So you think your business model is ok? Your pricing strategies competitive?
Would you agree that when buying a service, you would pay more for quality service and what you feel is a better value for your hard earned dollars? Well if you feel that way, is it not reasonable to think that buyers and sellers have the same regard for Value VS. Price? Of course they do. In fact a recent study indicates that 90% of buyers and sellers of real estate are more motivated by value when choosing a Realtor where only 10% felt that price was the most important factor in choosing a Realtor. This is paramount news when it comes to your business!
So if this is how the consumer feels about Value VS. Price, why as an industry are we so focused on price? Here’s why: because if value is perceived to be “the same” among all then price becomes the only important factor
in the decision making process. Most Realtors cannot provide enough value to differentiate themselves from the over populated Realtor environment. Now before you become affronted and start commenting on this article, understand that I am one of you. I am an active real estate broker/owner and sales person and I know that it is becoming harder and harder to captivate an audience that is tainted by the perception of Realtors and the true value they bring to the table.
One thing I realized very early in my business career is that 10% of people will take up 90% of your time…and not appreciate it. So I have two solutions to this problem. First: fire or don’t deal with the 10% that only are focused on getting the “best price”. Let the Realtors that have little to no value proposition of differentiators deal with them. You on the other hand, can strive towards dealing with the 90% that are enjoyable to work with. These peoples are ones that value you and your time, who will work with you as part of your team to get their home sold or help them find their dream home. The problem here folks is that even though this 90% is great to deal with, they still expect value and if you can provide true value to them, then business will happen for you naturally.
Now I know you may be asking yourselves “how exactly can I create better value and what can I really do to differentiate myself from all the other Realtors out there”? If you’re not asking yourselves those questions then stop reading this now and go and enjoy the 10%…the point being, there is always room for improvement! If you are questioning your business model then I have done my job. I have got you to look at your business and see where you can do better.
One suggestion I will make is that you never stop educating yourself. I recently took part in a Richard Robbins three day event called Achieve 2010. I came away with some great ideas, insights, tips and strategies that I could implement immediately. If accountability is your problem then I would suggest a coach. Yes, coaching can be expensive, but so can having little to no business. We all know this business is expensive to be in so you must maximize your profitability as quickly as you can and if you cannot be self motivated, then a coach is definitely your solution.
If you want to create better value in the eyes of the consumer, it is imperative to spend some time creating a great marketing, advertising and Internet strategy that is not the same as every other Realtor out there. Browse the internet, look at billboards and street ads- don’t you ever get sick of seeing the same old same old? The same messages, the same promises. What are YOUR best qualities? How can you use those qualities to differentiate yourself and what qualities do you possess that you know you can maximize to improve your business? I
recently wrote a blog reiterating thought-leader Simon Sineks vision of understanding the importance of your “Why”. WHY do you do what you do? What are your real beliefs about great service and amazing value? What do YOU expect when you are in the role of a consumer? Are your beliefs in sync with your consumers’ beliefs? Again, people don’t buy what you do, they buy why you do it.
I can tell you from experience that taking the time to develop great systems, presentations and unique propositions will pay huge dividends in the future. If you believe your strategies are less than par and you can admit to yourself that the road you are on now makes you just “one of many”, stop doing what you’re doing! Step back and look at your business and ask yourself…would I pay more for my own service? What value do I bring to the market?