Inspiration

Don’t Give Clients What They Want !

Allow clients to walk all over you at your peril!

(Article for Estate Agency News)

If we are to secure higher fee percentages in the face of the competition, we need to ensure that we understand the difference between what clients think they want, and what they actually want.

I have recently been touring the UK with my “Raising Fees Instantly” series of seminars, and it is tremendously gratifying to receive so many emails from agents who have applied the techniques and are seeing instant results, with fee percentages doubling in several instances (just as well really, as the seminar title makes a bold claim!)

The last half of the seminar considered over 50 phrases that can be used to combat a fee challenge in every conceivable situation. However, it was the first half that I was particularly keen that delegates should accept, in order to establish a foundation upon which the phrases would sit.

Whilst there are numerous ways of securing much higher fee levels than the pathetic rates charged by most agents, it would be irresponsible to suggest that these should be employed without a correspondingly justifiable increase in the level of service provided. A level of service that would leave such an impression on your customers that they would be more than happy to pay higher fees without question, and also go out of their way to recommend you to other sellers. Whilst I am passionate about raising fee levels, I am equally passionate about innovation and excellence in customer service.

Most agents are generally happy with the status quo, and they aim to give their clients what they expect. Yet I think this is simply not good enough! A satisfied client is no longer good enough! “Satisfied” is a tame word that means “no complaints” or “got what I expected”. If your measure of how happy your customers are is “no complaints” then you probably have a lot of work to do if you are to engineer your reputation so that you become really distinctive among your competitors.

So I don’t want satisfied clients….I want delighted ones! A delighted client is one who not only chooses you in the first place because you are clearly their agent of choice, but one who is continually impressed by the way you conduct your business. As I mentioned in last month’s article, this often comes down to using Critical Non-Essentials, or CNEs.

One of the fundamental problems that prevents agents securing instructions, or apparently having to accept an instruction at a reduced fee (unthinkable surely?!) is that agents fail to recognise what the client actually needs from you. In fact, most clients themselves don’t even know what they want. They think they simply want your valuation and your fee at the listing stage and then they will decide whom to appoint on that information. No wonder valuation and commission are the hot potatoes they have become – fuelled by weak agents who use these cheap “techniques” as the easiest way to secure an (unprofitable) instruction.

OK, I realise that in the market we have been enjoying one can be bullish on value; and there is nothing wrong with that, as long as the property remains saleable.

But we need to identify what actually motivates a seller to instruct you out of choice, not just because of your high valuation or low fee, because in my view these, perhaps surprisingly, are not their actual motivators.

We first need to understand what the seller’s objectives are, in order of importance. For a start, their objectives are NOT to get the highest price, NOR to secure the lowest agency commission. These are blatant misconceptions. Their principal objective is TO MOVE (nb. not to sell, but to move). The second objective is to do so within a CONVENIENT TIMESCALE. These first two criteria are fundamental to most people’s motivation, because people have real reasons for moving house, such as a baby on the way, new job, redundancy, retirement, etc.. These always come with a timescale.

The third objective is AFFORDABLY. In other words, they want to secure a sale and purchase price that enables them to effect the MOVE within the desired TIMESCALE. If PRICE were the primary objective (and agency fees can be included in price in this context) then people would say “I don’t care if it takes two years, I just want my price”. Whilst a handful of sellers might fall into this category clearly they are not committed to a move and you should let the other agents take on their overpriced listing at whatever fee they want! They would probably turn out to be your trickiest clients anyway!

The fourth objective is SMOOTHLY. They want a stress-free, low hassle, easy, convenient and comfortable move. Interestingly enough, once they have moved and the sale is long behind them, it is this element that will linger longest in their mind, and that they will talk about to their friends. And the greatest opportunity for you as agents, is that it is this element that you can influence the most! Within reason, it is the market that determines at what price a property will sell and when, not the agent. But you’re in charge of the hassle!

However, because clients are not usually aware of the issues that can cause stress in a house-move, they only focus on value and price. If we are to demonstrate real value, thereby justifying higher fees, it is our job to demonstrate such excellence of service in advance of, during, and after their move, in a highly positive way that opens their minds to the possibilities available to them, not the limitations. A focus on value and fee is highly limiting – leave that to the other agents. All they do, at best, is give the clients what they want.

So I say, go further. Don’t only give the client what they think they want. Promise, and then deliver, a level of service that will blow their mind. And I promise you they will pay you handsomely for it.

Please feel free to contact me if fees are an issue in your area and you want to do something about it by enhancing your public’s perception of your service. Because perception is as important as reality!

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© Richard Rawlings 2010
Richard Rawlings is the founding director of Estate Agency Insight, which specialises in helping estate agencies harness opportunity through innovative method, marketing, publicity, and training. He can be contacted at or on 0845 838 1354.

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