Luxury Real Estate Marketing: Pre-empt Your Competition

Lessons from Local Motors-- Part 2—Pre-empt Your Competition

In Part 1 of this story we focused on how Local Motors “crowd-sourced” the design of a vehicle for an underserved market niche. Their first car, the Rally Fighter, is an off-road vehicle (desert terrain) that can double as a family car on the road. In Part 2 we examine how Local Motors has captured the essence of how the very concept of luxury is evolving. It is becoming experiential not just material.

As a luxury real estate marketing professional, can you state your unique promise of value in just a few words? Local Motors can: Make C.O.O.L. Cars!

Community: The world’s largest community of designers, engineers and enthusiasts come together here to help design and develop cars

Open Source: Open Source chassis data, open development process (collaboration with no secrets)

Ownership Experience: From design to build to service and community experiences.

Local: Cars are built, sold and serviced locally in Micro-Factories

Perhaps, the most unique aspect of Local Motors is the ownership experience. When you purchase your vehicle you are invited to work alongside the experts to build it. Based on your skill level, a customized program is designed to give you hands on experience. It takes only two weekends (6 days) to build your own car and you will have a Designated Builder Trainer to help you. According to Local Motors, “When you come into one of the Local Motors micro-factories you will be sure to meet friends for life”. For car enthusiasts, this brand of ownership experience is true luxury!

By breaking new ground with this experiential ownership model any other car company will appear as a “copy cat”. It is what we call a pre-emptive strategy that is virtually inimitable without becoming a “me-too” brand. This is the sign of market leadership.

How can you break new ground in your luxury real estate market arena and pre-empt your competition?

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Luxury Real Estate Marketing: Find an Underserved Market Space

Rally Fighter at Low Ride & High Ride Height

Lessons from Local Motors- Part 1—Find an Underserved Market Space

We are often asked by luxury real estate marketing professionals, “What does it take to become the break-away brand in my marketplace?” Our answer is:

Find an uncontested, underserved market space that you can dominate with passion, one that makes economic sense. Make sure you select something that you can do better than anyone else.

For inspiration, look outside of real estate for examples of how other entrepreneurs are doing it. There is an extremely exciting news story emerging in 2010 about a new American car company that is re-thinking just about every rule in the automotive industry by indentifying and masterfully serving underserved market niches.

We are delighted to be covering this story in the Language of Luxury blog as we believe that this ground-breaking story will yield tremendous insights for luxury real estate marketing professionals who have set their sights on market leadership. If you have any questions about the future of “Yankee Ingenuity”, which is at the heart of the brand we know as American, you can rest assured that it is alive and well at Local Motors!

When Jay Rogers returned from active duty as a Marine in Iraq in 2004, he came home with the brilliant idea of bringing cars to market in a sustainable manner. That is, a way to produce and sell automobiles that is economically, environmentally and socially beneficial. In Jay’s words:”the cars people want, where they want them, when they want them”. This is what his new car company, Local Motors, accomplishes.

After receiving an MBA from Harvard Business School and raising $4 million in seed money Jay did something that had never been done before in the car industry. Rather than dictating the design of the vehicles, he reached out to the design community and offered a cash reward for the best design. Local Motor’s first “crowd-sourced” vehicle was born: a rugged off-road vehicle that could also drive comfortably on the open road.

The Rally Fighter was created based on the needs of an underserved market niche: the need for a vehicle that can easily traverse desert terrain and also double as a family car that comfortably handles the open road. The winning design provides manually adjustable dual height suspension. It seats 4 adults or 2 adults and 3 children. The Rally Fighter goes into production this summer. The cost is $50,000.

But, the best part of the story is that Local Motors plans to produce their cars only on demand at local “micro-factories” (that also serve as showrooms and service departments) where you, the buyer can watch and even participate in making your own car. With “just in time” delivery of parts and components there is no wasted resources, no inventories languishing on car lots, and no unnecessary shipping.

And, there is much more to this exciting story that we will cover in subsequent posts. But, it all started by identifying an uncontested, underserved market niche. What aspect of your local luxury real estate marketplace is underserved? That is the first place to look for your new niche.

