We continue to discuss the Principles of Influence and how they relate to selling to seniors. Thus far, we have covered four of the six – Consistency, Likability, Authority and Social Proof. Today, we’ll be covering the principle of Scarcity.

When supplies of something are short, we humans are more likely to want it! … “It’s the last one in the shop!” For those of you without kids, the image above is a Nintendo Wii, which is a beautiful example of planned scarcity. Amazing, isn’t it, how this huge corporation somehow is always caught off-guard by the overwhelming demand for their product. Hmmm?

Do people know when your retirement community is about to become complete or sold out? Even better, how about the first phase? Even better, how about the first floor of the first building with the limited number of views towards the lake? Regardless of what you are selling, you need to tell your audience how scarce your supply is– creating scarcity is a key to success. And being able to offer an exact number increases the power of scarcity.

Don’t think this is powerful for selling to boomers and seniors? Let me give you an example:

I happen to know of a retirement community where seniors who called in to schedule visits were given very tight appointment times (this community only scheduled appointments on Tuesday, Wednesday, and Thursday … and would only move on to the next day if the first one was filled).

When the people showed up for their appointments, they were often “in line” waiting for the retirement counselor to see them. The busier the sales office was, and the longer people had to wait (to a point), the more successful the sales person became. Why? Because social proof and scarcity are two very powerful principals. Grouping the appointments in a tight schedule was a strategic decision. You need to be very conscious in your efforts of “displaying” social proof and scarcity. If you are not, you’re cheating your business.

Sources:

Love & Company

Dr. Robert Cialdini

I was pleased to see such an emphatic recognition of the value of good design and aesthetics, both spiritually and in terms of marketability. Too often “good design” and “aesthetics” imply “expensive” and the province of “high end” markets.

As the founder of a firm that specializes in designing and managing the construction of retirement communities, I have always been troubled by the notion that good design is a luxury. Nothing could be further from the truth. Beauty and aesthetics are a natural byproduct of good design. Given the same functional requirements and identical resources, the best designer will produce the best product.

Popular television programs such as Project Runway demonstrate this phenomenon in front of our eyes in real time. Beautiful, engaging apparel is created from seat belts, recycled paper, themed from artwork, or made from repurposed denim clothing. Amazing results are born from seemingly impossible challenges. Good design does not require the finest Corinthian leather or 24 carat gold to be legitimate or sublimely functional. Luxury can be derived from anything that functions well, is appealing to the eye, and evokes positive emotions.

Designing environments that transition to the changing needs of people as they age in place requires high levels of creativity, skill and experience. The physical elements that support independence at every level of need can, if properly conceived, blend in seamlessly, beautifully, and at reasonable cost.

The Power of Observation

Observation and the ability to become the user in your mind are the prerequisites for this challenge. As designers, we can learn something new every day, just by watching the end user.

Recently, my 87-year-old father’s health took a turn for the worse. He went from totally independent and mobile to unstable and frail. He currently depends heavily on a walker, even to get around his own apartment at Charlestown Retirement Community (a Continuing Care Retirement Community, CCRC, that my team helped develop). While his apartment was the best, in fact, cutting-edge when we designed it, seeing my Dad in action continues to open my eyes.

The team at KGRW and Associates helped convert a former seminary into one of the nation's largest CCRCs.

The article's author, Kevin Glover (red vest) with his Dad and some of his family.

Our team, KGRW & Associates, continues to refine our design and construction management techniques through the simple acts of watching and listening. Engaging our customers throughout their experience of aging in place remains the most humbling and important part of the process.

Building, marketing, selling, and operating a successful senior housing project (active 55+ retirement community, continuing care retirement community, senior rental, assisted living, or skilled nursing care facility) today is a lot more complicated than it was just a decade ago.  Today getting zoned, financed, built and occupied within budget is much more difficult.  Not having the proper skill sets and experience on any of these steps can derail your mature market project. These 13 steps, if managed and handled properly, will lead to your project’s success.

1. Due Diligence

2. Demographics/Best Use

It’s also important to analyze potential partnerships with local service providers that can complement your property/product … providing additional insight into the best use for your property while offering additional cost savings.

3. Product Development

Henry Ford Village, Dearborn, Michigan

4. Master plan and Pro forma

An attractive master plan that maximizes your unit count, parking, and open space is the first step in developing a successful pro forma.  Having a realistic master plan that represents reality rather than a designer’s fantasy prevents zoning officials from becoming fixated on the front end of the process with amenities that could ultimately crush your pro forma.  If not avoided, these subsequent changes can be viewed as bad faith on the part of the developer (you) and ultimately derail your project.  In short, once you present town or city officials with any amenities it becomes almost impossible to take them away.  More importantly, developing a pro forma grounded in experience and realistic estimates is the backbone to a logical decision making process of whether to proceed or not.  A working pro forma that accurately includes development, construction, marketing, and operations — along with projected absorption and revenue is key to creating a successful package for attracting financial partners.

5. Pre-Marketing Test

6. Obtaining Entitlements and Approvals

In addition, having prior experience with multiple jurisdictions is often very helpful in getting officials through the unique requirements of senior facilities.  Not having this unique collection of skills and experience can be very costly.

7. Secure Financing/Letter of Commitment

There are still several banks and lending firms providing new construction financing, but the majority of new senior housing construction activity is coming through Housing and Urban Developments’ 221 and 232 programs.  Understanding HUD’s process for loans and time schedules is a very specialized skill set.

It takes more than good connections and a solid pro forma to secure your letter of commitment … understanding how to present your project is vital to achieving success.  A good financial request should include a portfolio of experienced industry players and their track records, a thorough explanation of both macro and micro conditions, projected project returns and an exit strategy.

