Being Guido - How to Get Control of Your Money Flow - by Jennie Norris, ASPM, IAHSP-Premier, BTS, REO, SRS - Owner, Sensational Home Staging

Being Guido 

How to Get Control of Your Money Flow

Most people have seen those movies – the gangster flick where the bad guy named Guido talks with a thick Brooklyn or Italian accent and roughs up some other character as part of the plot.  No one likes Guido.  I bet Guido does not even like being Guido.

Yet so many Staging business colleagues put themselves in that role of the enforcer, collector - well, Guido.   The good news is there are ways to get away from being in that role.

Back before merchant accounts were part of our business process, I would invoice clients for payment and then wait expectantly for a check to be mailed to me or left for me to pick up.  I am sure they meant well and had every intention of paying me on time and in full, but then some unexpected bill came up or they forgot they had to pay for some other thing – and my invoice went to the bottom of the stack.  It was not just sellers – it was also Realtors.  Paying for the Staging services was not a priority to them – but to me it was my only source of income and was a priority for me to support my family.  Staging is not a hobby to me – it is a full-fledged business and so I had to find a way to ensure others understood that fact.

Let’s face it – to a client, paying for Staging services does not seem quite as important as paying for a house payment or other pressing bills.  Hounding people for payment took the joy and focus off what Staging is about – making properties more marketable, making sellers and Realtors happy, and ultimately earning money in my business.

With how far we have come with many different options for processing credit or debit cards for payments I am left scratching my head when I hear colleagues complain about not getting paid.  It is so easy to avoid being Guido.  Set up a merchant account.  

Require clients to provide you with a valid credit or debit card number.  Process that payment at the onset of the next billing cycle and before a third party rental company may collect from you.  If that card is declined when you go to process it, there is no Staging that takes place.  If you process it for ongoing rental and the card declines, you pick up your stuff.   Period.  No leaving things in place believing that the check is on its way.  My experience is when a client has poor intentions and is going to default on paying, they will do it when you give them an easy way to make it happen.  When you take control of the money processing, these people cannot get away with not paying.

Leaving inventory in place with no client payment means you end up in the hole financially with little recourse.  Colleagues that have not been paid and are not in charge of their business money flow talk about having to put liens on the property or go to small claims court.  Both options create a negative situation that takes our focus off being productive.  They can also take a long time to be resolved.

Bottom line – Stop being Guido.  Don’t accept checks for large projects and/or for those projects that have repeat inventory payments.  Period.  No matter how nice a client is, or how good their intentions are, we leave ourselves open for being taken advantage of by not having professional standards that are communicated and enforced up front.  Someone that wants to only pay by check can provide a debit card – it is the same thing as the funds are pulled from the bank account.

I put away my Guido hat years ago – as soon as merchant accounts became available to me.  I gladly pay the processing fees that are far, far less than the cost of my time to hunt people down and hound them for payment.  I typical Staging project merchant fees are nominal compared to the thousands of dollars of my time and energy spent dealing with non-payment clients, not to mention the sleepless nights wondering how I am going to cover other bills I have to pay.  Just because a client has not paid is not a good reason for lack of payment to a vendor or service provider I owe.

There are numerous options for merchant accounts from your bank, credit union, online resources, and so forth.  You want to check the various terms and fees from the providers to ensure there are not hidden costs and negotiate low processing fees. 

So, in the words of Guido, “Fuhgetaboutit” – get a merchant account and enter the world of easy money processing.  No more waiting on others – we are in control of our money flow.   It is so easy, makes sense for a business owner that plans on growing, owning and operating a successful, thriving and profitable Staging business for years to come.

Staging Success – How Long Does it Take?

Staging Success – How Long Does it Take?

by Jennie Norris, ASP Master, IAHSP-Premier, SRS, REO, BTS

Owner, Sensational Home Staging

Starting a business is exciting because at the start we are full of possibilities and hope for success.  We get started and for some that have never owned their own business before – we realize that it is a lot more work than we realized.  We think, “I am creative – can’t I just Stage?”  Why do we have to do all that other business stuff?

