Show the Difference Between Price and Value.
Vendors will naturally compare costs. Commission, marketing and other selling expenses are easy to put side by side. Value is harder to compare.
Vendors will naturally compare costs.
Commission, marketing and other selling expenses are easy to put side by side.
Value is harder to compare.
The agent needs to explain what the vendor receives for the money they are spending.
Price is the number.
Price is easy to see.
For example:
Commission percentage
Marketing budget
Photography cost
Portal advertising
Styling cost
Two agents may quote different prices.
That does not mean they are offering the same service.
Value is what the vendor receives.
Value may include:
A stronger sales strategy
Better buyer management
An active CRM database
Better property presentation
Stronger negotiation
Regular communication
A well-planned marketing campaign
Clear reporting and follow-up
More payment flexibility
These points should be explained during the listing presentation.
Compare what is included.
If a vendor is comparing two proposals, help them compare properly.
Compare | Look beyond |
|---|---|
Commission | The percentage alone |
Marketing | The total dollar amount |
Portal advertising | Simply being listed online |
Database | Number of contacts |
Agent service | Promises made at the appraisal |
Ask what each agent will actually do.
Avoid claiming the cheapest option is poor value.
A lower price may still represent good value.
Do not attack the competitor.
Instead say:
“I would compare exactly what each proposal includes and how each agent plans to manage the sale.”
Then explain your own service.
Show the value in the marketing campaign.
The same applies to VPA.
A $3,000 campaign and a $5,000 campaign should not be compared on price alone.
Look at:
What is included
Who it will reach
Portal positioning
Photography
Database activity
Social advertising
Video or additional presentation
Whether any items are unnecessary
The more expensive campaign is not automatically better.
The cheaper campaign is not automatically better.
Vendor Conversation Script.
Vendor:
“The other agent is cheaper.”
Agent:
“They may be. I would look at exactly what you are getting for each proposal.”
Vendor:
“What should I compare?”
Agent:
“Look at the marketing, buyer database, follow-up, communication, negotiation and the way the campaign will be managed. Then compare the cost.”
Vendor:
“I still need to watch what I spend.”
Agent:
“Of course. My aim is not to give you the most expensive option. It is to recommend the service and campaign I believe your property needs.”
Payment flexibility can also add value.
Service can include giving the vendor more ways to manage the marketing cost.
Depending on the agency, this may include:
Paying upfront
Other approved payment methods
Property.Credit pay-later for eligible vendors
This does not reduce the cost.
It gives the vendor more choice around when they pay it.
Agent Action Plan.
1. Know what you offer
Be able to explain your service without relying on general claims.
2. Break the service down
Show what happens before, during and after launch.
3. Compare like with like
Help the vendor compare what each proposal actually includes.
4. Explain the marketing value
Show what each major campaign item is there to do.
5. Include payment choices
Use Property.Credit where suitable.
Do not try to convince the vendor that price does not matter.
Show them enough detail to decide whether the service represents value for the price being charged.