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How would you respond?2956

3rd Party
Service
JonJ private msg quote post Address this user
Hi All,
I am looking for some feedback on how to respond to this real estate agent.
Here's the deal, I am running a New Client Special for the month of October where I provide a Matterport tour (up to 2000sf) and 25 HDR photos for $99.

Example

I get a call to ask how much it would be for a 2250sf home. I tell them it will be $175. Here is her response:

"Geez, it was easy to justify $99, but now it's turned into $175. So I'm thinking twice about it. Even though the house is 2200 sqft., it's just a regular 3br/2ba ranch house with big rooms. And it's a really good listing, so this expense is not really necessary. The last house in the subdivision went under contract in 12 days.
But okay, I guess I'll do it. pending sellers permission."

How would you respond?
Post 1 • IP   flag post
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Jamie private msg quote post Address this user
How much commission do they make?

Some agents are just so bloody cheap. Do you think they would halve their commissions???
Post 2 • IP   flag post
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Lbelland private msg quote post Address this user
I feel square footage doesn't accurately correlate with time spent. I feel the number of rooms is a more accurate measure of the time it'll take.

Getting through doorways and up and down stairs takes time. I would charge by the number of rooms and whether it's a one or two story home or, if the property has a basement.
Post 3 • IP   flag post
JohnBecker private msg quote post Address this user
So she's just bitching about having to pay more.... for more. But she's going to use you. I wouldn't make any reference to anything other than, "Thank you for your interest! When would you like to schedule your shoot?"

I hate to say it, but a Matterport tour plus 25 pics (even if they *are* HDR) for $99??? Dude!
Post 4 • IP   flag post
VRealExperience private msg quote post Address this user
They used to pay photographers more than $99 - but it's as if this became an even more affordable commodity.

If everyone dropped their price at these things - everyone would be out of business

Put your sales hat on! Not to be rude - just saying that's my advice

I still laugh when my Matterport sales rep told me people charge .25/.35 SqFt - I was DUPED!
Post 5 • IP   flag post
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JonJ private msg quote post Address this user
Hey @JohnBecker,

The 25 photos are not from the Matterport Tour, they are HDR images shot with a DSLR Camera.
I realize that this is a dirt cheap offering and by no means do I think I make a living at that price (that is why it is a new client special). However, I tested numerous price points over the last 2 years of business and my market will barely support $0.10/sf

Jon
Post 6 • IP   flag post
Helen private msg quote post Address this user
@JonJ
As you realize that it is dirt cheap and it is only a new client special as it is only 250 sqft more. Consider, if you did do it for the $99 could that customer turn into a long term client? Generating thousands yearly for you in the long run?

If that agent can turn into a long term client for you, paying at your regular price. I feel it would be worth the roll of the dice.

I personally would not do photos and MP for $99 but hay if it gets you long term business then it's worth it.
Post 7 • IP   flag post
JohnBecker private msg quote post Address this user
If going dirt cheap is what it takes to put food on the table, I can't argue. But it's going to make it really, really hard to justify a future, sustainable price structure to anyone who's seen your current rates.

As for your still photography.... Full disclosure: I HATE HDR. I don't dislike HDR, I don't find it not to my taste. I HATE it. Do yourself a favor... if you're using Photomatix, at the very least have a look at Enfuse. It's about a zillion times better.

