Here is an exercise for you to consider.
You have most likely been on both sides of the equation. You are definitely a customer. Meaning you frequent certain stores and buy certain services on a monthly basis from different companies and organizations.
And most of us have also been on the other side of having to be the person who provides those services and products for our own company or our organizations customers. Whether you are doing directly or indirectly.
So what makes a great customer? What is interesting about this question is you don’t see very much information on this question on google. Anything related to customers is usually the other way around. Meaning, how can a provider be a better provider to their customers and provide better customer service.
Here is my simple list of what makes a great customer:
- They love your product
- They are willing to pay the price for your product
- They use your product exclusively
- If you take your product away from them they are willing to pay more to keep it.
- They value your product.
- There is an inherent need for your product.
- They pay a recurring fee to continue to use your product.
- Somewhat difficult to change to another provider of your product.
I am sure we could come up with more on this list. But I think you get the point here. A great customer realizes they need your product or service as much as you need them.
I think this is when the relationship works best.
So why does income producing real estate have the best customers. Look at the list.
The person needs your product. Everyone needs food, water, clothing , and shelter. Period. In that order as well. So it is essential.
They pay a recurring fee on a monthly basis for your product. All of my customers pay monthly. Sometimes they may even pay in advance.
And it is somewhat difficult for my customers to switch to another provider of my product. Sorry, but it is true. Nobody likes to move. It is a pain in the ass.
Now, on the flip side of the equation. As a provider of housing I must do my part as well. And I must provide great customer service.
I have to serve the needs of the customer on a daily basis. I have to respond to their requests. I have to make sure all of the appliances are in good working order. I have to make sure things are kept up. This is my obligation in the relationship.
And it isn’t very hard to do these things. The old “slumlord” moniker doesn’t apply in my world. I take care of my tenants and my properties. It would be stupid not to.
For all of the reasons I outlined above is why I believe income producing real estate has the best customers. Additionally, owning income producing real estate is a business that anyone can do, including me.
To your success and your future.
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