8. Select and Manage the Design/Pre-Construction Team

9. Create Pre-Construction Advertising and Marketing Program

10. Close Financing

11. Oversee the Construction/Architect’s Administration Process

12. Furniture and Fixture Selection and Installation

Charlestown Retirement Community, Catonsville, MD

13. On-going marketing

Finally, getting in to senior housing or expanding an existing community requires a passion for the people and the industry. Make sure that … you’re working with people that share that passion, what we do is more than bricks and mortar!

Editor’s Note: Tom Mann of Love and Company co-wrote this article with Kevin Glover of KGRW & Associates. The senior management team of these two companies have worked as a team on some of the nation’s most successful senior housing projects over the last decade.

On the horizon is a DVD player so he can watch M*A*S*H reruns and other programs and movies he so enjoys.  And he’s on the waiting list for “Honor Flight” next year, a program that transports World War II veterans to see their memorial in Washington, D.C.

From coffee shops to clothing, the mature market is willing to use their disposable income.

How do you attract seniors to your town, city, or state? And what’s their value to the local economy? Late last year, I was asked to speak at the National Active Retirement Association (NARA) Conference on this topic. State representatives from across the country where in attendance, as was NARA’s founder Dan Owens, who has been harping on this overlooked fact for some time now. The beauty of attracting retirees to your town, is that essentially, the drivers are similar to what drives tourism. And, once you start that trickle of retiree money, it builds momentum like a fly-wheel, i.e., one restaurant attracts another … then an art gallery … then a museum …

Plus, attracting retirees costs less than it does to try to attract major manufacturers. And the return to the local tax base is a whole lot more! Think about how major companies hold small economies hostage (unless you do this, this, and that, we’re leaving). In addition, companies can and do go out of business. Seniors with their social security checks stabilize economies and diversify risk.

Shortly after this presentation, our team was invited to talk to several of the representatives of Opelika, Alabama (Opelika and Auburn are adjacent to each other and have grown to form one fantastic destination). Amazingly, the bulk of their marketing has been done with the young professional in mind. When I showed them the stats favoring boomers and beyond and their spending patterns, they were floored. Next, we reviewed some of their marketing materials, the type faces and fonts where so small and so dense, I couldn’t read it (at least not without getting a headache). Truthfully, they just hadn’t thought about how their marketing materials appealed to retirees. Fortunately, they quickly understood what I was saying. These folks get it! And, they are blessed with fantastic southern weather; a world-class university; charming, walkable towns; some of the kindest people on the planet; and an incredible value proposition from a real estate perspective — not a bad starting point!

Towns and cities all across America are aspiring to be on U.S. News & World Reports’ Best Places to Retire list. The reason -  many urban planners believe that the mature market will bring economic stimulus with them in various forms, such as job creation, a boom in real estate, retirement communities and senior housing sales, an import of savings and reliable incomes. Other advantages of attracting boomers/seniors/retirees include economic and social stability, an increase in the tax base and volunteerism. Compared to wooing industry, retirees are a bargain. But as the massive generation of baby boomers grow older, communities must also be prepared for a growing strain on local health care systems and infrastructure. To read more on the pros and cons of enticing the 65+ demographic to a local economy Master_Retiree_Attraction_FINAL_Report.

Also, here’s a great article about how one Florida town discovered that retirees, not NASA are the economic drivers for their economy.

Step 6: The Reason I Am Calling

Now, we are at the heart of the call, the reason for your call.

After opening the door (see our last blog, 10 Steps to Sales Success For Selling to Seniors – Steps 4 and 5), you are going to say, “The reason I’m calling is because… (Depends on which of the scenarios fit, ie. “as you may recall you requested a retirement information kit” or “as you may recall, you attended our luncheon on Tuesday”)

You are going to end this thought process with one of two things:

Either permission to ask questions or a Box & Close (where the caller is given two choices. “ i.e., so which works better for you, Tuesday or Thursday?”).

Scenario: Follow up to an event. “John, the reason I am calling is that I wanted to follow-up after your visit to the community last week. Attending that luncheon should have given you a small taste of what life is like here. Well, there are a couple of great opportunities next week for you to get become even more familiar with the community, talk with residents, and get a feel for what it’s really like to live here.  Both of these are excellent opportunities to talk with residents because they are relaxed, friendly settings. And they’re FREE! We’re having a resident golf outing on Saturday, it’s a charity fund-raiser for The Believe In Tomorrow Children’s Foundation … and I know you love to golf. And the other thing I thought you might enjoy is movie night on Friday night, which works best for you? Friday night or Saturday morning?”

Note: “And they’re FREE!” is a very powerful term. That’s because research shows us that people will work hard to protect something they already have. The term “FREE” gives them instant possession of that item.

Their response: “Wow, that sounds exciting but I really can’t make it” or “thanks, but I have already gathered all the info I need for right now.” These are objections/conversation stoppers.

So, you will go “I understand, well, since I already have you on the phone do you have a quick minute for me to ask just one more question …” Then go into another open ended question.

Scenario: To book an appointment:

“The reason I’m calling is because …” either permission to ask questions or Box & Close

“Hi, is John in? (Pause)

“Yes, this is he.”

“Hi, John! This is Tom Mann. The reason I am calling is because I know it has been some time since you have talked with anyone here at the Heritage of Green Hills and wondered if you have a quick second for a question?”  (Pause)

And they will say “yes?”

Once, they have said “yes,” the door has been opened for you to ask your questions. Now ask them an open ended question. You can also use open ended questions to help you get by Conversation Stoppers.

An Important Note: Conversation Stoppers/Dead Ends

Inevitably, you will run into someone who absolutely does NOT want to engage in a conversation. Over the years, seniors have learned to  have a natural fear/dislike of sales people. Here’s an example of how they might try to kill the conversation:

“Can you just give me the prices? I really have to run!”

OR

“I really need to talk to my son first … or my wife’s just not ready.”

