Vacation homes are among the ultimate discretionary purchases–-something most people want, but do not absolutely need. Wanting is not synonymous with purchasing. This article demonstrates how techniques of relationship selling can actively involve affluent purchasers in the sales process and lead them toward a making a commitment to purchase.

Definition of Affluent

For purposes of this article, the term, “affluent,” is used to refer to the income qualification for fractional interest ownership—a minimum of US$150,000 annually and for private residence club ownership—a minimum of US$250,000 annually.

Ten Insights into the Mindset of Today’s Affluent Purchasers

Following are ten important insights to keep in mind and act on when dealing with affluent potential fractional purchasers.

1. The “New Normal”

As a result of the recession, the economy has been transformed from a “spend society” to a “save society.” Purchasers have become thriftier, more cautious and less trusting. They have sustained significant portfolio losses due to relying on the advice of financial advisors. They have therefore become more suspicious of nearly anyone trying to sell them something.

2. Financially Conservative

Contrary to popular belief, most of today’s affluent people have not been born into wealth. The vast majority come from middle-class backgrounds and hold on to their middle-class values: hard work, perseverance, integrity, treating others well and thrift. Despite their financial success, most still believe they must spend their money carefully. They treat their household budget and personal expenditures according to the same principles that have brought them success in their businesses.

3. Money Is Important

The affluent believe that money is important They comparison shop—often on the internet—in order to find the best deal for themselves. Value is as important to them as it is to other purchasers. They like bargains and discounts. They clip store coupons. Though they love a great deal as much as the next person, a discount or rebate on its own is not enough to persuade them to purchase a fractional interest they don’t genuinely like and does not meet their vacation needs.

4. Money Has Always Been Important to the Affluent

The affluent have always been cautious, frugal and careful with money, Most tend to live within their considerable means. That’s why they are affluent. The “new normal” is not “new” to the affluent. It’s normal.

5. Time Is Money

For the affluent time is money. These are people who TiVo favorite television programs so they can watch them at their leisure sans commercial interruption. Sales people need to respect the time schedules of their affluent purchasers and not talk too much. Enough said.

6. Numerous Options

The affluent arrange to have numerous options of properties to purchase, including purchasing none of them. Having alternatives enables them to negotiate the best deal for themselves and walk away from opportunities that are not advantageous.

7. Careful Decision Making

The affluent take their time deciding whether or not to make a large purchase. They could need as much as a month to think over carefully what to do, if anything, about a fractional purchase.

8. Resistance to High-Pressure Sales Techniques

Heavy sales pressure is counter-productive. Time deadlines, price rises and fear of loss of an opportunity are more likely to stimulate resistance or disappearance than agreement to purchase.

9. Independent

The affluent are successful professionals and heads of successful businesses. Some of them are entrepreneurs who have founded one or more highly profitable businesses. They are independent and prefer making their own decisions, rather than relying solely on the advice of others, particularly if in the past, this advice has led to financial losses. An agent can “tell” customers what to do, but why should they listen? What can an agent possibly say to persuade these high-achievers? In who’s interest is the advice given?

10. Devoted to Family

Family is vitally important to the affluent. For them, the most rewarding aspect of life is time spent with children and grandchildren. Time with loved ones is far more important to them than time spent at work. Nevertheless, they report that they split their time about equally between family and workS. When asked what they would like more of, the top answer among the affluent was, “More time with family.” This contrasts sharply with the responses of those with incomes of US$75,000 who reported, understandably, that they would like “More money.”

Given this mindset, what can a fractional sales agent do?