Why?  Because without it – there will never be the Creative Side that we love to do. 

To be successful we have to be not only passionate about being creative, we have to be passionate about building our business.  It starts with our attitude and having huge perseverance to get us through the growth stages. 

 

The key is how PASSIONATE you are about your business and being a Stager.  If you have left yourself an out, then you have a “fallback” position and really have not committed 100% to your goal of owning a successful Staging business.  I teach, “Burn the Bridge” and don’t give yourself an out.  Have a motivating factor that is large enough that you don’t consider giving up and going back to a W2 job.

 

When I teach others about being successful in Staging, I am honest and share that you have to plan at least 5 years out with your vision for business.  To expect a thriving business in one year or even two is not realistic.  It is a minimum of 3 years to see your business begin to mature and at least 5 years to really see the big dollars coming in consistently where you are in the 6 figure or higher income category.

The typical growth of a Staging Business looks something like this:

Year  1: Getting established, setting up the business framework, and planting seeds of success by initiating relationships with Realtors.

During this year, many Stagers will give up because they get discouraged at how difficult it might be to overcome objections and get a client to say, “Yes” to Staging.  They have no idea what Marketing is and how to use it to get business.  The fantasy of having a significant income producing company in the first year vanishes as they realize that the first year is really all about laying the groundwork for a growing business, Marketing like a maniac and cultivating relationships.

Year 2:  Your business is established and you have clients calling you when you have been out marketing consistently.  You are able to manage the existing relationships you have and continue to cultivate new ones – and now you can actually ask for referrals from existing clients because you have a track record. 

During this year, there are still hurdles to overcome as mistakes can be made with business set up and strategies.  Achieving a nice 5 figure income is definitely achievable and being able to reinvest some of the proceeds back into the business is happening.  You are still marketing because that never stops.

Year 3:  Your business is established and you are maintaining your client base.  You should be getting enough consistent calls that your calendar is full.  This is the year that you might have to add a team member to help you keep up with demand whether it is a part time assistant or other Staging colleague to whom you can refer business.    You either go the employee route or have independent contractors. Marketing continues – to keep your name and brand in the forefront of the Realtors and sellers in your market.

Years 4 and 5:  You are growing your business and handling your established client base.  You probably have a team in place to help you including movers, assistants and other Staging colleagues that help on projects as needed.  You might be turning away business because you cannot handle the volume.  You might have diversified and acquired inventory and have set up a storage facility or warehouse to house your items.

 
Give yourself enough time to really see your business mature – and keep your passion fully engaged and you will be in business for many years to come!

Staging is deductible as an Advertising Expense for Sellers - get the info from your ASP-ASPM Stagers that attended the IAHSP 2014 Educational Conference

DEDUCT STAGING AS AN ADVERTISING EXPENSE

 

Don't drop your price which is a total loss -

 invest in Staging and be able to deduct the investment

off the proceeds of the sale!

Having just attended our International Association of Home Staging Professionals(R) (IAHSP) Educational Conference one of the key things I brought back for my clients is the following information on Home Staging and tax benefits:


According to CPA Rob Unger of Judelson, Giordano & Siegel, P.C., “Home sellers can benefit from Home Staging, as the fees for Staging services can be considered as advertising costs, according to the IRS guidelines. Since a home Stager prepares your house for potential homebuyers, the IRS considers the service as an advertising expense as long as the home Stager has been hired for the sole purpose of selling your home. The costs of Staging are subtracted from the proceeds of the sale of the home and decrease the total realized profit. In summary, the IRS’ position is that Staging costs are a legitimate selling expense for both primary and secondary homes and are therefore tax deductible.

However, it is important to note that if a house is Staged and then taken off the market, the Staging expenses are not tax deductible.”

** Always check with your own CPA concerning all tax write offs, tax information and the above information as well.

The 5 Senses of Staging a House – a Sensible and Sensational Idea!

The 5 Senses of Staging a House –

a Sensible and Sensational Idea!