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The Ultimate Luxury for 2010: Forever Young

Sunrise in our backyard in Carpinteria, California

2009 has stood out as a year when the meaning of “luxury” itself has been dramatically re-examined, re-evaluated and re-defined throughout the world by high net worth consumers and also by the purveyors of luxury goods and services. To be successful in the next decade, as a luxury real estate marketing professional, it is now essential to gain a deep understanding of this shift in mindset that is gaining momentum from material to experiential.

Perhaps, the root of this important change began in the sixties, when a certain poet, expressed that “the times they are a changing”. As baby boomers are reaching the peak of their earning and spending years, it isn’t surprising that they have led the way to this awakening of a deeper meaning of luxury.

Recently, while driving down Pacific Coast Highway on a magnificently clear day we listened to Bob Dylan sing one of his classic songs: May You Stay Forever Young! He articulated for us, in just five words, the most profound wish that we have for ourselves and for others. It is the wish that represents to us the ultimate luxury: To maintain the optimism and invincibility of youth throughout our lives.

We wish for you a very Happy New Year. And, may you stay forever young!

Ron & Alexandra Seigel

P.S. We included the Joan Baez version of this song on video here because it is awesome. Here are the lyrics, too.

May God bless and keep you always,
May your wishes all come true,
May you always do for others
And let others do for you.
May you build a ladder to the stars
And climb on every rung,
And may you stay forever young,
Forever young, forever young,
May you stay forever young.

May you grow up to be righteous,
May you grow up to be true,
May you always know the truth
And see the light surrounding you.
May you always be courageous,
Stand upright and be strong,
And may you stay forever young,
Forever young, forever young,
May you stay forever young.

May your hands always be busy,
May your feet always be swift,
May you have a strong foundation
When the winds of changes shift.
May your heart always be joyful,
May your song always be sung,
And may you stay forever young,
Forever young, forever young,
May you stay forever young.

Bob Dylan-released in January 1974, on the Planet Waves Album-

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Luxury Real Estate Marketing: Is Luxury Out of Style?

1957 Mercedes Cabriolet

Luxury real estate marketing professionals need to stay abreast of current etiquette when conversing with high net worth clients. Economic conditions tend to affect the degree of conspicuous or inconspicuous consumption. But, is flaunting one's wealth ever in style?

Given the current economic conditions and the propensity of the media and talking heads to point out the downfall of the luxury retail market this holiday season, the following question comes to mind: Is luxury itself out of style?

The answer is NO. The essence of luxury is an object or a service that is well made/well done. Again the governing concept of an item is that is of exceptional craftsmanship which implies its long lasting value. A great service implies that you will return for that great service over and over again because it is worth it. The very well to do populace is not the only ones who buy luxury. There are quite a few people who may buy an item because of its "superior quality or performance." They understand that because it is a superior product, its longevity will make the purchase an economically sound decision.

Thomas Chippendale chair

There are people who will drive their Mercedes for 20-30 years. Divide the original purchase price by the number of years, and you will discover that given the performance and the lasting quality with which the vehicle is built, it is a bargain. In addition the resale value is higher, and if the model is sought after by collectors, it resale can be astronomically more than its original purchase price. A well made piece of furniture last lifetimes and is often passed from generation to generation. An authentic Chippendale is worth a fortune on today's market. With falling prices on many durable luxury items, those in the know are purchasing them.

The same could not be said about some luxury purchases. If one were to purchase a pair of satin Christian Louboutin shoes for $1500, the chances of those shoes surviving into the next century are not so great, even though they are well made and well crafted. The intention here is not to condemn the purchase but to illustrate the concept of long term luxury. It is possible that the wearer may be so careful as to avoid every possible scuff and not damage them at all and hand them off to a granddaughter with the same exact shoe size at some point in time!

What is out of style and what has always been out of style is in your face luxury i.e. bragging about and flaunting recent purchases. Etiquette is a lifelong pursuit and is not dependent on economic conditions to practice it. It depends on one's understanding and appreciation of all the conditions that life has to offer and reacting to them in a gracious manner.