If you can do $0.10/sf for stills, and $0.10/sf for Matterport, you're not doing so bad. I'm in a market that has a median price point of about $165K, so it's not like I can command big bucks for my work. But if you go cheap to get business, you're going to wind up living with the bottom feeders. Aim high, deliver a superior product, and forget about the agents who don't see the value. Let them go. You have to create a market that will be willing to pay you what you want.
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Jamie private msg quote post Address this user
We have a range for our photographs. I have someone that will do a shoot for $100 and others up to $600. I let the client decide, but they get what they pay for. Matterport we charge 9.5c per sq ft and it gets cheaper after 6000 sq ft.
If you have competition, see what they are charging. Remember you still need to pay your processing fee so going cheap just kills the market
Post 9 • IP   flag post
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JonJ private msg quote post Address this user
Helen,
That is exactly the reason for the promotion. However, seeing as she is giving me grief for a price less than 50% of my regular rate, I don't see this as being a long term thing.
Post 10 • IP   flag post
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Jamie private msg quote post Address this user
@JohnBecker well said
Although I do like hdr :p
Just not as a replacement to multi strobe or multi layer. If the client is paying good money then you give them a good product
Post 11 • IP   flag post
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Jamie private msg quote post Address this user
@JonJ
Yeah drop them if they want cheap. I've found these ones generally give you the most problems and you need to chase them for payment. I have a bunch of clients that want quality. We turn up when booked, act in a professional manner, produce a great product in a stated amount of time.that's most of the battle right there. When you have integrity you will be ahead of most of the other operators.
Post 12 • IP   flag post
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JonJ private msg quote post Address this user
@Johnbecker and @Jamie,
To be honest with you, I only started taking pictures for the first time 8 months ago. And in this area, HDR is the standard. While I would love to provide the highest quality product possible, no one would be willing to pay for it.
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Jamie private msg quote post Address this user
@JonJ then I guess you can just provide what the market asks for.
Are you post processing the hrd or in camera hdr?
I like hdr and use it when it's needed. It's always served me well
Post 14 • IP   flag post
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JonJ private msg quote post Address this user
Post processing. Any critiques are welcome!
Post 15 • IP   flag post
Helen private msg quote post Address this user
@JonJ I recently had client stop using my MP service as it was to expensive. They still use me for other services and asked if there was anything I could do to bring down the price, as they liked it but could not afford to keep doing it.
I let them know that I could do a basic scan and that there would be flaws in the model. I mentiond that in the dollhouse view there would be grey areas and may be able to see through some floors and you would not necessarily be able to navigate fully into bedrooms or living rooms or around kitchen islands etc, but you would visually be able to see everything when inside the model.
I did a 3000 sqft model for them with all this in mind and I did it in 42 scans so although I dropped the price drastically from what they were paying I still came out ahead.

Here is that model and they are happy with it.
clickable text
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Jamie private msg quote post Address this user
@Helen that's a great idea.
I use the mp mainly to do floor plans. I offer them the basic mp for an additional $x (size depending) with the same caveat that it's not the greatest for dollhouse, but the walk through is still good.
Another option is giving them some VR glasses to offset your price. You can buy bulk vr glasses for around $10 each. Tell them they are $49 value, the conversion is $49 as well. Basically a $100 free gift and teach them how to use it to gain more listings
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lisahinson private msg quote post Address this user
@Helen and @Jamie both great ideas! Thanks for sharing.
Post 18 • IP   flag post
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JonJ private msg quote post Address this user
@Helen,
Do you advertise the "basic scan" or is that just for the one client? My hesitation would be that when people view the model they won't know that it is a basic scan and will associate my company with substandard quality.
Post 19 • IP   flag post
Helen private msg quote post Address this user
@Jamie
Hi Jamie, what you are saying all makes sense and I have shown them the VR, when MP flipped the switch all their present models are VR. They like it but do not see it as an upgrade as not many people have vr yet. They explained their point as it was very inpersonable and that most couples bye a house together so having vr on one the other has no idea what there viewing and if they both had them on they would both be in different areas. Yes I can see their point, I can imagine one day when multiple people will be in vr and could be in the same model and interact with each other and see each others avatars and talk but I think that will be some time coming.
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Jamie private msg quote post Address this user
I don't advertise it, but I am going to. Might as well get a fee extra bucks while you are there
I think if you explain the difference or perhaps show it that might help.
Get one of your models, duplicate it and delete some scans to make it look basic. Show the difference
Post 21 • IP   flag post
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Jamie private msg quote post Address this user
@Helen yeah very true.
I have my agents using it to show how they will market the prospective clients home if they get their listing. This side of vr isn't really that usable yet, but if the agent appears to be on the cutting edge and proactive, they should get more listings. I have 25 agents at the momen doing this, and generally 1 to 2 more each week start as well.
Post 22 • IP   flag post
Helen private msg quote post Address this user
@JonJ

No I have not advertise it but would, there is also no way anyone would know that my company did it. My name is not on the model, theirs is and it is on their sight & mls. It is also not on any of my social media or my website.

I do hundreds of video tours for them every year so I have no problem working out a way to save them money on MP
Post 23 • IP   flag post
VRealExperience private msg quote post Address this user
@Helen
Whats interesting is that "low" level scan is looks great to me! Then again I have only done 2!

