Why did Boeing decide to move its second Dreamliner Plant to S. Carolina…the same reason Sellers and Buyers hire Discount/Flat Fee/Rebate agent/Brokers...to try and save a buck. But, at what cost?

By
Real Estate Agent with Seattle Realty Group

When it was all said and done, it did not matter what the Machinist Union would or would not agree to, Boeing had all but decided on taking its second Dreamliner plant South!

I have no qualms with either Boeing or the Union but this was a simple decision and it all came down to money. More to the point, paying $14.00 an hour for a production line worker in South Carolina vs. what an average Machinist earns in Puget Sound, around $28.00 an hour.

For us in the real estate industry, this has become an all too familiar theme with the birth of the Discount/Flat fee/Rebate Brokerages. This model of offering less for less was easy to justify during a market where 8 out of 10 homes listed for sale actually sold...makes you wonder what was wrong with those other 2 houses that didn't sell. (Perhaps a topic for another blog)

As an Instructor teaching agents how to convey their value to their clients, it's fairly simple to see the difference in those agents who are willing to work hard to obtain the tools as well as the skill and expertise to command their fees. Sadly for others, the only value they have is to de-value their value and offer less for less.  

But we aren't talking about selling houses...we are talking about building Airplanes!

Now, before I get an earful about the difference in the cost of living between the 2 regions, let's really look at the facts. Those who can command their fees based on their skill level can only do so if there's someone willing to pay for those services. In real estate, if the Discount/Flat Fee/Rebate broker does not have the tools, skills and expertise, then they must charge less for less. And, even though there may be a difference in the cost of living between Seattle and Charleston, I'd be willing to bet the top agents and Brokers, be it Seattle or Charleston, still charge the same for the tools, skill and expertise they've worked so hard to possess.

The reality is if a seller or a buyer elects to hire a Discount/Flat Fee/Rebate broker over a Skilled expert based on their fee and that Discount/Flat Fee/Rebate agent/Broker makes a mistake...well, you got what you paid for! If you fly on a plane that was built by a worker getting paid less for less and that worker makes a mistake...well, you crash!

So, anyone up for a flight in an Airplane built by someone who gets paid less for less...

Blog Posted by Patrick Flynn, Seattle, WA Real Estate Broker

24-hour Direct 206-228-1900

Comments (1)

John Rakoci
Eagle Realty - North Myrtle Beach, SC
North Myrtle Beach Coastal Carolinas

You are correct- the cost of living is much lower here. The weather is a lot better here. By the way-- there is a minor difference in location but good size difference in all costs between Charleston and North Charleston. The Port of Charleston is in a great location. Union wages are less but are not 1/2 for skilled labor. If the high paid want a job vs no job they may well come here and in short order find they are happy to get away from the mess the USED to live in. SC is gaining population annually. If this would have happened in a few years the new port in SE NC would be finished and there is a good chance they would be there instead of SC. The former industrial areas are losing to both domestic and off shore locations. They will whine forever, but high taxes, high wages, high utilities, unpleasant weather, and many more reasons jobs will continue to leave. Besides- it is a great place to retire. After 2013 when obama-care, higher taxes, and 'cap & trade' kick in there will be no jobs left as no company that has the ability to move off shore will remain in the US.

Oct 29, 2009 12:01 PM