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DON'T SLAM THE COMPETITION

I just commented on an AR blog that compared business models by slamming their "discount" competitor. This is a major problem in our business. First, it may be a viloation of the Anti Trust laws regarding group boycotts. Second, it is a violation of our code of ethics. We are not to make false statements about our competition. If you have never worked for a particular company how do you KNOW what it is they do and don't do? I made the point to the author of that blog that Nordstroms does not slam Walmart in their ads they simply expand on their superior customer service and quality of merchandise. Also, a Mercedes is a car and so is a KIA they both get you to the store. the ride is just a bit different. On the other hand you don't see the reverse in their ads either. Hybrid makers do not take out ads saying the HUMMERS will make you go broke at the gas pump they simply state the obvious advantages to their product.

Poor quality customer service can be found in every business model. I know many "full-service" firms that have agents that do not do a very good job. The also put up a sign, throw the propety in MLS, make a flyer, and are never seen or heard from again. I do not make a point of slamming them either. Instead I simply inform my clients of what I do, not what my competition does not do to help sell their home.

The Department of Justice is the number one threat to our business right now. Please do not help them build a case against our profession by practicing this way. It's bad for our industry and it's bad for your business too!

Posted by C J Johnson Kern & Ventura County Real Estate on 11/08/2007 09:01 AM

Comments (23)

doj, ethics, customer service

23 Comments on DON'T SLAM THE COMPETITION

NOV

2007

Amen

CJ I applaud you very insightful, and I totally agree.

Nice post CJ. Would you mind posting a link to that blog?

I'd like to add that the other day I heard a Realtor prospect of mine, espouse the benefits of pitting lender against lender for the "cheapest deal" and then slam the "moronic ideology" of ANYONE who would use a discount RE firm, literally in the same sentence.

I hope she never has to watch a "RealtyTree" commercial. It might put her over the edge..

Terrific Blog! We need to learn to respect each other and help sell and price each others properties! This business is very cuthroat and doesn't have to be that way.

This is a "Red Flaggable" kind of Post......everyone of us should keep this in mind, and look at what we may or may not be saying. thank you CJ.

C J, I love you. Let me know we you are in our area again or teaching a class. Thanks.

TOM: Here is the link.http://activerain.com/blogsview/266298/Dispelling-Flat-Fee-Brokers

Tom,Scott, Scott, Kathy, Jeanne & Mana: Thanks for your comments. I know you would never do this!

CJ, I think that discount, full-service, multi-service companies are going to be the "winning" business model. Too many agents feel threatened by this reality. They need to be responsive to changes in the market or they simply won't survive. And this will happen long before the DOJ gets around to them. They'll already be gone.

Bill Roberts

OK... Hang on... I admit that I did slam a guy the other day.. I made the determination that he was one of the guys giving "us" on the mortgage side a bad name.. I called him out on it... He didn't appreciate my comments... Basically, he was "pitching" real estate in his area like a carnival barker as the "wisest investment you could ever make in your life". following up with a "no matter what your credit" schtick...I swear 9if he had said "three throws for a dollar" it would have fit right in. My problems with his post were many (why is he an expert on real estate values when he's a mortgage broker, to start)..

My feeling is that this was a different situation than the one you described, but I'm pretty new here on AR, so I'd appreciate a ruling here.. Is there a point at which you speak up, or do you bite your lip and move on?

By the way, when I pressed him on why now was the time to buy, his answer was "because Donald Trump says so".. (except that he grossly misquoted what Trump actually said....)

Slamming the competition does not make you look good to your clients either.

BILL: Real estate pro's are a bit resistant to change of any kind only time will tell what model the public will want. There are actually people that hire people to do their Christmas shopping even thought they can go on line and do it in a few minutes, not wrap a thing, and have it delivered at the stroke of a key. I think that there is room for all models it is just a matter of what the client wants not what we want to deliver.

TOM: You missed my point. It is not our place to tell others how to run their business. I dont' want to be preachy but how about Judge Not Less You Be Judged. He might have a style that you don't like but his message works for me. What's wrong with telling the public that real estate is the wisest investment you will ever make in your lifetime?

RANDY: BINGO!

"What's wrong with telling the public that real estate is the wisest investment you will ever make in your lifetime?"

Personally, I'd say that depends on several factors, beginning with, which real estate, how you're presenting it and who you're trying to sell it to. Safe to say there are quite a few people either in foreclosure or on the brink of it who aren't feeling the wisdom of their investment right now.

But, I see your point and respect your opinion. :-)

TOM: Real Estate investment is just that an investment. Not a get rich quick scam. Anyone that has invested in RE and held it for any 10 year period is doing just fine. Most of the people that buy at the top of every market are not going to see a profit in 3 to 5 years. All then need to do is wait. If they can not make their payment then they can always rent it out and live somewhere where the monthly nut is lower. What ever happened to personal responsibility. Another found saying of my dear departed IRISH mother "YOU MADE YOUR BED NOW LAY IN IT". My husband is working a second job to make up the difference in our interest only just adjusted $400 per month payment reset. Why can't others do the same? I appreciate your feelings and welcome your comments.

