If there’s one thing that’s made me realise how life has changed over the last few weeks, it’s the thought that clocks going back gives me an hour more to work – not an extra hour’s kip as it used to be. Being able to spend my dotage becoming a teenager again is looking more and more remote right now.
Trying to put the hour to good use, it occurs to me that ours is a watching industry. Given that so many agents are small companies, their ability to embrace change is directly proportional to whether they see a commercial advantage in it.
It’s been enlightening to speak to so many different people in such diverse parts of the country over the last few weeks, but the comments are remarkably consistent.
No great surprise there, what with portal changes, software changes, social media changes, advertising changes, tech changes etc. It’s entirely possible to go off up an expensive blind alley – and no one wants to make that mistake, especially when profits are slim and a wrong move might tip a company over the edge.
Change creates even more fear when you consider the average age of a business owner, and the likely average age of the person pitching them. I’m reading a book about grey hair in the US West Coast tech industry, and whilst the average age there of a customer CEO is over 45, the average age of the tech workers and sales people is in the early 20s.
I don’t want to court too much controversy by trying to guess the average age of an estate agent proprietor here in the UK, but let’s estimate that it’s probably a bit older than their US counterparts.
So essentially what you have is a bunch of people half your age trying to sell you things you don’t really grasp that well.
Asking for help is VERY un-British [particularly if you’re male] and you are NOT going to ask a rival agent – so you naturally sit and see what happens.
Is it any wonder then that it tends to be the big corporate agents who take the plunge and test things out, and if there’s a massive uplift in shares/value, they’ll be the ones getting it, much to everyone’s chagrin.
That intrinsic defensiveness is perhaps one of the things that’s served the property buying and selling industry well, but fear of change is a real progress killer.
Sole traders have an intrinsic disadvantage over bigger groups in that risk costs are borne by that trader alone: bigger groups, however loosely associated, can spread that risk.
Given that 80% of agents are one or two office operations, then despite the fact that many sit back and pillory outfits like Countrywide for risking change, this aversion to risk and change isn’t going to defend against the progress of these bigger companies, let alone the digital ones.
I’m not for one second denigrating smaller companies, who form the backbone of the industry, but I am questioning whether there’s a way the smaller agents can defend the typical divide and conquer nature that bigger, and digital, agents are using against them.
Sitting back and watching might seem to make sense, but with things moving this fast I’d suggest it’s not the way to win.
Ed Mead is now a director of outsourced viewing service www.Viewber.co.uk and an independent property consultant / commentator: ed-mead.com
Enjoying your articles, Ed! Really easy to relate too. Good stuff!
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Not sure i agree. Its the small agents who do try things first because they are allowed to. Countrywide is now struggling for refusing to embrace change. Connells only started doing floorplans last year .
You look at all successful local agents they are streets ahead.
photography
facebook
twitter
bespoke offices….etcetc
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One good reason is that they are usually run by people who love and live estate agency as opposed to franchisees and employees. We are always looking out for new angles. Its a passion for me.
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I volunteer to try any new technology or service offered on a free trial basis…..and then give my honest opinion on PIE of any effect it did or didn’t have on business. If anyone else wants to join me in volunteering, then we could form a panel of ‘trialists’ ….which would help reduce any possible individual bias (although I like to think I am fairly technology savvy, open minded and fair).
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@AgentV
Would you be open to letting Joe Public trial your services for free?
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If it makes a difference, and it’s good value, delivering more than it costs, then I’ll buy it. Isn’t that what I already do for the public?
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@AgentV
No Agentv – what I’m saying is would you allow Joe Public to sell or let via your company for free so they can test drive your services as an agent at no cost?
It means Joe Public can evaluate what you do at your cost. You could have a proviso, it it delivers then you charge them next time!
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I still believe that’s what I do anyway…as I tell all my vendors that if they are not happy with what we do, we will try and correct it, and if they are still not happy… they are free to leave and go to any other agent at any stage…we will not hold them to a contract and we will not charge them. Can’t remember the last time it happened, but if they choose to they are free to trial our services and then change their minds at no cost. We even used to have a ‘pre-marketing review’ where we would do all the photographs, floor plans etc. and if they didn’t like what they saw they could choose not to use us (only stopped doing it when people stopped taking up the option).
