Top 3 Reasons Discount Real Estate Brokers Take Your Business.
March 14th, 2007 Uncategorized, Real Estate Marketing Landon Ray
It may seem obvious why real estate discounters win: ‘they’re cheaper.’ But I submit that the real reasons have more to do with marketing.
Businesses don’t win because they’re cheaper. In fact, ‘cheap’ is a far harder road to travel in business; you have to sell more than the high-end guys, and someone always comes along who’s willing to go out of business faster than you.
Besides, the fact is that consumers aren’t cheap. It only takes a moment of reflection to see the vast and rising tide of spending on luxury goods and services. From super-luxury spas and cosmetic dentistry, to designer jeans and celebrity mace the high-end is becoming mainstream.
Then why are discounters taking business from full-service agents? Here’s the top three reasons:
1. Discounter’s value proposition is crystal clear.
“We’re cheaper.” That’s not hard to understand.
When consumers have no other means of determining value, they will choose based on price. That is, if your value proposition isn’t absolutely clear to consumers you will lose.
Here’s an exercise: ask your best friend why they would recommend you and your services to their loved ones. Is their answer compelling? (hint: ‘you’re a good guy’ is not.) If your own best friend isn’t completely clear about your value proposition, how do you expect consumers to choose you?
2. Discounter’s marketing hammers their message home.
They don’t send out postcards with gardening tips or recipes. They’re not talking about their integrity and experience and how their going to ‘go the extra mile’.
They’re talking about cheap. They’re pounding their specific value into the minds of consumers with every communication. Their business card says it, their postcard says it, their ads say it. They tell you at parties.
It’s a cohesive campaign wrapped around a dead simple value proposition.
3. Discounters have an enemy.
Buying is an emotional process. Buyers, no matter what they’re buying, choose with their hearts and then justify the decision with their minds.
‘Having a common enemy’ is a classic and powerful emotional tool. Their enemy is you, and the message is ‘they are gouging’. That’s pretty easy to get worked up about. Particularly when so few full-service agents are clearly articulating what it is, specifically, that makes their service worth every penny.
Discounters win not because they/re cheap, but because they mount an effective campaign that drills a specific value message into the hearts and minds of consumers.
What is your specific, tangible value? Do your prospects understand it?
Perhaps more importantly, are your past clients and members of your sphere of influence completely clear about the value you offer? After all, it’s tough to deliver a powerful referral when ‘she’s a nice lady’ is the best they can muster…
