Any agent who thinks that cheap fees is the future needs to
take a moment, shower in cold water , open their eyes and take a good look at
the real world. Cheap fees has been an issue faced by agents since the dawn of
time. It is not new and is not going away.
It is very frustrating to have an established agency business,
with established pricing and profit margins only to have some whippersnapper....
... start up (more than likely running it from his bedroom to save costs on office space and staff) , a one man band or big box Foxton’sesque chain to mess up the marketplace with their 0% opening deals. A lot of agents feel that is the future and it will be a future of scraping together a paltry living as everyone struggles against the cheap fee agents. We are all doomed!
... start up (more than likely running it from his bedroom to save costs on office space and staff) , a one man band or big box Foxton’sesque chain to mess up the marketplace with their 0% opening deals. A lot of agents feel that is the future and it will be a future of scraping together a paltry living as everyone struggles against the cheap fee agents. We are all doomed!
Or are we?...Sorry peeps ..Nothing is further from the
truth.
In most cases facing a cheap fee agent is a sales
issue. The problem is very few agents train their Valuers and Listers effectively
and so the price issue becomes a brick wall.
In the eyes of the home owner or landlords, there are loads
of cases when a competitor offers exactly the same service, delivered in the
same way at a much lower cost but let’s be honest, this is quite rare. In most cases the lower prices means
less of something, a pared down “service” and it’s the role of the Valuers and
Listers to bring that to the forefront of the house sellers mind.
So, let’s say we have a situation, where you quote 1.5%
and mateyboy’youngwhippersnapper’(run
fromyourbedroom rolls in at 0.5%
I have seen this happen many times as I am sure you have.
The Valuer or Lister scrambles for reasons to justify the higher fee but does
not remove the thought from the buyer’s mind that he can save a lot of money.
In the end, the Valuer and Lister feels dejected and diminished.
This is where good training and sales preparation can make
the difference. It is essential that Valuers and Listers always take control of
the conversation at the free valuation. Instead of hoping that the homeowner
doesn’t find a cheaper fee, the Valuer/Lister should deal with the issue right
from the first meeting.
With some effort a Valuer/Lister could create a portfolio of
properties that a 0.5% agent had sold, and comparable ones that they sold for
more than the difference in fee and contrast service, content and price
achieved.
A savvy Valuer/Lister deals with this in the first
conversation by making the homeowner aware that the fee you are providing means
that he or she will get the best price in the best possible time and with the
best attention to detail (compared to Mr 0.5%). Why not combine it with a list
as long as your arm of testimonials and recommendations from satisfied homeowners
which should bulletproof your own pitch.
Every fee objection must be dealt with but it is essential
to prepare for objections so that your response is powerful and iron clad. If fee
objections could not be dealt with there would be no premium brands!
Think about it .. how the hell does a well known Hut like Pizza
House sell a pizza for £13? How do some agents get away with selling their
management for 12%, even 14%?
Take control of the customer conversation at the free
valuation. Know the house seller and know the possible objections and deal with
them one by one during the free valuation, blowing a hole in the apparent value
of the discounted service and at the same time justifying the service you offer.
If the Valuer/Lister leaves objections to follow up on the chase up chat, then
they are on the defensive and look like they are making excuses.
It is essential that agencies invest in training to provide
salespeople with the tools to effectively deal with market conditions. Now,I
don’t provide such training as my speciality is business generation and because there are much better people out
there who do that sort of thing (training for fees) .... my favourites are Sam Ashdown, Stephen
Brown and Richard Rawlings.
Take advice from the professionals, and trust me, these
three are the best!
You can teach an old dog new tricks .. get your backside down to Agency Ninja School .. and learn from the masters!