OR

“It’s just not going to work at this time.”

OR

“I can’t even speak to you right now, my mom thinks I’m trying t put her in an old folk’s home.”

That’s O.K. Remember; they initially ASKED US for information, so we owe it to them to help them get past their natural distrust of sales people. As before, we are going to defuse the situation with a phrase you will come to love, love, love, “I understand completely …”

“I understand completely” disarms the prospect and puts them at ease. It lets them know you understand and have empathy. You will then continue.

“I understand completely. Since I have you on the phone, can I ask can I ask you just one quick question?

“Yes” They will always say “yes.” Why because they just shot you down and now they feel like they owe you (this is the power of reciprocity in play).

Once they say “yes,” ask them another open ended question. Note: Your goal here is to get THEM talking. This is NOT your opportunity to overcome their objections. Do NOT try to do so here. This IS your opportunity to LISTEN and to gather information.

Here are some examples of open ended questions you might ask:

“So that I can better customize your information kit for you, can I ask you are you looking for a one or two-bedroom home?”

“Have you visited any other retirement communities?”

“Aside from price, what other information can I provide you with?”

What made you pick up the phone and call us today?

“Can I ask, what really is the most important deciding factor for you, about the community you will ultimately choose?”

“I sense some hesitation, may I ask what is it that is really bothering you about our community?”

“What is your greatest concern with staying in your house right now?”

What are you looking for in an full-service Retirement Community?

What do you do with all your free time now that you have retired?

“What is your current situation?”

“What’s most important to you in a retirement community?”

“What interests you about our community?

“How do you like to spend your free time?”

“What is it you like about these activities?”

“What are your hobbies and interests?”

“What do you mean by that?”

“Why is that important to you?”

Additional resources:

Love and Company

Boomer Selling by Steve Howard

Secrets of Question Based Selling by Thomas Freese

7 Steps to Successful Selling by Traci Bild

The Power of Nice by Mark Jankowski

Spin Selling by Neil Rackham

Principals of Influence by Dr. Robert Cialdini

Getting to Yes: Negotiating Agreement Without Giving In by Roger Fisher and William L. Ury

Free Marketing and Sales Audit (excluding travel) – call today to ask about our free marketing and sales audit for your community, 410-292-4333.

Selling to seniors? The success of a good senior housing sales team rests in their ability to build relationships over the phone. Why the phone? Because after a retiree requests information, they are WAITING for us to tell them what the next step is. In fact, the mature market needs us to help them break the inertia that comes from living in the same home 10, 20 or even 50 years.

Trust us, no one ever requests information on a active 55+ retirement community, CCRC, assisted living facility or skilled care because they are low on a little light reading. If they have requested a brochure (or retirement information kit as we like to call the brochure), they are in need!

And yet, despite the fact that the phone is the pipeline to sales success, we find it is often one of the most ignored areas of sales training.

Over the next several weeks, we are going to share with you the 10 steps for phone sales success. This system was designed by the Love and Company team … a team with over 40 years of senior housing sales and marketing experience. They have helped sell over 20,000 homes with a settlement pace four times faster than the industry average.

By reading Mature Market Experts, you’ll not only benefit from the Love and Company’s vast experience, you’ll also benefit from the latest techniques and research that will cull for you from the rest of the senior housing industry.

Some of what we will share with you will be old hat, some of it will be brand new to you. In our experience, what separates the top 5% of sales people in the country is a practiced system that is followed religiously.

It is our belief that lack of training leads to lack of confidence and success on the phone … which in turn leads to lack of outbound calls. A confident, well trained sales person loves the phone.

So, let’s get started. The first step is the most obvious, but also one of the most overlooked.

(Write these steps on index card as they appear in the gray boxes, then place them in front of you during your calls, cycling through each as the call progresses.)

Step 1: Environment

Just like a good pilot does a walk through before taking off, you want to make sure that you environment is set up for success.

Never let the phone ring more than 3 times before someone picks up.

It’s important to answer as quickly as you can (always by 3rd ring). It shows the prospect that we are all about prompt service and that their call is important to us. Also, it is a proven fact that people will often hang up if they think they’re call is going to go to an answering machine. People HATE answering machines. NEVER, EVER, EVER, let a call go to an answering machine (unless it’s after hours). Answering quickly gets the call off to a good start!

Give full attention

• There are many distractions going on around us when we pick up the phone; be sure to give your full attention to the caller. Our callers are important to us, so let’s show them we care enough to give them the courtesy of our attention.

• Do not let your computer distract you during your conversation. While you are handling calls the only thing that should be on your computer screen is the customer relationship program and your appointment calendar. Nothing else.  (We estimate that an open email program knocks down your effectiveness by at least 25%).

• If you have an office door, keep it closed during your calls.

Nationally speaking, the average cost per lead for an independent retirement community is in excess of $500. Each time we don’t answer before 3 rings (or we let the WRONG person pick up the phone) we are tossing $500 in the office paper shredder.

Are you ready for step 2?

Free Marketing and Sales Audit (excluding travel) – call today to ask about our free marketing and sales audit for your community, 410-292-4333.

Heritage of Green Hills Serves As Prototype For Super Noggin

Over the next 18 years the baby boomer tidal wave will reach the shores of retirement.  Add to that the fact that people over 85 are now the fastest-growing segment of the population, and the result is that by 2050, the number of Americans 85 years and older will quadruple.

Total healthcare costs are more than three times higher for people with Alzheimer’s Disease and other dementias than for other people age 65 and older, according to the 2010 Alzheimer’s Disease Facts and Figures, published by the Alzheimer’s Association.

According the Facts and Figures report, in 2006:

• Medicare beneficiaries with diabetes plus Alzheimer’s or another dementia had 64 percent more hospital stays than those with diabetes and no Alzheimer’s, and their average per person Medicare costs were $20,655 compared to $12,979 for beneficiaries with diabetes but no Alzheimer’s or dementia.

