Does price equal value? Price discounting and perceived value…

Do you expect your agent to stand by their product or service and have confidence in the results that they provide to you? If the agent provides exceptional value & shows outstanding results does discounting then cheapen them, would you still ask for a discount?

Does discounting possibly change your perceived service standards?

Let’s look at two brands – Brand A and brand B:

Brand A – readily offers discounts, the service is poor due to less staff and lower wages, the product quality is poor due to manufacturing costs, packaging and materials used. We can all relate this experience at some point I’m sure. I remember going to the cheap fashion outlets to get cheaper prices on clothes so I could wear the current trends only to have them last maybe a wash or two and then fall apart, discolour or go out of shape. The service when purchasing the product was careless, sometimes rude or very process driven and the change rooms always looked like a cyclone had hit them. I bet you’re nodding right now, I know you’re with me.

Brand B – charges a higher price, the quality of the product exceptional, you can instantly tell its value. The fabric, the way it sits on you, the feel, the look. The service is of a high standard, they greet you as you walk into the store, you feel like the only one in there, the store looks modern, all the clothing is presented perfectly and the change rooms make you feel like royalty.

In terms of Property Management, often the cheaper brand will have more properties to staff member ratio, less training and resources available to them than the more expensive brand and therefore your property will receive a poorer service with the cheaper brand.

So, as you can see the above examples really do paint a much clearer picture of value. Maybe it’s time to ask yourself, why would you go with an agent that readily discounts their fees? Are you looking for cheap, low-quality service? Are you aware that this could cost you far more than the savings of the fees? You could suffer the consequences of a lower rental price and poor performing investment properties with ongoing drama’s and, incompetent, untrained agents?

When an agent is selling their services to you on price not on the results and outcomes that they provide to you, what are they really offering to you outside of this to ensure you receive the highest returns? Remove price and show outcomes and results then the price is no longer the issue.

It makes sense to me that if you want a top result that will far exceed the price you will pay to your agent, then price should not be a concern. Your research on your next agent should be on the outcomes and results that the agent will provide to you with a proven track record to back it up.

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