tell you, it was difficult for me to give up a full day of business—it cost me money. But the reward of bonding between people and good will, that’s gonna last. When I think about the basketball court we built for those kids, I can always feel good about that. By giving back, I’m setting up some future peace for myself to know that I didn’t just trapse around the world and take. I helped it a little bit.

LCE: Any parting words of wisdom?

EC: Reputation is everything. It takes a long time to earn a good one and short time to lose it. Pay your dues, be patient and work on your reputation. •

 

 

 

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