Would you serve Hungry Man frozen T.V. dinners at your wedding?
Sometimes hiring a professional caterer makes better sense,
even though you have cheaper alternatives
I received and I’m sharing a funny antidote from my Lender: Jason E. Gordon recently. I added my creative liberties to it and offer my take on it below. Jason, thanks for sharing this analogy with me, so sad but true, ironically funny and so perfectly stated!
You don’t need a Realtor in this market they said.
Any Realtor will do they said.
“A past client of mine – who owns a pizza shop phoned me today and proceeds to tell me how he is going to buy a property (FSBO) so both parties can “cut out the brokers fees”. He goes on to tell me how proud he is that he read “THE BOOK” (what book I don’t know) and is following it’s instructions for investor success.
In the next breath he asks me to run comps, closing costs; give him contacts for mortgage reps and title/escrow companies and then to add insult to injury, he wants my advice on what the next steps are to completing the transaction as well as my negotiation tips.
I took a deeeeep breath…asked him to hold that thought, I was on my way to his pizza shop to have this conversation in person.
I arrived a few minutes later and before I would let him speak, I handed him two frozen pizzas I bought at the supermarket on the way there. I asked him to place them in his pizza oven so they could cook, then would he cut them and serve them to me at my table before we could talk business.
His gaping mouth conveyed the shock this caused him – “How dare you ask me to do such a thing”, red faced and agitated, “You know I make the pizzas from scratch, you dare compare this frozen card board to my homemade masterpieces?” “My pizzas are how built my reputation pay my bills!”
Then he paused, he dropped his hands that had been flailing about and
I just looked at him and smiled … I could see the light bulb 💡 turn on in him.”
~from Social Media, Author Unknown
There are consumers that eat frozen pizza, there are those that think Cost Co and Domino’s make edible pizza and there are many great pizza joints and pizza makers including home chefs that do it themselves like me.
The point is there will always be a few for sale by owners, there will be iBuyers, and people that think discount brokers are the same as full service REALTORS*; but you have to know and be able to articulate your value. You have to realize you can’t make gourmet pizzas and sell them for frozen pizza prices; nor should the perception be they taste the same so they should cost the same.
Nordstrom’s never panics when Target has a sale, nor should you when you you are treated like a commodity. In fact, you should only panic if you do not know how to convey your value to your prospects, because in the absence of value, people only see price.
I’m proud to have built my business with guys like Jason E. Gordon because we both battle this assumption daily, but have the competence and character to convey our value to the people that ultimately we want to work with and we let the jackasses go to the discount brokers. You truly get what you pay for and that can cost you thousands in real estate.