By Jennie Norris, APS Master®, Owner, Sensational Home Staging

Denver Region's Premier Home Staging Resource

 

 

I read something recently that caught my attention as it talked about how our 5 senses – SIGHT, SMELL, TOUCH, HEARING, TASTE – engage as we look at houses, or rather how they don’t engage if the seller has not deliberately put things out to make that happen or has not bothered to prepare their house for sale.

I thought about this – and as a professional Home Stager – I realized this is what I do every time I work with a Seller and on a house to Stage it for sale.    But there is an imbalance with some Staging out there – where the focus is really on ONE sense – SIGHT and the others are sort of forgotten. 

Let’s take a look at what a complete sensory Staging would be like. . .

Before we take a look at what happens with Staging, let’s consider the flip side - when a Seller does NOT prepare their house for sale and what a Buyer might experience within their 5 senses.

 

SIGHT:  Cluttered and dirty houses are a turnoff to Buyers.  If the house is not picked up it says, “I don’t care about my house.”  If a Buyer sees too many personal things, they feel like they are invading someone’s space and they are uncomfortable and will leave.  If they see all the Seller’s things it not only distracts them from just being able to take in each room as a whole, it also could turn them away if the items are too personal, tacky, or just plain odd. 

SMELL:  Do I really have to mention that ANY unpleasant odor, aroma, or smell in a house is not a good thing for Selling?  If a Seller is unsure whether their house has a smell that is unpleasant, tell them to ASK any number of people that do not live there.  The most common culprits are cooking odors, pet odors, cigarette smoke odors, old house, and mildew smells but it could even be too much fragrance or plug-ins that cloister the senses.  However, most people are afraid to tell them the truth, and that is where the Home Stager can help.

TOUCH:  This can go a couple of ways, but let’s first start with the touch that ends up with sticky residue on your hands – that is a house that needs cleaning!  Buyers are going to open doors, cupboards, and touch things as they go through the house.  Buyers will also consider the furniture in the house, and if touching it gets a reaction like “EWW” – that is not a good thing.  Threadbare, torn or tattered is not a good look for any Seller hoping to attract a Buyer and give them the belief that, “Hey I took great care of this house – just look at how well I cared for my furniture!” 

HEARING:  We cannot always control the noise outside of our houses – traffic, dogs, construction, but we can control the noise inside.  A faucet that sounds like a Mack truck engine when you turn it one says, “There is something gravely wrong with the plumbing in this house.”  Squeaky hinges, doors that drag on the floor, and in general any noise that advertises the age of the house is not a good thing for Selling.

TASTE:  This one really does not pertain to pre-Selling so we’ll just skip this one for now and go right into the recommendations for when the house is Staged.

 

It’s easy to incorporate all 5 Senses in a positive way when Staging and Selling a House.  This can be done with Occupied or Vacant houses for sale and is a key process that ensures a Buyer has a complete experience in the house. . .

 

SIGHT:  Make sure the house is light and bright.  Open up windows where there is a view to show off, and minimize any unattractive views with blinds or strategically placed objects.  Make sure the house is very CLEAN and also DEPERSONALIZED as far as collections, personal items (bills, medicine), photos, and anything that could be a potential distraction for a Buyer.  Any brightly painted walls should be painted a warm neutral color.  Walls that are too dark actually make the room feel smaller as it closes the room in . . . And when a Seller does not paint, they are eliminating a large portion of the Buyer pool who don’t like that color, it does not go with their stuff, and they don’t to have to paint when they move in!  They’ll just go buy something else that is ready for them and does go with their things, a.k.a. NEUTRAL.

However, we need and want COLOR and NATURE for visual appeal in Staging.  Accent décor and greenery, artwork that draws a person closer, and other fun whimsical displays are good for Staging and Selling.

Do not make your house so stark and plain that all the pizzazz is gone.  This is taking the “de-cluttering” too far – and now your house is cleared out but it’s Boring. 

TIP:  Your Home Stager will know what to do in each room to make it visually stimulating and appealing to draw the buyer in and want to see more!  They can use your things or enhance what you have with décor, but the plan should be to keep or add pizzazz but allow the Buyer to take each room in its entirety and not be distracted by décor or too much.  There is a fine balance your Home Stager can help you achieve.