I charged $500 for my first client, on a 3,000SqFt. I am starting to feel like I did her wrong, and she is a good friend. She was my realtor when we were searching. 3 YEARS we put her through!

When I started my business 1 month ago she was my first call.

Now I deliberated alot when I set the price...I told her I would charge her less than other agents.

The thing is - there is no market set for this here. These are some examples of Virtual Tours I am competing against:

http://buffalovr.com/ah/index.html
https://www.aldomedia.com/buffalo-virtual-tours.php

The challenge is they did get around to a number of people. I am doing this on the side, hopefully one day I can offset my student loans/mortgage/salary enough but for now I have the luxury of setting the market...or trying to by working evenings and weekends, whilst balancing a family.

@JonJ - Your trying to be creative and I love that. I highly recommend maintaining that promotion, but not all business is good business. As others have mentioned, if she is giving problems now, she just doesnt understand value.

Here is how I am defining the value for agents in my area:
http://www.vrealexperience.com/blog-1
Post 24 • IP   flag post
Helen private msg quote post Address this user
The only reason I even thought of doing a scan like this was because this is what my competition offers, but they do these types of scans at there full price. To be honest I did not think a scan like this would actually work until I saw there work.
For the time I spent on that model my time to pay ratio would have been about the same and I kept a client!
Post 25 • IP   flag post
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jfantin private msg quote post Address this user
@Helen, the alternative of a "basic" scan is a good idea as a means to keep a customer that otherwise you would lose.

I wouldn't go to the extent of offering a "basic" scan to every customer as an regular option because it could canibalize the main offer without any advantage.

But, if the market is difficult and others are threatening your customer base then it makes a clever defensive move!
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Lbelland private msg quote post Address this user
I'm thinking out loud but it sounds like @Helen has stumbled across the mother of all pricing platforms.

Divide your time into the scans for your best work, and come up with your pricing system based on scans. That should pull it to within everyone's budget.

Offer three levels of service: Silver, Gold & Platinum. Realtor's relate to those levels because all of the lead generation and coaching systems pitched to them offer those levels of service. Agent's know there's a difference.

The key here is you're earning the same amount for your time regardless of level.

Make a list of the agents by level, and do some Facebook advertising promoting those Realtors (your clients), as providers of VR Home scans. Don't take that list down and when the agent that sees he's on the list, at the Silver level, he'll be ordering a Platinum scan very soon.

Facebook advertising is dirt cheap. You may even get some seller leads you could refer to your best "Platinum" clients.

That's a tangible benefit for them.

Something to think about...

By the way, I don't offer Matterport or photography services. I'm a broker that uses a Matterport for my personal listings.
Post 27 • IP   flag post
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suncoastskyview private msg quote post Address this user
Our realtor organization held a "Tech Expo" last week. I gained a few good leads but while tending my booth, some knucklehead "expert" was in the conference room podium telling everyone about how the Matterport can scan a whole house in 20 minutes.
Whiskey, Tango, Foxtrot, OVER.
____________________________________________________________
To play devil's advocate for a moment; chances are good that the realtor mentioned above has already discounted his/her commission for that sale. Many clients insist on it. On top of that, the realtor must pay a big percentage to the broker and pay unreasonable "desk fees", MLS subscriptions, internet fees, advertising/marketing, association fees etc. ad infinitum. Yes, they are stingy but that is because they are almost always broke.
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TrustedPhotoDC private msg quote post Address this user
HDR is a file format and process commonly mistaken as the low dynamic range result. When most people say HDR, they are inferring a tone mapped, multi-exposure image. To view a HDR image, also referred to as a 32-bit float image, you need a HDR monitor which will run you about 20k. Otherwise all you are viewing on your monitor is a tone-mapped LDR image. The intermediate processing of combining exposures creates a HDR image and opening a HDR image on a standard desktop monitor will not look very good, so the only viewable result is LDR.

Just as people continue to call a picture slide show a virtual tour, tone mapped LDR will continued to be mistaken for a true HDR image.

Note: new HDTV's that claim they are HDR ready, do not display 32-bit float images but do increase the dynamic range over current HDTV's.
Post 29 • IP   flag post
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