Compete Without Discounting Your Commission.
When vendors compare agents, commission often becomes part of the discussion.
When vendors compare agents, commission often becomes part of the discussion.
The easiest response is to cut the fee.
That can also weaken the value of the service before the campaign has even started.
A better approach is to show what the vendor receives for the commission.
Make the difference clear.
Do not compete only on price.
Explain:
Your sales strategy
Your buyer database
Your marketing approach
Your follow-up process
Your negotiation
Your communication
Your local market knowledge
The vendor should be able to see what they are paying for.
Separate commission from marketing.
Keep the two discussions clear.
The commission pays for the agency’s sales service.
The marketing budget pays for the campaign used to promote the property.
Do not reduce commission simply because the vendor is also paying for marketing.
Add value before reducing price.
Before changing your fee, look at what else you can offer.
This may include:
Better campaign planning
Stronger buyer follow-up
More detailed reporting
Clearer vendor communication
Flexible marketing payment choices
Better property preparation advice
Property.Credit can also add flexibility for vendors who do not want to pay the full marketing cost upfront.
That can help remove one cost concern without changing your commission.
Vendor Conversation Script.
Vendor:
“The other agent is charging less commission.”
Agent:
“I understand. I would compare the full service, not just the percentage.”
Vendor:
“What am I getting for the difference?”
Agent:
“My fee covers the sales strategy, buyer follow-up, inspections, negotiation, communication and management of the campaign. I am happy to show you exactly how I would handle each part.”
Vendor:
“The total selling cost is still important to me.”
Agent:
“Absolutely. We can also look at the marketing budget separately and give you clear payment options, including Property.Credit for eligible vendors if you prefer not to pay the full marketing cost upfront.”
Do not criticise cheaper agents.
Avoid saying:
“You get what you pay for”
“They must be desperate”
“They cannot be very good”
Stay focused on your own service.
Show the vendor where the value sits.
A small difference in commission can become less important if the vendor understands the work behind the sale.
Show them:
How buyers will be managed
How offers will be handled
How often they will hear from you
How the campaign will be reviewed
How you will negotiate
That gives the vendor something useful to compare.
Agent Action Plan.
1. Know your value
Be able to explain your service clearly.
2. Separate commission and marketing
Do not let the two become one cost discussion.
3. Add service before discounting
Look for ways to increase value.
4. Use payment flexibility where relevant
Include Property.Credit if upfront marketing cost is part of the concern.
5. Stay focused on your own offer
Do not attack the competitor.
Competing well is not about being the cheapest.
It is about making the service easy to understand and worth paying for.