SMELL:  We want houses on the market to smell good – fresh and inviting.  For showing houses Realtors often use the baked cookies or bread trick or the cinnamon simmering on the stove trick . . . but Buyers can detect if there are other underlying aromas.  This is where a house must be CLEAN – and there is no concession here – we don’t want smells –urine, dirty clothes, smoke smell, cooking odors, mold or mildew smells in the house.   Once the smells are eliminated, the house should smell fresh and clean – and be kept that way while the house is on the market.  There are products that eliminate odors for good as long as they are not reintroduced. 

When others may be afraid to tell the truth about odors in a house that is coming on the market, a professional Home Stager owes it to the Seller to tell them the truth.  Those that are trained understand how to couch their message in kindness so they don’t offend – and yet if we don’t tell the truth and the house does not sell because of this issue, we did not do our job.

TIP:  Ask your Home Stager what they recommend as a permanent solution for challenging aromas. There are inexpensive yet effective products that are odor eliminators, as well as machines that can be used.

 

TOUCH:  The house should look “plush” and inviting.  There should be soft surfaces along with the hard – and this relates to the furniture.  A bed can have a comforter, but why not add some accent pillows and a throw as well to create layers of softness?  If a Seller has a collection of Adirondack furniture throughout the house, they need to possibly minimize the collection, and for sure bring in accent pillows or cushions, and silk trees or plants to help soften all that wood.  Not that a Buyer is going to sit in a Seller’s couch, but we want them to feel like each room is inviting them in to experience more. By the same token if the Seller has a bunch of overstuffed couches, bean bags, or large floor pillows, we want to bring in some structured furniture to help add strength and solidness to the room, otherwise we feel like we are sinking.  Throughout the house there should be a balance of hard and soft, plush and streamlined. 

 TIP:  An experienced Home Stager will know what to do in each room, how to make the most of what a Seller already has, and bring in any needed décor to complete the look.

HEARING:  Showing houses agents will often play music – and I think that is a good thing to create an atmosphere that is pleasant and inviting.  There are other audible enhancements that are appealing to buyers as well.  A water feature is enticing and relaxing – consider putting one in the Master bath or a larger one in the courtyard or back patio.  Sellers need to fix all the squeaks and groans in the house they can before it comes on the market.  You cannot “Stage away” traffic or construction noise, but you can minimize it by having another sound distract from it.  This helps a buyer to know, “Even though there is some exterior noise, I could still live here if I had this water feature.”  Help them to know how to override what may be a potential detraction to buying the house. 

TIP:  Your Home Stager can provide a creative solution or idea to help override a potentially negative sound.  They cannot “Stage away” the issues, but they can help come up with a plan that will minimize or eliminate the issue.

TASTE:  Of the 5 senses this one is probably the least utilized when Staging as most of the time we are not using real food as props that are supposed to be eaten. However, when Showing a house, it’s fun to have cookies or fruit and refreshing drinks for Buyers.  Stagers can use faux prop food for a look – such as parfaits or small cakes, faux fruit or even faux champagne in glasses, but these are props.  Some Stagers can use real fruit as a prop – but with most it’s not to be eaten.  To get this 5^th sense involved with Buyers the Seller or Realtor will have to provide the delicious snack that gets that last sense engaged, or a team partner Stager can bring cookies and lemonade for the open house – and get that last sense checked off!

 

Let’s face it – the market is competitive and to get the Sale you want within the timeframe you need, you owe it to yourself and your house to engage all 5 senses for the Buyer.

The Results?  A SENSATIONAL Sale . . . When Buyers make a 5 senses connection to a house it is more likely to become their HOME and the Seller will achieve their goals as well of selling versus sitting on the market.

 

Tranformation of Occupied House - Dallas ASP Course - April 2013. "It's not about the money - it's about Creativity"

Check out the latest ASP Staging Course from Stagedhomes.com - Before & After Transformation using only what the homeowner had combined with our students' creativity and ideas! Every room is made more sellable with Staging!