"Another found saying of my dear departed IRISH mother "YOU MADE YOUR BED NOW LAY IN IT"."

I'm from Texas. My Dad used to put it this way. "You bought a horse when you needed a shovel".

You know.. A blind man can pull a trigger, it's just very unlikely that he's hit what he's shooting at. It's just so predictable that the guy hollering "SHOOT!!!" is always standing behind him....

Boy, the homespun coloquialisms are flyin' today, eh?

Now I know why I like Tom he's from TEXAS. I live in Tehachapi CA which is like TEXAS on light beer.

Tehachapi huh? Nice town? I've been on the other side of the hill from you. Last year I took a road trip down from Reno across the desert on the NV 375 "Extraterrestrial Highway". Just HAD to stop at Rachel and go up to Area 51's back gate in the middle of the night.. Just HAD to get a picture of me jumping across "the line" and blowing raspberries at "tha man".... It was almost the end of me...

Hey CJ, Remember that guy I was telling you about? The wisest investment ever in your lifetime guy?? I'll give you three guesses where he was pitching..

http://money.cnn.com/2007/11/06/real_estate/home_prices.fortune/index.htm

NOV

2007

CJ, I came back for your reply to my comment when I discovered your conversation with Tom. Now I need to go to Tom's blog and educate him on why Trump is right.

Bill Roberts

BTW I agreed with you on her post but she never answered my comment. She did "rationalize her behavior in response to another commenter. Too bad and too sad.

Tom, I went to your blog to talk to you about why now is a perfect time to invest in real estate. I feel you really need some education.

But you know what happened, There isn't any blog there. I guess I'll have to ppost on this subject and you can read it on my blog.

Bill Roberts

BILL: I did respond to your comment on 11/8 and I want you to look back at my reply to Tom too. My original point is that it does not matter who has the "winning" model it matters how you treat your competition. I personally will not vote for any candidate that resorts to mud slinging to get elected. If they paint a clear picture of who they are and what they stand for they get my vote otherwise I simply kick them back in the gutter where they belong.

CJ, I meant I commented on the post you were referring to here. I know you replied to me. Thank you.

And I agree with you that bad-mouthing the competition only reflects badly on yourself.

Bill Roberts

CJ, Forgive me for what I'm about to do. I'm not a hijacker. Hope you don't delete me

BILL:

" Now I need to go to Tom's blog and educate him on why Trump is right."

I'm not arguing with Trump. I agree with what Trump actually said. Which was "aside from isolated pockets, like Manahattan, things are going to get much worse before they get better" What I did not agree with was what the way this guy was misquoting Trump. (A bandwagon that you're apparently happy to jump onto)

"Tom, I went to your blog" It's currently in draft

"to talk to you about why now is a perfect time to invest in real estate."

http://money.cnn.com/magazines/fortune/price_rent_ratios/

Other's may disagree, if that's ok...

Again.. My issue was one of timing and that the phrase "invest in real estate" is a broad stroke of the brush.. While there may be some isolated pockets of opportunity now, there are many areas that should be avoided like the plague, as they are expected to drop another 25-35 percent over the next 18 months. I think risk should be calculated based on economic and market analysis, not to mention tolerance for potential loss of capital or revenue. That was my point. Perhaps you missed that part?

"I feel you really need some education." .

I don't even know where to start on this one.. Do you use that line at home? When your wife disagrees with you, do you respond by saying "I feel you really need some education."? If so, how does that fly with her?

Better than it does with me I hope, or you're going to need to factor in the financial ramifications of divorce to your own "Baby Boomer Retirement Planning"...

I bet you sell a lot of Variable Universal....

Sorry CJ..

P.S. BILL I went to look at your webste and guess what?? Dead link.. No website.. Also saw the testimonial from AF.. Smells like a cashout refi with an option arm. How's he feeling about things now? Still happy? Or a little nervous?

NOV

2007

CJ, forgive me, but I need to respond to Tom and he still has no blog.

My re-fi for Mr. A.F. was a rate and term fixed at 5 and 5 eighths. He is still very happy.

Real estate is a long term investment (10 year or more) not something to be "flipped." The bottom of a market is very difficult to detect on the way down, After the fact you can say "I shoud have bought then" but you won't know until later. On the other hand the psychology of sellers is much easier to deal with before the bottom is reached. A good deal can be negotiated at this time, and in 10 years you will be glad you did it.

If you want to continue this discussion come to my blog. You will have many posts to choose from.

Bill Roberts

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