“Will you cut your commission?” Moments with Mark.
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Good Morning,
Everyday we struggle with sales challenges from our clients. It is not the sales challenges we face daily, but how we handle them that can either accelerate our sales or put the breaks on our sales altogether. After just one short seminar with Mark Rodgers, I knew he would be able to "Accelerate" my business to a whole new level. Furthermore, he agreed to allow me share some of his coaching with all of you! Today I have the pleasure of bringing to you the first installment of "Moments with Mark";
“Will you cut your commission?”
How should you respond when the seller asks you, the Realtor, “Will you cut your commission?”
I’m tempted here to reply simply, “No.”
There are really only three price positions: low price leader, market match, or premium pricing. This is first and foremost the primary decision you have to make when deciding how you and your practice, “goes to market.”
I’ll skip elaborating about the pros and cons of each, as you’re more than likely well aware of them.
If you’re of the low price mindset you simply reply “yes” and try and dispense with the client and the property as quickly as possible because you have to “make it up on volume” (my position is that this is a self defeating position for most professional service firms).
If you’re a “market match” practice, my advice would be: “quid pro quo.”
Meaning consider reducing your fee, but get something in return.
Here, you might consider responding in this fashion: “Yes. We’ll significantly reduce our commission, if you’ll dramatically reduce your selling price. I won’t make as much, you won’t make as much, but your property will more than likely sell faster. Fair enough?”
This will more than likely get a moment of stunned silence, which tells you, you’re now in control of the conversation. You may get a “yes” and if so, move forward negotiating specifics.
If you get a “no,” consider walking away from the business. I often tell people this is a person’s business which you can’t afford. And here I mean mentally. They will often be problematic about the slightest detail. They don’t want to create a partnership with you (which after all, isn’t that you’re objective?), they want you to carry the burden.
If you are a premium price Realtor (a great sandbox to play in), when you’re client says something like, “Will you reduce your fee?”
Simply say, “No.” Then hold fast, avoid the temptation to rush into the “void.”
They may simply move on, because they know your “brand” and expect to pay top dollar for top service.
If they respond with, “Well we are trying to get the best deal possible,” this is where you can use your language skills, and respond with,
“And that’s exactly why people choose to do business with us.”
Again, here you’ll probably get a moment of stunned silence, pause a beat and then communicate your inimitable market-place superiority (If you’re thinking right now, that sounds great … what is that? Read on!)
“There are really three reasons people choose to do business with Rodgers Realty.
1) We are an award winning realty practice. We sell more homes – faster, in this market than any other firm.
2) We have the expertise to help you stage your home such that it will be appealing to the broadest possible prospect base
3) Our clients chose us because they trust us. This is one of the biggest financial moves you’ll make in your life, you need a partner you can trust, and we’d be more than happy to provide you with referrals, or simply ask around. Our reputation speaks for itself.”
Then transition to the next phase of your sales progression, you might try something like:
“In our firm we practice the ‘good deal’ mentality. You have to feel well taken care of, and we have to feel well compensated, that’s a ‘good deal.’ If either of those two things are out of balance it doesn’t work. Here’s what I’d like to recommend, let’s spend some time and work on maximizing your return and ours. Then if in a few months we’re not getting the results we need, we can revisit this topic. For now, we have work to do. Let’s review the list of home improvements you’ve made …”
In the above example we used the ART of communication;
1. We acknowledged the issue, in a unique and likely unanticipated way.
2. Then responded, in a conversational, yet compelling manner.
3. And then “assumed the sale” and transitioned to the next part of your sales progression.
Your examples of inimitable market-place superiority will no doubt be different but you get the point. You have to be able to educate your clients on why people choose to do business with you.
If you’re still sorting out some of your differentiators, here are some filters to help:
- Are you award winning?
- Do you educate your clients?
- Can you provide insight that others don’t?
- Are you organized such that you can save them time, energy, and effort?
- Do you leave them feeling upbeat and positive (there are enough Debbie Downers out there)?
All of these add value to you and your practice. The key question you have to be able to answer is “Why would someone want to do business with me?”
A question you have to first answer for yourself.
Until next time,
Mark Rodgers
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Laura S. Baker
Ready? Set,...Sell!
Home Staging & ReDesign,
(920) 728-4118
rss.home.staging@gmail.com
www.rss-home-staging.comReady? Set,...Sell! Home Staging & ReDesign is a fully insured Home Staging and Redesign company since 2007. We have an A+ rating with the BBB of WI. We are members of The Real Estate Staging Association. Our mission is to help Sellers, Investors, Lenders, Builders and Realtors® market the best product possible, therefor; turning properties over faster saving time, equity, carrying costs & marketing costs. Our goal is to get you the best offers possible by showing well in the MLS & memorable to buyers. Home Staging saves time and equity!
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