However, that aside, the whole point with this is a free trial is what most ‘new tech innovations’ should, in my humble opinion, offer. If they believe in their product that much they will know that most people who trial it …will want it. Its a way of overcoming resistance, objections and making trying it a ‘no brainer’. The ‘What have you got to lose’ principle.
Now tv, netflix and amazon prime are all things that were originally brought to my attention using this principle (and they all still earn money from me). If new product providers don’t want to offer this, then that’s up to them, but then I think they are missing a trick, and most agents will be less likely to give them a chance.
I am offering my time and effort to trial new products and give an honest review (if allowed to). If no-one wants to take up that offer….then of course that is their choice. It’s no skin off my nose, so to speak.
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“Would you be open to letting Joe Public trial your services for free?”
For what I would suggest be a large proportion of ‘traditional’ Estate Agents throughout the land I would suggest that is already the case, Mr Mealham – only we call it ‘No Sale, No Fee’.
Unlike those whose sole marketing aim is to collect the Wonga.
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Well said PeeBee. Just about very agent in the country spotted that but for one!
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That would be every Agent then, Woodentop – Mr Mealham left the building some time ago in that respect…
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No sale no fee isn’t the same as suceed and free
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Unfortunately Ed, the industry has relied too much on tech driving business. Rather than agents driving business, using tech to assist voids
The counter balance is out of sync and although heavy backed VC models find ways to automate people out of the game to drive costs down. Many of the techs, fail to realise estate agency is a people to people game.
Equally, the wrath of legislation could go against smaller operatives, where bigger models can buy in experience to try and keep compliant. And even today’s £500-£800 online only budget models need fear, as their low cost fees are attracting in other £199-299-399 cheaper models that must be worrying the CEO’s of existing high cost budgets, for which I expect the first will start exiting in the coming 6 months.
Tiz changing times. But people will still pay premium fees for solid premium service.
Tech should help like GPS. Not fully drive yet.
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Very good article Ed. I’m a 63 year old one office owner and attending the Excellent Negotiator Conference on Tuesday made me realise more than ever before we have to think young.
Young means social media – that’s where the future of sales lies – get on it or get out of it!
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Obviously some disliking dinosaurs out there – wake up guys – or you’re dead meat!
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I agree, the best defence is to become well known and a trusted part of the community….win ‘hearts and minds’. Any avenue that can help achieve this has value.
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Dear Ed, your comments are very valid and even more so with your experience. However, as one who is a seasoned estate agent, I too welcome change, but I cannot see any threat from online agents in central London whatsoever. change means to me that we use modern technology together with traditional values, I invite you to ring ‘Purple Bricks’ or whoever and hear the quality of the ‘Professional’ estate agent on the line? Just take a look at the ‘Glamorous’ Photos? well most properties don’t have floor plans!! you wouldn’t have run D & G like that Ed. There has always been the rumor that we are near the ‘death’ of the independent, that’s been going round since the 1970’s, we are still here and yes we have to brace change but for the benefit of the customer. ” we don’t compromise on our service, so why should we compromise on our fees”
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Rickman2154
“However, as one who is a seasoned estate agent, I too welcome change, but I cannot see any threat from online agents in central London whatsoever…”
You may well be correct – I cannot break down the listings on PB’s London “branch” to establish what they are or aren’t doing in “central” – but they have something like 2100 properties listed in total.
Granted – that will be spread over an area with an awful lot of chimney pots – and a percentage of them will no doubt also be listed with ‘Traditional’ Agents – but that’s still a chunk of stock that would normally be gracing window cards on High Streets that now sit in cyberspace waiting for a loving new owner to happen upon them…
…and the listing money has already been banked by the Agent in EVERY case.
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Everyone on this page has made a valid comment.
Do we fear change?
Do you remember when your Monday afternoon was taken up planning your weekly newspaper advert, getting the right photos in, double checking the write ups and prices?
Now we do all this before we display on the websites.
The changes we talk about aren’t really a big difference to 20 or even 30 years ago. The change therefore is how the buyers and renters approach us the estate agent. Texting, emailing and sometimes they even phone us! And of course how we engage with these customers can be the difference between success and failure.
But surely isn’t that the same as before? Understanding your customer is a basic part of sales, the fact they may rather just communicate none verbally is their preference and we should be ready to adapt but change?
Don’t let technology fudge the job,
“plus ca change mais c’est la meme chose”
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Nicely put.