• Medicare beneficiaries with coronary heart disease and Alzheimer’s disease or another dementia had 42 percent more hospital stays than those with coronary heart disease and no Alzheimer’s or dementia, and their average per person Medicare costs were $20,780 compared to $14,640 for beneficiaries with coronary heart disease but no Alzheimer’s or dementia.

• With family members providing care at home for about 70 percent of people with Alzheimer’s disease, the ripple effects of the disease can be felt throughout the entire family. According to Facts and Figures, in 2008, nearly 10 million Alzheimer caregivers in the U.S. provided 8.5 billion hours of unpaid care valued at $94 billion. In addition to the unpaid care families contribute, the report also reveals that Alzheimer’s creates high out-of-pocket health and long-term care expenses for families.

• Out-of-pocket costs that are not covered by Medicare, Medicaid or other sources of insurance are 28 percent higher for Medicare beneficiaries with Alzheimer’s than those without. Individuals with Alzheimer’s and other dementia living in nursing homes or assisted living facilities incurred the highest out-of-pocket costs – an average of $16,689 a year.
 
Growing prevalence of Alzheimer’s Disease and dementia 

• There are 5.3 million Americans living with the disease and every 70 seconds someone in America develops Alzheimer’s Disease. By mid-century someone will develop Alzheimer’s every 33 seconds. By 2050 there will be nearly a million new cases per year.

• Alzheimer’s is the sixth leading cause of death in the country, surpassing diabetes; it is the fifth leading cause of death among individuals 65 and older.
From 2000 to 2006, while deaths from other major diseases dropped -

> heart disease (-11.5 percent),
> breast cancer (-.6 percent),
> prostate cancer (-14.3 percent) and
> stroke (-18.1 percent) -
deaths from Alzheimer’s disease rose 47.1 percent.
 
Two innovative organizations fight back 

The Heritage of Green Hills, a stunning full-service retirement community for retirees 55 and up, has made a name for itself by pushing preventive health care, rather than reactive health care. “Our residents are some of the most active, independent people you will ever meet. We aim to keep it that way! ” says The Heritage’s Executive Director, Chris Romick. “Currently, we are a country that reacts to health care problems rather than practicing preventive health care. As part of our Well By Design program we’ve teamed up with the not-for-profit LEAF Ltd. Foundation. LEAF has developed an innovative new program called Super Noggin.”

The Heritage of Green Hills.

Super Noggin is a brain fitness program for those who want to stay mentally sharp throughout life.  It is designed to maintain and even improve brain fitness, but following the program also contributes to good physical health – a bonus! It’s the first cognitive fitness program to integrate live classes, advice on computer programs, and behavioral changes (namely sleep and diet) to promote healthier brain fitness.
 
The components of the program promote cognitive challenges, physical exercise, good nutrition, social interaction, stress reduction, and personal reflection.  Super Noggin is compatible with the wellness model of the ICAA (International Council on Active Aging).
 
“We’re honored to be the first retirement community in the country offering Super Noggin,” exclaims Chris, “we know it will make a huge difference in the quality of the lives of our residents. Our Well By Design staff members are among the first in the nation to be Certified … and now they can lead groups in maximizing their brain fitness throughout the year. That’s exciting! ”

Super Noggin Class An Overwhelming Success

On July 1st  the Super Noggin team led a packed room of more than 70 Heritage residents, ages 55 to 88, in a Super Noggin class titled, “Ten Steps To Brain Fitness.” But Super Noggin is more than just classes; it’s about making lifestyle changes that can dramatically improve life.
 
Super Noggin is a comprehensive brain fitness program offering a multi-pronged approach to LEARN and PRACTICE brain-healthy habits and to TRACK progress.
Super Noggin includes:
 
• educational and motivational workshops
• brain exercises to stimulate cognitive functions
• a year-long schedule of individual and group activities to keep your brain fit individual tracking of progress toward a healthier lifestyle

Registered Nurse and resident of The Heritage, Bonnie Ebling likes what she sees in Super Noggin, “We keep active physically. We need to keep active mentally too! When you go to a Super Noggin session, it reinforces things you already knew but you also tend to have a lot of ‘Ah ha’ moments.”  Executive Director Chris Romick agrees, “At The Heritage, our residents believe in prevention through a healthy lifestyle… rather than reactive health care. Our residents want to STAY healthy! Which is why Super Noggin was such a perfect fit for our community. I can tell you this much, people have told us that one of the attractions for moving to The Heritage was the availability of Super Noggin.” 
  

Full Disclosure: Both The Heritage of Green Hills and Super Noggin are clients of TR Mann Consulting.

Mature Market Experts: More news and stats you can use on boomers, seniors and the mature market – Incline Elevators Lift Retirement Real Estate. Many seniors dream of a lakeside home to retire to. Their search may lead them to the perfect house – except it is located on a steep hill. Incline elevators (which look like a small private tram) can overcome these barriers for the elderly, scaling 45 degree angles, and delivering them, and the grandkids to the lake below. While they can be costly (averaging $50,000.),  home buyers may be able to find homes at reduced prices because of the difficult retain. To read more click here.

