Ways to Demonstrate Professional Value
A real estate pro should be able to convey the vital rules that correspond to professional value for any prospect or client. Follow these steps to show prospective clients that you would be a valuable asset for them.
1. Know What Business You Are In
We are in a service business. The purpose of a service business is to provide service to get compensation. We won't be in the business long-term without the ability to charge enough profit to cover our business expenses, personal living expenses, recreational expenses, retirement, taxes, children's college funds, and investment. The fact that we provide a service and receive compensation is important. A good service business goes beyond the sale. Real estate pros should check in after the transaction. They might even survey their clients to see how they did and how to improve their service.
2. We Don't Sell Properties
Just as lawyers, dentists, doctors, or accountants sell their time, so do we. Because our fees are in a general range, the real variable to profitability is the amount of time required to earn our fees. If we can accomplish our clients' goal to their satisfaction in less time, we can increase our revenue and net profit.
We are salespeople, but we are really selling something other than property. What we really sell is our knowledge. We must convince consumers that our knowledge is better and more complete than our competitors, which enables us to charge a higher fee for our service.
3. Sell Yourself First
Sell your services, benefits, and value first. The first step is believing in your value. If you do believe it, it's much easier to communicate your value compared to other practitioners in the marketplace. The more you can quantify what knowledge, skill, or production level they need to acquire or achieve, the easier it will be to attain. You have to know the target before you have any chance of hitting it.
4. Survey the Competition
With new competitors entering and advancing daily, we need to be ready for competition. The key is to identify who your main competitors are and understand how the services you provide clients are distinct from their offers.
Here are a few things to considerations to get started:
Who are key competitors?
Who has more market share than you?
Who has more name recognition than you?
Who has similar market share to you?
Who has equal or better results?
This evaluation should be made based on company and individual statistics and analysis.
5. Overcome the Competition
Real estate pros have figured out that they can beat the competition by:
Demonstrating the benefits clients can only receive from them.
Showing the value they bring to the market.
Being specific and deliberate in terms of what they offer.
We can compete on value and service and avoid price reduction. By clearly knowing our competitive points of difference and effectively communicating those differences, we're able to draw a stronger separation from the competition. Through the use of personal commitments and guarantees, we also can create a higher level of comfort for them, reduce their risk, and separate ourselves from the crowd of competitors.
The most successful real estate pros follow these steps to tell, without question, that they're a different type of practitioner—one that can uniquely benefit consumers.