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I’m not for one second denigrating smaller companies, who form the backbone of the industry, but I am questioning whether there’s a way the smaller agents can defend the typical divide and conquer nature that bigger, and digital, agents are using against them.
I have to say I’m somewhat bewildered by the article. You haven’t said anything that agents do not already know, unless they are just starting out in life. The issue since the year dot for any small company, not just estate agency is that they are always going to be vulnerable to big corporates who have the money to invest and test. It is only then that small companies can see what works or not and develop to their own needs. Small companies who will never come together, as they will loose the independence and right to govern their own business ….. and that is why they are a small business. They do not have the financial clout and never will, so will always wait and see. Not every idea works, so the bigger companies take the loss that they cannot take.
As for conquer nature that bigger, and digital, agents are using against them. The only issue there is on-line only agents? Haven’t 7,000 agents come together on that subject as a collective, we are talking principle, so lets not get off track into you know what!
Financial restraints are always an issue in life and the sudden increase in web-only agents has only come about because they have used IT to good effect but using not their own money but from crowd funding. Sooner or later to be recognised as on of the biggest scams of the century. Small companies cannot ever expect to compete with TV campaigns unless they get crowd funding or use an outlet that represents them … bother nearly mentioned that organisation again (lets not get off track now).
IT is nothing more than quicker access, nothing more if you evaluate it properly and is used by all companies big and small today. I’m therefore at a loss what this article is really about …. anything new = no. Suggesting a fix = no. As to questioning a way smaller agents can defend .. ooops nearly mentioned that name again.
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But what about if there was a way to start defending and fixing at a comparatively low cost, without compromising your independence. Would you be interested then?
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The principle of low cost isn’t the answer, all you end up doing is cutting income while overheads continue to rise. A business runs on a fiscal plan that is sound and evolves over time. The nature of the beast is another matter, let alone getting an agreement. Price rigging cartel will get one particular EYE reader hot under the collar! Someone once said that low price is related to poor sales staff being unable to justify themselves to customers. Strange but more expensive salespeople have no problem with price….. it is the product and service the consumer wants and all too often in our industry is never sold to those that go for budget.
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sorry what I meant was in response to your comment ‘I am questioning whether there’s a way the smaller agents can defend the typical divide and conquer nature that bigger, and digital, agents are using against them’
What about if smaller independent agents had access to systems and products that could ‘defend the typical divide and conquer the nature’ at relatively reasonable cost (say £1 to £2 per day). What about if these systems could also actually also help save time and money by increasing efficiency and also deliver more business (at perhaps a higher cost for the increased business part)? Would agents be interested? Would you?
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“What about if smaller independent agents had access to systems and products… at relatively reasonable cost (say £1 to £2 per day).”
That’s a price range variation of precisely 100%, AgentV – some might not take too kindly to agreeing to something only for the perceived cost to double between ‘sale’ and ‘sign’…
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I think any business that rejected an idea that “worked for them” would be unwise. Just like any product that can help a business you would have to put it up for evaluation and see if the market liked it. A new top quality and efficient product at a low price ….. h’mmm sounds inviting … could it be a first?
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it was meant to be between £1 and £2 a day…final pricing not worked out yet.
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It’s in the early stages of development, but I use a very basic version and I reckon it saves me at least 7 or 8 hours a week in time. It may not be for everyone…but then what is.
Its the first of five products we want to fully develop…hence the ‘V’. The last one is the real game changer (I hope)…but will need substantial work and investment and lots of backing from independent agents en masse.
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I think I’m missing the point in all this, there are no silver bullets that I’m aware of, it’s about presentation and how you ‘pitch’ your company.
extreme ie:
scaleable website-everything/socialmedia campaigns/adwords/SEO/viewber(hat tip)/sign written cars/coffeeshop office/VR/drone photography/q codes/testimonial management/always on 24-7
opening hours clearly defined but will happily go longer where it’s worth it/good company website/sensible portal choice/decent staff retention ( rarely mentioned here ) so collectively we know where we’re at/AND THE PHONE/ PERSONAL CONTACT
for which I am still to find a disruptive alternative
Basically the whole argument boils down to getting a chance to pitch, onliners are lethal where a flag goes up out of nowhere, teddy bears if you are part of the conversation
Most disconcerting for me at least ( and it’s not on the radar in my area ) is the attack on flags by a growing number of councils around the UK, I’ve worked elsewhere and have seen it abused so get why its happening but lose that facility for independents and bump all of us online only?
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