Commercial Agents – Key Sales Pitch Tips and Objectives

Before you as a commercial property agent do a sales pitch to a client to potentially list their commercial property, it pays to understand and set the strategy you will adopt. You need to define your targets of the process. Clarity is important.

Given that each property is different, the strategy and your sales pitch should also be distinctly different and unique given the elements of the property and the circumstances of the market. You are the expert agent and you need to show exactly what is going on out there today.

Here are some ideas and processes to feed into the presentation:

  1. Firstly get to the real facts of the client and their needs today. They will have special concerns about taking their property to the market today. They will also have certain criteria that must be satisfied for the marketing and negotiation to be successful. Ask the right questions until you really know what they want to do and why.
  2. Given the previous point above, develop a clear understanding of just what the target market is for the property today. As the local agent you should have a database that gives you a typical profile of the enquiry coming in to your office at the moment and how it can be converted to the property.
  3. The defining of the target market will give you specific ideas as to how you can reach the target audience through direct marketing and consistent effort.
  4. Take plenty of photographs around the property before you see the client. You can then put the images on a rolling slide show on your laptop computer to supplement your discussions with the client. Given that the photographs are only of their property, it tends to attract their attention far better than any other laptop use or presentation material.
  5. Have some market evidence and comparable property detail to show the client and to support your discussions. Real numbers and facts from the local area are hard for them to refute.
  6. Carry a variety of marketing examples of similar local properties today. Show the client just how you would use the material to the best of its advantage in attracting more enquiry and better inspections to their property.
  7. Tell the client exactly what the market is looking for today and how you will use that to your advantage in marketing their property.

Far too many agents approach the pitch process generically without much planning. Given that you only spend a small amount of time with the client in the presentation and that the other agents in the local area will be pitching for the same listing, you really do need to think about the sales pitch process before you see the client. Preparation is the key.

Commercial Law – Payment of Commission – Commercial Agency Regulations – Commercial Agent

The case of Heirs of Paul Chevassus-Marche v Groupe Danone and Others (Case C-19/07) [2008], involved a determination on community laws relating to commercial agents. According to Article 7(2) of Council Directive (EEC) 86/653 (On the coordination of the laws of the member states relating to self-employed commercial agents) (“the Directive”):

“A commercial agent shall also be entitled to commission on transactions concluded during the period covered by the agency contract either where he was entrusted with a specific geographical area or group of customers… And where the transaction has been entered into with a customer belonging to that area or group…”.

Article 10 provides as follows:

“(1) The commission shall become due as soon as and to the extent that one of the following circumstances obtains:

(a) the principal has executed the transaction; or the principal should, according to his agreement with the third party, have executed the transaction; or…

(c) the third party has executed the transaction.

(2) The commission shall become due at the latest when the third party has executed his part of the transaction or should have done so if the principal had executed his part of the transaction, as he should have”.

In 1987, the first respondent in this case concluded an exclusive mandate with C. The applicants in this case were heirs to C’s estate. The exclusive mandate concerned the first respondent’s representation of C’s subsidiaries, namely the second and third respondents, in their dealings with the importers, wholesalers and retailers of their goods in a specific geographical area.

Before the termination of that contract, C requested payment of various sums. Such sums included commissions relating to purchases made by two companies established in his geographical area.

The requests for payment were refused on the ground that the purchases concerned had been made from central buying officers or dealers in metropolitan France, an area outside the control of the respondents, and without any action on C’s part.

C then brought an action concerning payment of commission.

The national court made a reference to the Court of Justice of the European Communities. The question concerned a request for a preliminary ruling on the interpretation of Article 7(2) of the Directive. The question referred by the national court was as to whether Article 7(2) of the directive was to be interpreted as meaning that:

“A commercial agent entrusted with a specific geographical area was entitled to commission where a commercial transaction between a third party and a customer belonging to that area had been concluded without any action, either direct or indirect, on the principal’s part”.

It was held as follows:

The court was of the opinion that

· Article 7(2) of the Directive had to be interpreted as meaning that a commercial agent entrusted with a specific geographical area did not have the right to a commission for transactions concluded by customers belonging to that area without any action, direct or indirect, on the part of the principal.

· Article 7(2) merely refers to any transactions concluded during the period covered by the agency contract. There is no requirement that those transactions had to be entered into with a customer belonging to a geographical area or a group of customers for whom the commercial agent was responsible.

· There is not an express requirement for action on the part of the principal, and there is no requirement for action on the part of the commercial agent.

· However, it should be noted that when considering Article 7(2) in conjunction with Article 10, the commercial agent’s right to commission arises either:

§ when the principal has (or should have) carried out his obligation; or

§ when the third party to the agency contract, namely, the customer, has (or should have) carried out his obligation.

· The presence of the principal in the transactions for which the commercial agent could claim commission was indispensable. It therefore followed that the commercial agent could claim commission. The commercial agent’s claim for commission could be made on the basis of a transaction only to the extent that the principal had acted, directly or indirectly, in the conclusion of that transaction.

· As a result, this meant that it was for the national court to establish:

“Whether or not the evidence before it, assessed in the light of the aim of protecting the commercial agent and of the obligation on the principal to act dutifully and in good faith, allowed it to establish the existence of such action, be that action of a legal nature”.

© RT COOPERS, 2008. This Briefing Note does not provide a comprehensive or complete statement of the law relating to the issues discussed nor does it constitute legal advice. It is intended only to highlight general issues. Specialist legal advice should always be sought in relation to particular circumstances.

Combining Technology and Style – 8 Top Fashion Apps For Your iPhone

Here are some great fashion apps for your iPhone.

1. Trendstop TrendTracker. This app allows you to follow trend reports, uncover news feeds from the fashion industry and view photo galleries from fashion events all over the world. Free.

2. The Fashion Handbook. This one is all about current trends, styles, tips/tricks and more. Good app for fashionistas looking for the next big thing or the average woman looking for style tips. Cost: $9.99.

3. Seventeen Fashion Finder. This app gives you access to the pages of Seventeen Magazine. Perfect for the teen seeking the most current fashion jewelry and clothing, this app is a must-have! Free.

4. Bra-Fitter. This is useful when it comes to sizing yourself correctly. A majority of women are actually wearing the wrong size bra for various reasons – from feeling uncomfortable having a store worker size them to just not having the time. Cost: $1.99.

5. Closest Friend. A unique application, the Closest Friend allows you to archive pictures of what you wore for certain special events. If you have ever found yourself asking, “What fashion jewelry was I wearing at the wedding?” or “Which of my belts did I have on for that corporate meeting last month?” Cost: $0.99.

6. Tattoo Patterns. If you are looking for stylish body art but fail to think up the perfect pattern, this app can supply you with 128 different designer-quality ideas. Now your tattoos and wallets can match! Cost: $1.99.

7. Teen Vogue Haute Spot. This app gives you the ability to sneak a peek into the closet of an editor of Teen Vogue! The cost of this all-access pass is free for now, but may soon come with a charge.

8. Social Mall. This app is the perfect shopping companion. Browse interesting articles on clothing, fashion jewelry, and more. Free.