Resources & Blog

The Cow in the Convertible

In community presentations and focus groups people often ask Retirement Dynamics, "What's the best deal: a Lifecare or fee for service retirement community?" or "Is it better to pay a smaller entrance fee or get a refund?" These questions are often another way saying "I'm not ready yet." Here are some ideas to help people get themselves ready to make a decision they will be happy with.

Retirement communities are like any other business: they cost what they cost. There are no bargains: best will always cost more than worst, but that doesn't mean all communities are created equal for you. The good news is that there are 2,000 retirement communities from which to choose, and often you have more than one important choice within the same community.

If you begin by picking the "best deal" you are likely to end up carrying cows in your convertible. Yes, you could make that work, but you wouldn't be happy with the results.

Before you think about the "deal," think about what would be a successful retirement for you. First, decide which characteristics matter most to you. In the list below, the easiest questions are listed first. Do this homework before you start the field work of visiting communities and reading brochures.

Have You Walked Your Community Recently?

When was the last time you drove into your community and actually walked the path that your prospects walk every time they visit? When was the last time you walked the halls where they walk to see your major amenities? Better yet, what might you find if you came for a "Guestpitality" overnight stay in one of your guest rooms?

Sometimes we just don't see the forest for the trees. Sometimes we need a wake-up call!

Here's a list of items to spot consider as you walk around:

Audits Work

Planning Your Work, Working Your Plan

Virginia United Methodist Homes (VUMH) has 6 CCRCs in the Commonwealth of Virginia. The organization's newest community, WindsorMeade in Williamsburg, opened in July 2008. Like many of the other CCRCs in the United States that opened during the recession, WindsorMeade faced a rapidly changing market:

• Values and the pace of home sales in the PMA dropped by 25% before opening
• Entrance Fees in the community were more than double the average home value in the PMA
• The percentage of depositors and residents from the PMA dropped below 60%
• Attrition of 10% depositors was more than 60% higher than projected
• Established and respected competitors offered lower Entrance Fees

Efficiency, Efficiency and Efficiency

When I heard these concepts for the first time, the TV talking head was referring to the economy, but they apply very well to retirement community sales and marketing programs.

Most of us would agree we need to be efficient, but what is efficiency (other than a one-room apartment that's agonizingly difficult to sell)? Your image of an efficient person likely is one who is competent, well-organized and able to function with minimal waste leading to fast work turnaround. However, if you dream of creating an efficient community, a balanced, successful program needs to address three forms of this concept: allocative, operational and adaptive efficiency.

Sales - More Than Simply A Job Title

“People don’t care how much you know until they know how much you care.”      
-Theodore Roosevelt

I am called a salesperson because I am a person that sells…no surprise there!  Sales are the results that I achieve and the value that I add to the retirement communities where I work.  To me, it is not simply a job title.

As a frontline salesperson, I am always excited to learn new sales tips and benefit from the advice of others.  By attending seminars, reading industry-related material, and practicing what I learn, I strive continually to better my sales performance.  After many years of selling retirement housing, especially CCRCs from Florida to Seattle, I’ve found that there doesn’t seem to be any new fabulous sales techniques, just the same suggestions, described in countless ways.  Although the sales tools may appear to be the same, each prospect that walks in the door has a personal story; each one that I call or meet with has his or her hopes for the future.

Achieving Sustainable Growth From Within

A company that emphasizes growth from within (also known as organic growth) does just that; they start building the business from the inside out.

Edward Hess, Professor of Business Administration at the University of Virginia’s Darden School of Business, conducted extensive studies of public companies. After examining 800 companies, Hess found that just 22 consistently created significant economic value for their shareholders and excelled in their industry through organic growth. Rather than relying on smart acquisitions or clever marketing, these companies grew from within by focusing on building their customer base, creating new products, and operational efficiencies.

A Bit of Nostalgia

Thanks to all who helped Retirement DYNAMICS celebrate its tenth anniversary at LeadingAge DC in October.  The "W”, Washington, DC’s, Rooftop Lounge overlooking the Washington Monument was a great setting for such a celebration. If not for our 170 clients and partners we would not have had ten years to celebrate. Great views, great libations and great friends.  THANK YOU ALL!!

LeadingAge Conference Contest Winner

Congratulations to Marcia Hoffman for winning the IPad2 at the LeadingAge conference last month.  Marcia was kind enough to drop by the RD Booth at the convention and share her card for the drawing and we are happy to share her good fortune! Marcia is the Executive Director of a CCRC in Pennsylvania and we feel certain she will find ways to use this new tool to keep track of all her responsibilities and maybe play a few games of Angry Birds too. Thanks and congrats again Marcia!

Necessity is the mother of reinvention

A community reinvented

Located in a resort development in Florida, Glenmoor opened in early 2001. In 2003, Retirement DYNAMICS was engaged to perform a marketing audit and was subsequently hired to provide full service marketing consulting. Within 18 months, the community achieved 95% occupancy and remained at that level or higher for the next 3 years. Then the real estate market began to deteriorate.  Also stung by the financial upheaval in 2007-2008, occupancy began to slide.  Nevertheless the community maintained an average occupancy near 90%.

Fast forward to 2010 - lead generation slowed and the sales pipeline began to shrink. Additionally, only half of the move-ins during 2009 and 2010 were coming from the PMA. Dramatic action was called for: the community would have to re-invent itself. Retirement DYNAMICS was hired once again to provide marketing and sales management services. RD made several recommendations that management approved which led to significant changes resulting in achieving new marketing heights.

Is the Future Up, Down or Sideways?

Auguste Comte, one of the founders of sociology, coined the notion of “social physics” to describe how humans in society are analogous to molecules. The performance of one is unpredictable, but the behavior of many often falls into recognizable patterns. As a familiar example, physical gravity is colloquially used to describe human behavior; “what goes up must come down” applies as well to the stock market as to Newton’s apple.

Simple graphs use the social physics analogy to illustrate how your community might have changed and will change as time goes by. We may not be able to describe the future in words, but we have an intuitive vision of where we are and how things will change. If members of a group hold different visions, agreeing on direction and action can be difficult. Because these graphs are abstractions they may evade personal agendas, entrenched positions or even shyness that can distort purely verbal discussions.