What Is Your Value Chain?

Late last year, I read a Real Estate Business Online article entitled, Purplebricks already effecting ‘dramatic change’ in commission-charging agents’ behaviour. It quoted Purplebricks global COO Neil Tavender stating that since entering the Australian market, Purplebricks has caused traditional agents to reflect significantly on how they operate.

Tavender was quoted as saying, “We have seen in some instances where commissions have come down from 2.5 per cent to 1.8 per cent. But obviously with the fixed cost models that they have, with premises and associated costs, that is not a sustainable future.

Personally, I think this is a bit of a stretch. In states where the market was tanking, WA for example, you hardly hear of Purplebricks. Pittard has clients across Australia and none have raised Purplebricks as being a threat.

The fact is, weak real estate salespeople have been discounting their fees to win business long before Purplebricks came along. The recent boom in some states was the reason some salespeople discounted their fees – they wanted to win listings and discounting was the only way they could see to do it.

But Neil Tavender does make a good point: discounting is not a sustainable future.

If you feel that you must discount to win business, if you think that fee is all you’ve got, you have no alternative but to be cheap. And no matter how cheap you are, somebody will always be cheaper.

A better way to win business at a fair fee is to prove your VALUE CHAIN. Your value chain consists of things you can do for sellers that other agents do not do.

To create a value chain, think: why should sellers list with you?

You say you are good, but in what way?

Salespeople often give this little thought. The result is that they look the same as their competitors. When you look the same, you can only compete on fee and giveaways – lower your fee, or perhaps throw in some premium advertising.

Cutting your fee, or adding incentives, cuts into your profit. It demonstrates a lack of business acumen. And if you lack business acumen, how could you expect sellers trust you to sell their properties?

Think about your value chain – it’s the key to winning business with a fair fee for your hard work. Leave discounting to those who have no value to offer.

Gary Pittard

Recent Articles

Love Of Quality Work

Are you the type of person who does just enough to get by at work, or does quality work mean something to you? Real estate agency profit consultant,...

A Sure Way to Higher Profits: why coaching salespeople pays dividends

Many offices struggle and so do their salespeople. In the nineties, salespeople wrote on average $135,000 in fees. Since 2010 we have seen litt...

Your Number One Leadership Asset

The number one asset for all leaders is their integrity, their character. Real estate agency profit consultant, Gary Pittard, says that integrity...

Competence Doesn't Just Happen

Let me introduce you to Joan Carter, who retired on 30 June 2018, ending a successful twenty-four year career in real estate sales. Before real...

Work Is A Verb

"Bye Darling, I'm off to work". Salespeople say this every day, but what exactly are they talking about? Real estate agency profit consultant, Ga...

Out of Control: What to do when salespeople wont do the actions

Leaders often complain that their salespeople won't do the right actions. It's one of the biggest complaints that leaders make. They fear putting pres...

Habits Reign Supreme

Whether a real estate agency leader, or a salesperson, good habits propel you toward success, while bad habits hold you back. Real estate agency ...

When the Market Turns

During the boom, I heard many salespeople talk up their results. Many of them are quiet now that the market has turned. Now I see many leaders and sal...

The Right People Make Life Better

One of the biggest waste of a salesperson's time is to spend it with the wrong people. This applies in business and in our personal lives. In thi...

Data Theft: Disease or Symptom?

You may have read about the h...

Keep Marketing

It's an easy option to blame the market when business is slow, but real estate agency profit consultant, Gary Pittard, asks, "How much marketing a...

What Is Your Value Chain?

Want to reach your profit potential? Contact us now.

Pittard


Suite 71, Level 4
330 Wattle Street

Ultimo NSW 2007
Australia


Mailing Address
PO Box 2045
Strawberry Hills NSW 2012


: (02) 8217 8500
Fax: (02) 9281 4198
AUS Free call: 1800 663 600
NZ Free call: 0800 448 065
International: +61 2 8217 8500

: info@pittard.com.au

Contact Us