December 4, 2011

Value Shopping is a Year Round Event

Monday Morning Match is a quick post - maybe a quote, inspirational story or idea - intended to spark some motivation inside each of you so your week gets off to a fantastic start on Monday morning.

"Price Check on Aisle 3"
At this time of year everyone is looking for great deals, discounts and giveaways. Part of the holiday shopping process is to find the best gifts at the best prices. When you're buying a product like a Wii game or a Toshiba flat screen TV, the lowest price could be worth driving a long distance for or waiting in line for a chance to buy it. Of course, it depends on your wants and needs. It really boils down to how much value you put on having that particular product.
When it comes to your service, how do you determine your "price"? Are you willing to be flexible on your commissions? Do you offer some clients more service if they pay you a "full fee"? Do you knowingly give some people less service if you agree to a lesser fee? If so, do the clients understand what they won't be getting when it comes to marketing, systems or service?
Everything is Negotiable
Now this post isn't intended to say that Realtors should never agree to a lower commission. Commissions in real estate are never fixed and are usually negotiable between the broker and the client(check your local laws and statutes). Sometimes, in certain situations, it might make good business sense to lower your fee. Just make sure you are making a logical decision and not an emotional decision. 
It may be wise to remember that some people naturally or psychologically may gravitate towards the most expensive things on the menu as well. Not everyone is looking for the cheapest service or product if it doesn't provide the value they desire. 
What is your value?

As we wind down to the end of 2011, if earning more income in the new year is one of your goals, one way you can do that is to raise your average commission earned. You don't need to gain more business, you just need to gain more belief in your value.
  • When someone asks you what your fee is, how do you answer?
  • If someone asks you to reduce your fee or "do it for less," how do you respond?
  • When the negotiations start to get tight, is your future commission "on the table" to help make a deal or do you keep the discussion between the Buyer and Seller?
Can you imagine if people used some of the same reasoning and objections in real life that we often hear in real estate, how silly it may sound. (Click here if you can't see the video below)

Do you Believe?

As this is the 'Season of Believing,' maybe it's also the perfect time for you to appreciate your skills, service, expertise and all the things you and your broker do to help your clients achieve their goals. You are worth what you are charging and probably then some. Stop dropping your fee for those coupon cutting, discount seeking clients and instead, believe that you are the one item on your clients list that they can't live without. When that happens, your value just went up. They will drive across town or stay up all night to get you.

Have a great week building relationships, solving problems and having fun.