I Don't Wanna Pay That Much!
by Walter Sanford
by Walter Sanford
(edited)
(...)
"Well," you say, "why am I any different? Everyone has sales" The profit margin in real estate can be brutal. Many agents have 60% or more in overhead, when you take into consideration your broker, income taxes, and other overhead. This simple little reduction now translates into a 42% reduction of net profit, based on the fact that approximately 40 cents of every dollar goes to your bank account. This is a business practice that is guaranteed to keep you from innovation, success, and retirement.
If you're worth it, this is how to say "no thanks" to commissionectomy, in a warm fuzzy way.
(…)
1. ?Mr. Johnson, please allow me to restate some of the extras and differences that my marketing plan and service delivers????
(…)
3. ?Mr. Johnson, I understand that is your bottom line, but I need my full fee to offer my services. Let us both ask the buyer to pay for it in a higher price. However, after marketing the home, we may have to reduce the price after 30 days. If the market will not realize our higher price, I would like your "okay" now for a price reduction that is more in keeping with the comparable sales.?
(…)
5. "Mr. Johnson, what business are you in? How do you respond to requests for lower prices, fees, etc?"
6. "Yes Mr. Johnson, I understand that Brand X will do it for less; however, when you buy something, you look at all the features for comparison, right?" Then let's look at a comparison chart of:
A. Number of signs up (more signs equals more buyer calls).
B. Sold properties in last twelve months (proof of excellent marketing).
C. Number of agents in company (all your sales people!).
D. Systems and strategies (show them your checklists that guarantee consistency in service).
E. Education and experience (you want the best CPA for your audit, right?).
F. Marketing powers (let's check some internet sites!).
G. Years in the business.
H. Testimonial letters.
I. Proven lead generation systems.
J. Number of buyer contracts in force.
K. Resumes of all team members.
L. Technological proficiency.
M. Internet search engine superiority.
N. One hour return phone call guarantee.
O. (Where does the competition eat your dust?)
(…)
8. ?Mr. Johnson, I have offered discounts to volume clients. What other business can you offer our team??
(…)
10. ?Mr. Johnson, is this a test to see how I will negotiate for the best price on your home??
"Well," you say, "why am I any different? Everyone has sales" The profit margin in real estate can be brutal. Many agents have 60% or more in overhead, when you take into consideration your broker, income taxes, and other overhead. This simple little reduction now translates into a 42% reduction of net profit, based on the fact that approximately 40 cents of every dollar goes to your bank account. This is a business practice that is guaranteed to keep you from innovation, success, and retirement.
If you're worth it, this is how to say "no thanks" to commissionectomy, in a warm fuzzy way.
(…)
1. ?Mr. Johnson, please allow me to restate some of the extras and differences that my marketing plan and service delivers????
(…)
3. ?Mr. Johnson, I understand that is your bottom line, but I need my full fee to offer my services. Let us both ask the buyer to pay for it in a higher price. However, after marketing the home, we may have to reduce the price after 30 days. If the market will not realize our higher price, I would like your "okay" now for a price reduction that is more in keeping with the comparable sales.?
(…)
5. "Mr. Johnson, what business are you in? How do you respond to requests for lower prices, fees, etc?"
6. "Yes Mr. Johnson, I understand that Brand X will do it for less; however, when you buy something, you look at all the features for comparison, right?" Then let's look at a comparison chart of:
A. Number of signs up (more signs equals more buyer calls).
B. Sold properties in last twelve months (proof of excellent marketing).
C. Number of agents in company (all your sales people!).
D. Systems and strategies (show them your checklists that guarantee consistency in service).
E. Education and experience (you want the best CPA for your audit, right?).
F. Marketing powers (let's check some internet sites!).
G. Years in the business.
H. Testimonial letters.
I. Proven lead generation systems.
J. Number of buyer contracts in force.
K. Resumes of all team members.
L. Technological proficiency.
M. Internet search engine superiority.
N. One hour return phone call guarantee.
O. (Where does the competition eat your dust?)
(…)
8. ?Mr. Johnson, I have offered discounts to volume clients. What other business can you offer our team??
(…)
10. ?Mr. Johnson, is this a test to see how I will negotiate for the best price on your home??
No comments:
Post a Comment