In this property market, your pitch for new business is likely to be up against other agents in the local area. This says that every sales pitch and listing pitch should be well crafted and well designed. As the local commercial real estate agent, you will normally have two or three agents competing against you with the same property and with the same owner or landlord.
In such a competitive market you have two choices available in making the pitch for the listing:
- You can offer discounts in your services to attract the interest of the property owner. The discounts would normally be in your commission or marketing costs.
- You can offer special points of difference which you believe are unique to your marketing and promotion strategy, and that can achieve a positive result for the property owner as soon as possible.
In pitching for the property listing, the reality of the situation is that the owner of the property really wants to resolve their property pain as quickly as possible at the best possible rent or price. Discounts will not normally do this. In fact they can be counterproductive. Think about it; why would you discount marketing of the property if it is going to limit the exposure to the target audience?
Some agents will discount the commission they will charge within small margins, and that may be satisfactory in your business model. Significant commission discounts should however not normally be given as they will provide real limitation on the time that you can devote to the campaign and the promotion of the property. Invariably you see the agents that discount commissions not staying in the business for very long.
Now some property owners certainly do push you on the commission survey can get some reduction or discount. In their opinion the commission will not impact the marketing of the property. The choice you make here on this matter is up to you but it is recommended that only small commission discounts are given. To do business as a real estate agent today, operational costs and support staff expenses prohibit major commission discounting.
The best way to pitch your services to a property owner can incorporate strategies similar to these:
- Show the property owner that you really understand the target audience to tap into in selling or leasing the property.
- Provide examples of the best available marketing method and price or rental range that will suit the target audience.
- Give the client three alternatives of marketing that provides some discount but still taps into the target audience most effectively. Invariably you will find that the client will choose the middle level marketing campaign.
- Show the client how your office database of prospects will suit the marketing of a property, and how you will then implement the database marketing campaign.
- Show the client just how many potential prospects exist in your database now, that can inspect prior to any advertised marketing campaign commencing.
- Use third party evidence when it comes to property prices and marketing strategies. This will make your sales pitch a lot easier.
- The client will usually choose the agent with the most significant market awareness and product knowledge. Your sales pitch should incorporate these details and facts.
The agents that win the listings and business in today’s market are usually confident and connecting. They have the ability to show the client how they can shorten the property pain and improve the price or rental in the process. Design your sales pitch around these facts and then start to practice.
A sales pitch is not about discounts; it is about solving a problem. That should be your focus.