Mature Market Experts: More news and stats you can use on boomers, seniors and the mature market – Boomers 55+ Housing Wish List. Just what are baby boomers looking for in the real estate market? And what are they actually willing to pay for? According to a recent survey prepared by NAHB (National Association of Home Builders) and the MetLife Mature Market Institute, “55+ Housing: Builders, Buyers and Beyond,” here are the key findings :

• Where Are They Now? Roughly 9% of the respondents live in an active adult age-restricted community, 7% live in a community that is not age-restricted but where most buyers are 55 or older, and 28% live in an independent living community. However, many would consider other options.
• Stay or Go? About two-thirds of respondents (63%) plan to age in their current homes, while 12% plan to buy another home. About one-quarter (26%) are not sure.
• Suburban Life Preferred: The majority of respondents prefer a home in a suburb, with 32% wanting to live in close-in suburbs and 31% in outlying suburbs. In comparison, 28% prefer a rural community, while only 9% want to live in a central city.
• One-Level Living: Respondents overwhelmingly prefer a single-story home (79%) over a two-story home (15%) or a split-level home (7%).
• “Same-Sizing” the New Home: The median size of the respondents’ present home is 1,886 square feet, compared to the median 1,903 square feet they want in a new home. More than half of respondents (51%) prefer three bedrooms, while 18% want four or more bedrooms. About three-quarters prefer the master bedroom on the first floor.
• Downsize on the Price: The median price respondents expect to pay for their next home is $189,426, which is less than the median price of $198,119 paid by those respondents who bought a home within the last three years. This compares to their current home, which has an average market value of $267,401.
• Top Five Inside Features: The five features rated most important were: washer and dryer in the home/unit, storage space, windows that open easily, master bedroom on the first floor in a two-story home, and  easily usable climate control (thermostat).
• Green Is Good, but Not Key: About one-quarter of 55+ respondents do not care about the impact building a home has on the environment. While another 23% said they are concerned about the environment, it does not drive their decision to purchase. Only 12% said they would pay more for an environmentally friendly home. Respondents are willing to pay an average amount of $6,732 (median $4,000) if it would save $1,000 annually in utility costs.
• Top Five Green Features: Respondents cited energy-efficient appliances (79%), followed by solar heating (63%), water filtering systems (58%), allergen-free/chemical-free building materials (42%), and open space (37%).
• What’s Close By? Most respondents listed proximity to a shopping center as influencing their choice of a new community (57% noted it as Somewhat to Very Important), followed by proximity to a hospital/doctor’s office (55% rated it as Somewhat to Very Important).
• Online Is a Must: Technology features are important to 55+ consumers, with 83% of respondents rating high-speed Internet access as Somewhat to Very Important. Also earning high ratings were home security systems and structured wiring (a system of low-voltage wires designed to carry electronic signals throughout a home).
• How Buyers Are Paying for Home: Nearly half of the 55+ respondents (41%) prefer a 30-year fixed loan when purchasing a new home, followed by a 15-year fixed loan (38%). A small number (5%) preferred a reverse mortgage, some type of adjustable rate loan (5%), or an interest-only loan (3%).
• Less Maintenance, More Family Are Top Motivators: Builders were asked to indicate their 55+ customers’ motivations for relocating. Sixty-three percent of builders reported a desire for a maintenance-free lifestyle from their customers, 46% a desire to move closer to children/family, and 32% a desire for lower living costs.

If you are in the senior housing industry (whether you are building, selling or renting active 55+ retirement communities or continuing care retirement communities), this report is a must read.

About:

The MetLife Mature Market Institute®

Established in 1997, the Mature Market Institute (MMI) is MetLife’s research organization and a recognized thought leader on the multi-dimensional and multi-generational issues of aging and longevity. MMI’s groundbreaking research, gerontology expertise, national partnerships, and educational materials work to expand the knowledge and choices for those in, approaching, or caring for those in the mature market.

MMI supports MetLife’s long-standing commitment to identifying emerging issues and innovative solutions for the challenges of life. MetLife, a subsidiary of MetLife, Inc. (NYSE:MET), is a leading provider of insurance, employee benefits, and financial services with operations throughout the United States and the Latin American, European, and Asia Pacific Regions. For more information about the MetLife Mature Market Institute, please visit: www.MatureMarketInstitute.com.

Contact:
MetLife Mature Market Institute
57 Greens Farms Road
Westport, CT 06880
(203) 221-6580 • Fax (203) 454-5339
MatureMarketInstitute@MetLife.com

National Association of Home Builders

The National Association of Home Builders (NAHB) is a Washington, D.C.-based trade association representing more than 200,000 members involved in home building, remodeling, multi-family construction, property management, subcontracting, design, housing finance, building product manufacturing, and other aspects of residential and light commercial construction. Known as “the voice of the housing industry,” NAHB is affiliated with more than 800 state and local home builders associations around the country. NAHB’s builder members will construct about 80 percent of the new housing units projected for 2009.

Contact:
National Association of Home Builders
1201 15th Street, NW
Washington, DC 20005
(202) 266-8200, x0 • Fax (202) 266-8400
www.nahb.org

Mature Market Experts: More news and stats you can use on boomers, seniors and the mature market – New Industry Helps Seniors Downsize and Relocate. Getting people past the fear of downsizing has long been a hurdle that those of us who sell retirement communities, assisted living, or nursing care have long had to deal with. There are over 78 million baby boomers, plus their seniors, who may need to move to more suitable housing in the future. With that comes an awful lot of hand-wringing and resistance, in addition to the physical challenges moving presents to an elderly population. Enter “move management” consultants, who do everything necessary; decorate the new residence to look like the old familiar one, reassure the client, and coordinate the actual movers. Here’s an excellent article by Thomas Heath of the Washington Post that captures some of the challenges of downsizing, click here.

PS    The TR Mann Consulting team … and the loose band of compatriots at Mature Market Experts would like to wish you a Happy New Year!

Mature Market Experts: More news and stats you can use on boomers, seniors and the mature market – Are Baby Boomers Better Off Selling or Getting a Reverse Mortgage? AARP Magazine recently featured several articles about reverse mortgages and the aggressive, and sometimes misleading marketing of them to seniors. In addition to providing helpful guidelines when shopping for a reverse mortgage, one article cuts to the basic question. Before committing to a reverse mortgage, retired home owners should first weigh the pros and cons of selling versus aging in place. They may be surprised to find other alternatives, such as retirement communities, to be a more attractive alternative (to aging in place) in the long run. To read more click here. In addition, they may find alternative options of getting much needed capital like life settlements, a more attractive choice.

