Mar 28, 2019
How low can estate agents go?
How low can estate agents go?
Price wars are everywhere.
In the supermarket, on the internet, on market-stalls; wherever you look, you’ll find businesses competing on price.
And over the last few years especially, this way of thinking has crept into the world of estate agency.
With newcomers like Purple Bricks joining the market and offering fixed price solutions, price has come sharply into focus, and the result is agents trying to outdo each other on price.
But here’s the problem: competing on price is a surefire way to:
- Drive value out of the market
- Decrease your profitability
- Reach a point where you’re no longer able to operate
So, what do you do instead?
There’s no easy answer, but a startpoint is that adding value rather than slashing price is a far more effective (and financially sensible) way to stand out in your market.
Think back to the supermarket.
If a retailer wants to make a tin of beans stand out, they could slash the price, but in doing so, they’re diminishing their profit margin AND the perceived value of the tin of beans.
But, if they keep the price the same, and add some additional value in – like an additional product for half price – they’ve kept the integrity of their pricing and removed themselves from the price war.
It’s the same in our world. Being the cheapest estate agent attracts cheap customers, who are only interested in price – is that really the market you want to be serving?
What could you do to add value and make your proposition stand out in your market, rather than fighting the price war?
If you want to talk through some ideas, get in contact with us today.
If you need guidance or support with your estate agency design and messaging please contact our branding team or email dave@propertystream.co
