Success in Real Estate - Managing the Future Sales
The Real Estate Professionals and companies that survive the major changes taking place in this industry are those that can quantify what they do and how they earn their money. Additionally, you must be able to differentiate yourself from the competition.
Real Estate is a "Me Too" business and what you do to list and sell real estate is what REALTORS across the country do to list and sell...so, if you want to avoid declining commissions in a "Me Too" business, you must be able to differentiate in another way.
In a "Me Too"business, you cannot differentiate based on the "big things" because everyone does the big things...so you must do many little things your competition does not do. "It's the little things that make a difference."
Look at what consumers, not just real estate consumers, but all consumers are looking for today as they shop for products and services. These items can be referred to as "Consumer Demands" and when you look at what you do, how you do it, and how you market it, bring as many of these driving forces to bear as possible:
Speed - think of fast food and 24 film developing. The quicker you can take care of the administrative aspects of a purchase or sale, the more valuable you are.
Convenience - think of Seven Eleven stores. Also remember that people will often pay a premium for convenience. What do you do for the convenience and comfort of your clients?
Choice - the more alternatives initially, the more consumers like it, but then they narrow it down. Don't we all enjoy choice, from ice cream (31 Flavors) to Coffee (Starbucks). What can you do to give your client more alternatives.
Value-added - people like to get MORE than they pay for, this is value added. Real Estate Professionals provide value added services everyday, but few take the time to re-enforce it to their clients. Have you ever cleaned or painted a house for a client after a sale? Helped them move something...or something like that, an extra, that WASN'T in the listing agreement but you did it anyway? That's "Value Added"
Discounts - If it is convenient enough, you will use a coupon. Lots of people look for discounts in everything they do. This doesn't mean you should offer discounts, but you must be aware that for many this is a "driving force" so play to your strengths in your marketing. Discounting is a legitimate way to compete and so if you do not want to compete by discounting, you must offer consumers something else of value.
Quality - Are you willing to pay more for quality? Many people are. What does quality mean in the real estate business? Maybe from a buyer's perspective it would be buying the home for less...and from the seller's prospective, selling the house for more.
Service - think of Nordstrom's which prides itself in its service. Most REALTORS say they provide service without defining it.
Information - this is the age of information! Consumers won't by a toaster or a microwave without first buying a copy of Consumer's Guide", let alone a piece of real estate. Make it quick (speed) and convenient for your clients to access to lots of (choice) information. Information can become knowledge and knowledge rightly applied is a differentiator.
Deliver the above at every available opportunity and your clients will not only love you, they will send you more business
Real Estate is a "Me Too" business and what you do to list and sell real estate is what REALTORS across the country do to list and sell...so, if you want to avoid declining commissions in a "Me Too" business, you must be able to differentiate in another way.
In a "Me Too"business, you cannot differentiate based on the "big things" because everyone does the big things...so you must do many little things your competition does not do. "It's the little things that make a difference."
Look at what consumers, not just real estate consumers, but all consumers are looking for today as they shop for products and services. These items can be referred to as "Consumer Demands" and when you look at what you do, how you do it, and how you market it, bring as many of these driving forces to bear as possible:
Speed - think of fast food and 24 film developing. The quicker you can take care of the administrative aspects of a purchase or sale, the more valuable you are.
Convenience - think of Seven Eleven stores. Also remember that people will often pay a premium for convenience. What do you do for the convenience and comfort of your clients?
Choice - the more alternatives initially, the more consumers like it, but then they narrow it down. Don't we all enjoy choice, from ice cream (31 Flavors) to Coffee (Starbucks). What can you do to give your client more alternatives.
Value-added - people like to get MORE than they pay for, this is value added. Real Estate Professionals provide value added services everyday, but few take the time to re-enforce it to their clients. Have you ever cleaned or painted a house for a client after a sale? Helped them move something...or something like that, an extra, that WASN'T in the listing agreement but you did it anyway? That's "Value Added"
Discounts - If it is convenient enough, you will use a coupon. Lots of people look for discounts in everything they do. This doesn't mean you should offer discounts, but you must be aware that for many this is a "driving force" so play to your strengths in your marketing. Discounting is a legitimate way to compete and so if you do not want to compete by discounting, you must offer consumers something else of value.
Quality - Are you willing to pay more for quality? Many people are. What does quality mean in the real estate business? Maybe from a buyer's perspective it would be buying the home for less...and from the seller's prospective, selling the house for more.
Service - think of Nordstrom's which prides itself in its service. Most REALTORS say they provide service without defining it.
Information - this is the age of information! Consumers won't by a toaster or a microwave without first buying a copy of Consumer's Guide", let alone a piece of real estate. Make it quick (speed) and convenient for your clients to access to lots of (choice) information. Information can become knowledge and knowledge rightly applied is a differentiator.
Deliver the above at every available opportunity and your clients will not only love you, they will send you more business
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