Mature Market Experts: more news and stats on boomers, seniors, and the mature market that you can use – Interior Design Key to Aging in Place.

Aesthetics; noun; a branch of philosophy dealing with beauty (Merriam-Webster)

Four years ago I read an article that changed my thinking forever. I had what Buddhist call a “satoir,” or an instant awakening.

The article: Tracing the Flow of the Greek Aesthetic was written by Brian Krause. He interviewed Dr. Harris-Cline, a professor of Art History and Classics, as well as Greek Scholar.

Before you ask: What’s this got to do with aging in place? I’ll give you the substance of the article and tie it in…

Harris-Cline had been studying a phenomenon termed “flow” as described by psychologist, Mihaly Csikszentmihalyi in the book, Flow: The Psychology of Optimal Experience (1990). Flow simply is the experience of being in what athletes call “the zone.” For a basketball player it’s shooting unconsciously and you can’t miss; for the writer it’s writing your best prose without lifting the pen to edit, or the runner who hits that sweet-spot where there is no fatigue, only a quiet zone of endless energy.

Dr. Harris-Cline applied the flow concept to develop her theory about Greek civilization. She suggested that: “The Greeks built a civilization where flow, and flow experiences, was part of everyday life.”

The theory posits that the Greeks developed a culture rich in sensual stimulation. They used incense and perfumed oils for smell; the lyre and flute for music; honey, olives, and fruits for taste.

The Greeks also appreciated the richness of touch, using hand woven fabrics from linen to wool, and created beauty and good taste in their homes. She thinks the Greeks triggered flow experiences from them and over time began to love beauty and beautiful things.

Further, the flow experience brought on by aesthetics allowed the Greeks to produce political and philosophical ideas and inspired works of art that are still held in esteem today. And also helped breed tolerance and appreciation for diverse experiences of human life.

In my opinion Harris-Cline is on to something…and the implications for aging in place and interior design are significant.

I’ve always argued that interior designers are a key element in successful aging in place. The mature market is requesting home modifications to make them more energy efficient, convenient, comfortable, and safe.

What they don’t want is to live in an institution and any changes that hint at infirmity aren’t going to be received well by many older adults, especially boomers. The demand is for non-stigmatizing and aesthetically pleasing products.

Luckily there are designers who understand this and are turning obstacles into beauty. Individuals like Cynthia Leibrock and Michael Graves are liberating mundane assistive devices and making them not only non-stigmatizing, but a delight to look at.

Interior design and aesthetics matter, they’re not just niceties but can make the difference in adopting aging-in-place modifications and even being inspired by them.

Mature Market Experts: more news and stats you can use on boomers, seniors and the mature market – Aging with Style Means a New Luxury Market. According to an ASID (The American Society of Interior Designers) survey of U.S. homeowners, 82% plan to stay in their own home for as long as possible, even if outside assistance and care is required. The survey also found that 52% of American baby boomer homeowners age 45 plus are interested in learning more about how they can age in place – with style not sacrificed for function. Designers see this as an opportunity to develop a new niche market of high end products for mature market homes. For example, the simple grab bar has been redesigned from a purely utilitarian object to something luxurious. So rather than detracting from the look of the home, it actually enhances it. Other modifications being brought into mature market homes include raising the toilet height, lever door knobs, hands-free faucets, lower cabinet heights, and nonslip rugs. To read more click here.

Heritage Pointe of Teaneck, a full-service rental retirement community.

Mature Market Experts: more stats and news you can use on boomers, seniors and the mature market – Tools of the trade for retirement communities – As many of you know, TR Mann Consulting’s stable of mature market clients (our firm specializes in marketing and advertising to boomers and beyond) includes senior living developments (active 55, continuing care retirement communities, assisted living, and skilled care). In the 20+ years that I’ve been involved in the retirement community industry, I can happily report that the industry has evolved leaps and bounds … better product, better management, and better financial reporting. In short, today’s retirement community doesn’t look, feel, smell, or taste anything like the last generations’. That’s the good news. The bad news is that seniors still need to sell their houses to move in to your fantastic community.

Here are some tools our retirement community clients are using to help their prospective clients move forward:

1. Move-in coordinators – Move-in coordinators have been around as long as retirement communities have but their roles are evolving. Once you have a prospective client, the real process begins. I’ve seen way too many retirement communities stop driving the process once the contract is signed. Great move-in coordinators become the “trusted daughter” who makes certain that the move is flawless. They arrange for the real estate partner, the appraisers, the stagers, etc. In short, they do whatever it takes to make the sale go through.

2. Commission for Real estate partners and SRES Designation – Simply put, realtors are motivated by money … if you don’t have enough meat on the bone no one will come to dinner. Motivated realtors can be some of your retirement community’s biggest allies. They know who lives where (as in were your clients are living) and who is getting ready to sell their house. Plus, they can be excellent representatives of your community with some of the hottest prospects.

In addition to offering healthy commissions to all realtors, you want to have a team of realtors that you refer to when a prospect is ready to sell their house. Remember, you want the process to keep MOVING.

Ideally, your realtor should be “Seniors Real Estate Specialists” certified (SRES). SRES realtors are trained to understand and address the wants and needs of seniors. The SRES Council awards the SRES Designation to those realtors who have successfully completed its education program.

