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

Reviews: Your Name in Lights

Here in the digital world of the 21st century, let's give some thought to happy client reviews and, in particular, how we use them. Some salesp...

Know Your People, Encourage Your People

In his final ill-fated expedition in Africa, explorer Henry Stanley paid the ultimate price for straying from his usual practice - he didn't choose ...

Two Types of Salesperson

A change in the market has exposed many of those who looked like winners during the boom. Back then, it was easy to look like a hero - if you co...

A Deeper Understanding

In this short sales session, real estate agency profit consultant, Gary Pittard, discusses one major difference between the order taker and the prof...

Create A Success Environment

Real estate agency profit consultant, Gary Pittard, says, "Real estate agency owners have the options to build their companies into success environm...

Are You Sure It's the Market?

A lot of leaders and salespeople are complaining about the 'tough market'. But is the market really the whole problem? The advice I've been giving ...

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...

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