By Dr. Sanjay Chaturvedi, LLB, PhD.
In boom time everything sells. But in recession and hard times only skills and brand make sale happen in real estate. Most unfortunate happening happened in real estate when an ordinary sales executive who knows how to talk big got annual package worth more than his seven lives would have earned. A package of Rs.1.5 crore per annum is what is got for just making just nothing but production of doing something. The develop thought, I am having 40 flats to be sold at Rs.25 crore each and if I pay commission of 2% on such inventory, I would still save lot of money even if its 1.5 crore package. Just for coordination of sale process and giving report of aggregated reports sent from site or arranging a cabrey dance or mushayra for brokers, the annual package was a lottery or a jack pot he successfully negotiated with the developer.
Now is the time of showing skills. When International economies are in doll drum and National exchequers are finding it difficult to cope up with rise dollar cost and cost of inflation, it is beyond his capacity to understand the situation. He was never trained for such situation. It was like a hindi saying, “Allah mehrban to Gadha pehlwan”. The global melt down and liquidating markets, observed as D-Coupling theory, have severely affected the real estate market too. Those who started their career after 2001, had never seen a slump in the market. Its pay back time for Rado watch and Gucchi perfumes.
The honeymoon is over. Its time to pay the bills. Many of them now thinking that they are really that much worth and wants to leave the job and start their own company for brokering business. Some of the fly-by-night operator who managed to take some slum projects, matured it till LOC and wants to sell the project along with LOC. They never sure to act like a middleman and margin hunters.
The most unprofessional and bad administrators got crown on their head since developers never had opportunities to hunt for a better talent. The conventional way of doing business will now cost them dearer. The Gadha Prasad, who is use to Rado watch and Gucchi Perfumes will be an liability on the organisation and will severely damage the brand he represents. Talking good English and having computer operational knowledge now needs some thing more and that is negotiation skills.
It comes only when you are well informed and know how to negotiate a better deal for the organisation. Pappus like these are there in every big builder’s organisation and looting them for crores of rupees by just doing eye wash. In return, builder’s are passing on these ransoms to poor flat purchasers. Pappu just can’t sell, it is the brand or product it self which is selling.