SRES realtors have the necessary knowledge and expertise to help your prospective resident through major financial and lifestyle transitions involved in relocating, refinancing, or selling the family home (and as we all know, their home is your retirement community’s biggest competition). These SRES realtors have received special training, get regular updates, and know how to skillfully offer the options and information that your mature market client needs to keep them moving forward.
It is also important that the realtor/s that you choose as your partner have the skill set that allows them to get the house listed at a realistic price. Too often we see realtors get the listing by presenting an unrealistic price … letting the house languish on the market for too long. This can seriously demoralize your customer and risk the sale. In short, interview this partner the same way you would interview a prospective employee. Then arrange for a standing weekly half-hour meeting for updates on how each of your prospect’s houses are fairing. 

3. Stagers – before your prospective resident puts their house on the market, you should arrange for a “House Stager” to visit their home. A good stager can tell them what they need to do to get the house ready for sale … from painting the outside of the house to removing the clutter of too much furniture and keepsakes. The stager should already have existing relationships with experienced, trustworthy service people (painters, plumbers, electricians, carpenters, appraisers, storage facilities, and more). But before you accept your stager’s choice of supporting vendors, make sure you meet each of them in person.

4. Appraisers – a good appraiser is worth their weight in gold. What makes a good appraiser? Obviously it’s important to have someone who is able to accurately evaluate the value of your client’s belongings, but more importantly, you are looking for an ally who will help your client (and you) keep the downsizing process moving. Again, interview this person as you would any of your employees. Look for energy and empathy, they’ll need them both!

5. Bridge Loans – moving at any age is difficult but making this type of lifestyle change can be overwhelming. Remember, anything that can stall momentum is an enemy to the process and to improving your client’s life. Do not let a slow moving real estate market stall the process. Work closely with a bank to provide low interest bridge loans to your clients. This way they can make the move while the house is on the market rather than waiting for a sale. Being out of the house while it is showing will be easier on them and will be better for the realtor. Plus, once they start experiencing your community’s wonderful lifestyle, they’ll be more willing to price their house realistically.

The important thing to remember when creating a partnership with a bank is that the process should be as seamless to your customer as possible. Don’t let the bank scare or confuse your prospective resident with a truck-load of paperwork. Insist on simplicity!

In fact, some of TR Mann Consulting’s clients have simplified the process by acting as the bank themselves. They simply tack on an additional fee to the resident’s monthly community fee to cover the interest on the loan they are floating them (sidebar: in our client’s marketing materials, our residents don’t have “monthly service fees” they have “monthly service packages”).

6. Life Settlements – Many seniors don’t realize that they are sitting on a HUGE untapped asset. Whether term or whole life, they could receive cash for their life insurance policy … found money they could use towards their retirement at your senior community!

Don’t let their hard earned cash value slip away – 85% of all life insurance policies never pay a death benefit and life settlements provide 300% of the cash surrender value on average. How does this happen? Most people don’t understand there are better options than giving up a life insurance policy or getting only the life insurance cash surrender value. In fact, for many seniors the premiums become too much of a burden to pay … and for others, it just doesn’t make sense to continue to pay (if they’ve outlived a spouse or the kids are all grown up) … so they just stop paying the premiums. The bad news is, when they stop paying the premiums the policy often starts to eat itself down (paying the premiums out of their principle). Again, let me repeat, 85% of all life insurance policies never pay a death benefit. And, life settlements provide 300% of the cash surrender value when compared to the life insurance cash value the insurance company will give them.

My retirement community clients are using this tool and getting SALES because of it. Most of their prospective residents have never even thought of their Life Insurance policies as an asset. In fact, many have totally forgotten about their policies until the community sales person mentions it!

I hope you found these tips helpful. There are many, many more tools to discuss but I thought this would be a good beginning. Helping your clients move in to your retirement community is a true service to them. We know they’ll have happier, healthier lives once they’re in their new home. In fact, research statistics from the U.S. Office of Disability, Aging and Long Term Care show that CCRC residents are healthier and live one to two years longer than non-CCRC residents (www.retirement.org/newsletters/trinity/winter2006/care.htm). You owe it to them to be as creative and energetic as possible in your efforts.

Good luck,

Tom

PS      On another day we’ll discuss why none of TR Mann Consulting’s clients call themselves a “CCRC or continuing care retirement community.”

Mature Market Experts: more news and stats on boomers, seniors and the mature market more often – The next decade promises massive growth of the mature market population, especially in suburbs unaccustomed to housing older people. According to the Brookings Institute, “As the first wave of baby boomers reaches age 65 in less than two years, the senior population is poised to grow by 36 percent from 2010 to 2020. Their numbers will grow fastest in the Intermountain West, the Southeast, and Texas, particularly in metro areas such as Raleigh, NC; Austin, TX; Atlanta, GA; and Boise, ID that already have large pre-senior populations (age 55 to 64). Because the boomers were the nation’s first fully “suburban generation,” their aging in place will cause many major metropolitan suburbs— such as those outside New York and Los Angeles—to “gray” faster than their urban counterparts.”

Note: Looking for more real estate stats and figures? If so, click here. Also, I (Tom Mann) should point out that TR Mann Consulting has a team that specializes in developing and marketing communities for boomers and beyond. Our clients include developers of condo projects for boomers to retirement communities around the country (active 55 retirement communities, continuing care retirement communities, full-service retirement communities, assisted living, and nursing care).

1. 2008- three out of four boomers don’t think they’re going to move. Prior to the current financial meltdown, AARP surveyed and found a variety of distinctions between older, younger, men, women boomers on the subject of moving to a one story home, warmer climate, etc.  But if 3 out of 4 on average aren’t relocating, then what are providers like Verizon and Comcast offering them as content in the home?

2. 2009- Sure enough — Boomers and seniors are staying home.  Now the financial meltdown has happened, Pulte buys Centex to prepare for an upturn in home purchases that may not occur for a long while.  So where is Home Depot’s packaged home retrofit offering (not just for earthquakes in Seattle or saving energy)?

