As a real estate instructor at Columbus State, I want to share this 3 part discussion with real estate agents to help them in their career.
The first thing to understand about the 4 P's of marketing (Product, Price, Place, Promotion) is that the Product is YOU! You don't own the homes you sell, you don't own the buyers, so the Product is you. The other P's need to support the product, and you need to design yourself to have something different to offer, whatever that difference is, or you will be just like everyone else.
Today let's talk Price. Price is not what the houses cost, but what you cost! You have a choice when it comes to what price (commission) to charge. You can go to a discount brokerage and charge less, go to a upscale brokerage and charge more, go to a 100% company and charge what you want, or go to a mega-firm where you have no say and make some other P your focus.Whatever you choose, you need a price strategy.
So maybe your difference is that you charge less than the others, and that become your point of difference. Or maybe you provide a higher level of service and charge more? Somehow Price has to be a part of your Product mix, even if you charge the same as everyone else. If that is the case, then another P has to be your point of difference.
Having all 4 P's aligned to support the success of an agent is crucial to your long term success. Have them mis-aligned would be like going to " Yen Ching Oriental Restaurant" and finding they only serve Italian food! Next week we will talk " Place" .