More about pricing

[oscillator]

Lots of great info in this thread. Larry and others point out several items that should be common sense, but most people overlook.

One overlooked item of common sense is in Gregg's original post. Gregg mentions a guy who is charging $150 for virtual tours and has more business than he can handle. Simple supply and demand says he should charge more - at least for new clients.

Gregg then mentions that a new guy shows up and starts charging $100. Either this guy is stupid or he didn't do his homework. If demand outstrips supply at $150, then why is he charging less?

But really, all these low ball guys out handing over disks with 100 photos on them only make our job easier and help us command a higher price. To pharaphrase Tony; they have a camera and a car, big deal.

If your client only cares about price, find a new client. This is not a customer you want. Sure, price is important, but someone who puts price above all else will be a pain to deal with, will suck you dry, and then drop you as soon as they find a new sucker.

Remember - there are 3 negotiables in any transaction:
1. What you want
2. When you want it
3. How much

Pick any 2. The market will decide the 3rd.

[Greg McNair]

Mark, I said the guy usually has more work than he can handle. But real estate sales are not off the charts here anymore. Southerners are quick to recognize greed, so if he starts charging more, customers will wise up and he'll lose in the end. There's the approach to charge what you think it's worth, and if they're willing to pay it, then so be it. And that works in a bustling market. But when biz is slow, and closings aren't happening as frequently, the realtors will seek out the $100 operators.

Like Craig said, it's bread and butter and keeps people from working odd part-time jobs to fill in the gaps.

I prefer to work the 1 or 2 jobs a week for bigger money so I can have more time to play in the forums. :)

[Cryofix]

Actually I would think in a downward market like real estate is in now that big time realators would do everything in their power to sell off a property, small mom and pops may not have the money for that right now, but there is significant value in not only the photo but the relationship between the seller and the realtor, especially when the realtor shows he/she have gone the extra mile to get it done.

[Cryofix]

LT Please go on!

[cainebean]

Cryofix, I've been told by most of my agents that my service will really start picking up when it slows down! And honestly, I can totally see how that would be the case! So, I'm doing my voodoo dance for a slow housing market!

LT, do go on! While I'm probably one of the young men you are talking about, I think I have your mindset. It is nice to have someone else come along and point out what you already know and feel is right. So please do keep typing.

[larrytoelle]

Howdy,

OK ... we're talking about the Broker/Photographer ... the guy who takes his own snapshots and won't seriously consider using a professional. The guy is reasonably successful, has a method of doing business that keeps him going, runs a tight ship and is entirely focused on his business and knows his business. Like I said ... you're not going to sell this guy anything that he hasn't seen or tried before ... afterall ... he's been around for a long time and is obviousy successful.

Our job then ... is to recognize him "before" we initially meet him. If the first thing out of our mouth is "Hi, I'm here to sell you my services," we've already lost the account before we start. This guy's antennae are up all of the time, and yup ... he's detected us. We're walking into his trap. If we're not careful, we're going to make a fool out of ourselves and loose him. Best wish him a nice day and just leave.

Know the market ... before getting into it. A good business man, which this guy is, will know everything there is to know about his market place ... not just the technical knowhow of marketing, selling, closing, financing, recording deeds, etc ... but the people and personalities in the market place. Remember, this guy has been around for a long time ... he knows every broker, associate, secretary and ad salesman ... by their first name ... and their kids names as well ... it's his job to know. It's also your job to know his marketplace as well ... perhaps not as intimately ... that's impossible ... but you'd better know it well enough to know who this guy is before you get into his face and try to sell him on expensive "toy helicopter pictures."

Business is conducted on respect. Here's a guy who will demand respect from you. Are you in a position to demand respect in return? ... probably not. Not yet, anyway.

All of these guys belong to countless Lion's Clubs, Rotory Clubs, Elks Clubs, CofC, etc. They're social animals, they have to be to succeed. As part of their membership, they're expected to give something back to their communities in the form of cash or time or both. It's the way communities work. As a businessman, you too will be expected to be a member of one or more of these clubs. All of the clubs work together on a project or two. Perhaps new bleachers at a ballpark, or whatever. It's only a few hours a week, useful time usually and it's where you meet the folks in your market. It's also where you demonstrate your product or service. Show the folks what you've got and what you can do with it. You may not initially impress the broker you're after, but chances are you'll impress someone who the broker respects, and you'll end up with that hardnosed SOB on your side and anxious to do business with you. Along the way, you'll pick up some odd jobs as well ... some odder than others.

I'm on my way to a meeting myself and will have to cut this short ... but hope you guys get the idea. Personally, I'm after another type of business and that SOB wants a moment with me this morning.

Later,

LT