3. The population is steadily aging.  Ironic, most firms avoid the word ‘aging’ in their marketing. But there it is. So let’s call it the ‘living independence’ marketing campaign, introduce it in time for the 4th of July, and see Lowe’s, Sears and Best Buy craft multi-dimensional offerings and low price points that help mitigate issues with stairs, entrances and exits, offer packages of stylish bath safety products, and bundles of computers and home networking solutions that Geek Squads can install?

4. Not enough caregivers are available to provide adequate care. Forget futuristic robots and training more nurses running into the home. It is amazing to me that despite multiple home monitoring vendors in the market now, that they are becoming available in selected communities, one reseller or facility at a time. Now I am back to the cable company/ISP, already in the home. Who would a DSL or cable installer or repair rep tell if they believed that a resident could use some technology assistance and/or monitoring?

5. Cost will drive home health care to replace institutional care of seniors. Turns out the VA has already figured this out and been using remote telehealth to great success, including video phone, messaging, biometrics, digital cameras, and telemonitoring. Next up — city WiFi projects (which seem to be everywhere) can branch out. City-to-home, connect where you are, campus to condo. As we’ve seen with the WiFi initiatives, lots of innovation is possible once tech vendors and city planners get together.

6. Adult (55+) communities are headed to the obsolescence heap. So active adults bought into a wonderful lifestyle during the housing updraft — but now they can’t sell, so these communities are re-evaluating age restrictions and a damper has been put on developer enthusiasm. To get these properties sold to younger age groups, clubhouses will need game rooms, outdoor space will need playgrounds, marketing will need to match first-time home buyer messaging. What an opportunity for nationwide realtor firms and even Pulte — which owns oodles of Del Webb 55+ communities.

7. Alzheimer’s — incidence and cost are up — so is fear. At the fear end, the cognitive fitness market of baby boomers seems to be ready, willing, and anxious, no doubt due to family histories. So keeping brains active, although not proven, feels almost like a preventative tactic.  So who will bring the next low-priced (or free) BrainAge to market? Why not Microsoft as part of the next version of Windows 7? Maybe it’s time for Microsoft to buy a brain fitness software company and start integrating. And then at the other end, it’s time for Verizon and Sprint to add a few short words to their market messages about services like Chaperone: perfect for multi-generational familes. See? It doesn’t even have to say ‘aging’!

8. Technology — there’s more of it and it’s more functional. As the 40+ vendors in the 2009 Market Overview make clear, there are many, many vendors of technology out there NOW. So service providers, integrators, resellers, distributors — it’s feasible to package and market these products — at multiple price points, through press coverage of demos, advocacy from councils on aging, even with all of the fund cutbacks and economic slowdown. Really.

9. Baby boomers have parents in need. During the real estate and interstate migration boom, many of us spread out across the country. But with videophones from D-Link or Skype, a camera, and a PC, we can be connected, use home monitoring technologies for motion detection, help with med reminders, and offer a detectible cell phone. Vendors can message to a continuum of caring, during that interim period before boomers decide to yank mom or dad out of their home and closer to them.

10. Nursing home residents are moving back into community. For good or ill, communities are on a rampage to get individuals out or avoid entrance into a nursing home. So the most frail, most at risk individuals are going to find their way back into continuing care, independent living, apartments, and homes. Are home care agencies, personal emergency response vendors, and medical supply firms all thinking through the services and products that this implies?

Finally, a lesson in seizing opportunity — the stimulus plan ink is barely dry and tech vendors are already running sales training programs to help non-profits, schools, agencies prepare grant requests. Training packages were being assembled before the bill was signed. From the WSJ: “With the recession forcing corporations and institutions to cancel projects, technology suppliers are eyeing the economic-stimulus package as an elixir to keep revenue flowing. It earmarks more than $100 billion that could be spent on information technology.” You gotta love it.

Editor’s Note: Laurie Orlov blogs for Aging In Place Technology Watch

Mature Market Experts: more mature market news and stats more often – Mature Market Becoming More Eco-Friendly – As energy prices continue to raise, more boomers and seniors are responding by looking for fuel efficiency. And unlike the energy scare of the Carter years, this time the response seems to be sticking.

“According to a survey conducted by Norwich and Peterborough Building Society (N&P), 69 per cent of people said they are more likely to install energy efficient features in their homes now compared to the same period last year.

When asked if they would incorporate green features such as solar panels, ground source heat pumps and wind turbines into their homes, the vast majority – 87 per cent – said they would.

Some 55 per cent of people said they would consider a self-build, with 43 per cent of over 50s saying they would like to build their own environmentally-friendly home.”

Source: Millennium

For many years, most in the business of building retirement communities said that there was little to no marketing benefit to pushing environmentally-friendly construction . . . particularly with the more senior market. This trend is rapidly changing as Americans become more concerned about fuel efficiency and passing along a healthier earth to their grandchildren.

Mature Market Experts: more mature market news and stats more often – Boomer Real Estate Preferences – “An National Association of Home Builders (NAHB) survey of consumer preferences shows that Boomers prefer single-level living with three bedrooms (compared to their younger cohorts who want four bedrooms in a two-story house). Ease of maintenance, energy efficiency and an emphasis on quality were other preferences expressed by Baby Boomers for their homes.

The National Association of Home Builders is sponsoring a conference in April in Philadelphia called the “Building for Boomers & Beyond: 50+ Housing Symposium.”

Source: Baby Boomer Examiner

Note: For a ton of great real estate stats and figures, click here. Also, I should point out that TR Mann Consulting has a team that specializes in developing and marketing communities for boomers and beyond.

If sold properly, elevators could be a common occurrence in Boomer households.

Here’s some mature market products that can help boomers and seniors stay in their homes (The Today Show). If only companies understood how to market these products . . . they would be selling the hell out of them.

And in case you were wondering, TR Mann Consulting can help.