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Luxury Real Estate Marketing: Celebrating the Holidays with Localism, Part II

One of the most wonderful promises of the blog, as a communication tool, is that it empowers you to report on local events, customs and perspectives and share them with the world. Localism, a term that is often used to describe this capability, is a powerful strategy for luxury real estate marketing professionals. It can help you to stay in touch with prospective clients who plan on relocating to your area or purchase a second home in your marketplace.

Reporting on local happenings is also great way to of reminding locals (including prospective home sellers and referral sources) about what they love the most about where they live. You can help them to fall n love with their home town all over again and fall in “like” with you in the process.

In our home town of Carpinteria, next door to Montecito in the Santa Barbara area, there are acres of agricultural land. Carpinteria is one of the avocado capitals of the world. It is also the home of some of the best and most successful wholesale growers of orchids in the United States. Most of the orchids that you buy in Trader Joes and major supermarket chains are grown right here.

This year Westerlay Orchids decorated a lovely Christmas tree with orchid ornaments that is displayed in their showroom which is open to the public. Each orchid is placed in a tube with water to maintain its freshness over the holidays. The variety of colors is magnificent and the lights in the trees make the orchids glow.

Now, this is something you do not typically see elsewhere around the world. It is truly local. And, it is a joy to share with you, our friends from all corners of the globe.

Happy Holidays!

Ron & Alexandra Seigel

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Celebrating the Holidays in Santa Barbara: Part I

This is part one of our local coverage of holiday spirit, here in Santa Barbara, California. We were inspired by holiday blog posts we have read from all over the world from bloggers who shared local color, like the first snow of season. It truly helps to make the spirit bright!

One of the luxuries of life in the holiday season is to admire the lovely decorations that signify the end of the year. The creativity involved and the execution gives you a moment to reflect on people’s artfulness. To celebrate the season and wish all our readers a wonderful holiday, we are sharing our photos of local holiday decorations that we found impressive or original.

Today, we had breakfast with friends in the Bella Vista restaurant of the Biltmore hotel overlooking Butterfly Beach. It is a wonderful room with a retractable ceiling to let in the ocean breezes and very conducive to celebration or quiet relaxation. It is a favorite of the locals as well as tourists.

One of the landmark hotels in Montecito/Santa Barbara, the famed Biltmore hotel opened in 1927, as part of the Biltmore chain. Today, it is known as the Four Seasons Resort, The Biltmore Santa Barbara. The hotel has been lovingly maintained and restored. It exemplifies colonial Spanish/Moorish architecture with magnificent courtyards, gardens that feature specimen plants and trees, as well as a croquet lawn. We think that it is one of the most beautiful hotels to visit since it is reminiscent of the grandeur of the era in which it was built.

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Luxury Real Estate Marketing: The Luxury of Lemon Grass

Lemon grass by Velela

Luxury real estate marketing has become an international game. Understanding what is considered to be a luxury in multiple cultures is now a requisite education for luxury real estate marketing professionals.

For example, what is considered to be luxury in Singapore, the fifth wealthiest country in the world? Its rapid economic growth and favorable business climate converted a port city into a major urban capital. In razing orchards and plantations to build high rises and an urban infrastructure, the country’s agricultural output became non-existent. Singapore is a country that imports the overwhelming majority of its food (eggs are the exception) and half of its water. Now, home grown vegetables, fruits, and herbs have become the new luxury.

Greening up the concrete façade of the city began with the chefs of the luxury hotels such as the Four Seasons and the Fairmont, who were not satisfied with the imported organic fare. These chefs began growing herb gardens on their rooftops. This expanded to growing banana trees, chilies, bell peppers and more. Other business and restaurants have followed suit, and are growing lemons, curry leaf, lemon grass and mint.

In a country proud of its gastronomic heritage and a people who value diversity in gourmet fare, this trend of homegrown produce has become vitally importance to continue its dominance as a culinary capital. Using organic produce is also beneficial to the environment as it has an impact of lowering greenhouse emissions. Now, the government of Singapore is supporting residents to grow their vegetables on their rooftops, or participate in community gardens.

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