Is the cheapest real estate agent the best value? The worst ? Are they all the same ?

Some people on facebook have been proudly saying they offer full service, get great prices yet charge half that their competition do. And whilst I applaud them, and absolutely, if they are telling the truth, would list with them, or at least put them on the shopping list, so the consumers win, but what about THEM ?

Someone selling a .50c can of coke, yeah the consumers definitely win, but the guy who only makes .05c profit on a can of coke better darn well make sure he’s moving a lot of units. As he will be the first and most affected if something happens to drop volume levels. (and of course drops in the market never happen in our business do they?)

My question is, if you are good enough, and your clients love you, that you could charge 50% more money, or 100% more money, then why don’t you? Why let your competitors offer less service, do the wrong thing by clients, cost them tens of housands that you could’ve got them, and they charge more? How can that be? Why, because they found a way to get the clients to agree to it.

It isn’t how much you charge, it’s how much, in the eyes of the consumer, are you WORTH ?

See charging a lower fee is a valid method of diiferentiating you. God, people have done it for decades, but a mentor of mine once said, ‘competing on price is valid but dangerous, because you’re the first and most affected in changing econimic times’

So why not get your clients to choose you on criteria that actually matter. I saw this pic recetly, and thought it was so appropriate for our business (yes I’m a Star Trek tragic, haha)
Real Estate Commission
If you can create the feeling in the mind of your prospective client, (and of course that needs to be based on reality, not some fictional ability in your mind) that you are a return on investment. That you are the $20,000 difference on their bottom line, then you can easily put out your hand for those few extra thousand dollars.

I sell one of the more expensive CD/DVD box set home study courses on the market, at a price point of $3600. How do I do that? By proving conclusively, that it will add $50,000 per year PLUS of very real money into the bank accounts of my clients who implement the strategies. In effect, I am selling ‘money at a discount’

Easy, easy product to sell. (I should know, I have sold hundred dollar notes for ten dollars at seminars before, you should see the rush of people wanting to buy them !!!! )

Now a bunch of you guys have asked me for some help on how I get most of my clients to be considering RAISING their fees while the rest of the industry are scared they will have to drop them.

So I am getting on a masterclass training, this Thursday night. (with one of my mentors who is EXPERT at defeding high fees, so come join us on this webinar,

Completely Free !!!

https://attendee.gotowebinar.com/register/7556535853699794178

Join us this Thurday 6pm Qld time (do your own daylight saving / interstate calculations, it does my head in – but my guess is 7pm NSW – 5pm WA – 530pm SA – but really I’m not 100% sure about any of them except 6pm QLD !!!)

Comments 4

  1. Tracey McLeod

    Hi Glenn,
    You’re a very insightful guy and what you say is so true. You’re a great inspiration to those of us who aspire to be truly successful.
    I have also struggled with the question of price as most agents ask up front what my property styling services cost. Some discard my service based on price and go with something cheaper or nothing. Those agents and homeowners who use my service never quibble about the standard of service they receive or the results they achieve. We’ve made between $20,000 and $300,000 difference.
    At the same time, I have a colleague who wants to compete on price. I’ve noticed that discounting makes you rush and cut corners because the priority is no longer complete customer satisfaction, it is getting paid.
    I want a sustainable business with an excellent reputation, not a quick buck.
    I hope lots of people use your training Glenn.
    Regards,
    Tracey Showhomes

  2. Peter Kafkas

    Hi Glenn,
    People Its not about cheaper fees, what I have learnt from your course is to show the client value. Sellers buy value! There is no full service agent that offers what I offer (at least where I work in the NT) and if I ca expose their property to more eyeballs that any other agent, therefore in return get the an extra $5000 – $25,000 in their pocket all of a sudden my 3.3% commission, against the cut price agent of 2% starts to look attractive. Anyone call sell property but no one can expose/market a home like I can. World class marketing, world class negotiation and putting in the hours makes all the difference in the world.
    Glenn stop charging $3600 its a give away, I got my $3600 in the 1st month, don’t believe me, call me! 0404 877 261

  3. Deb

    Hey Glenn, great post as it’s a great stumbling block.

    I think this is a big issue for all businesses – but especially agents, as many don’t seem to know how else to differentiate. Of course it’s the same for property stylists too πŸ™‚

    I will never discuss price upfront, coz it’s not about the price. It’s about the value, and a number in isolation just doesn’t convey the value.

    Interesting to hear your take on this πŸ™‚

    Cheers, Deb
    Mink

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