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|WGAN Forum Founder||DanSmigrod private msg quote post Address this user|
|I received an email from a real estate agent that is transitioning to property media production.
He shoots aerial for 20 real estate agents for the last two years. ( "(I got my 333 exemption last year in February)." )
"I would like to provide a full-service property production company (360, photo, video, aerials), which for a beginner, has led to a very STEEP learning curve!"
"I've immersed myself in learning about real estate photography and videography, Matterport scans, and I've been doing practice shoots."
"I believe my photos are close to on par with the 2-3 other providers in my area, and another few weeks of hard work and I should be able to offer a very competitive product. There are no real estate video providers in my area - so nothing to compare to."
"I believe if I provide bundled services - aerial, video, photo, and Matterport, I will, as you say, make the competition irrelevant (I love that, by the way!)."
So, about the three bundles he sent me - bucket of services for x dollars - and the pricing for ala cart services, here are my thoughts:
1. What are (potential) clients willing to pay? Until you ask them for the order, you do not know the answer to that question.
2. What is your time worth?
3. What does it cost to provide a specific 3rd party solution (such as Single Property Websites, FLY-IN 3D Videos, "iPad Videos"
1. Test high. It's easier to go lower
2. Before going lower, add more value
3. Before going lower, test special offer
4. How do you make your competition irrelevant
5. What does your competition charge? (Guide to Matterport Service Provider Pricing)
6. Are your bundles easy to understand?
7. Are your bundles what your clients would logically buy?
8. Can you offer optional extras after delivering the solution? ("Would you like floor plans?)
9. What could you give you client free - after delivering the order - that would be a nice surprise and delight experience? "iPad video" / schematic floor plans / VR on Google Cardboard
At We Get Around, for real estate agents and brokers, we do not offer ala carte pricing. We have one bundle. That's it. If the bundle is not a good fit for a potential client, then it is likely that the potential client is not a good fit for us. (We're focused on $1+ million listings.)
Once the client buys, we do not have any additional solutions to offer them.
You may prefer to run an airline where you charge more for first class; more for bags, more for food, more for alcohol, more for wifi, more for insurance, more for headsets, more for using the bathroom. I prefer to run a six-star airline and everything is included. That's the experience I want.
While we do not get every project, every project is not right for us. We're creating a business where the completion is irrelevant because we provide a 6-star experience.
Anyone that leads with, "how much do you charge," is likely to hear first, "are you winning 100% of your listing presentations? Are you doing as many listings as you would like? Are you doing as many listings as you would like?"
Until establish the problems that we can help solve, we can not discuss the value we bring to the relationship. Then, pricing will not matter.
Related We Get Around Network Forum Discussions
✓ Matterport Pros: Pay Yourself a Commission?
✓ Marketing strategy: get paid when sold?
✓ Forum Posts tagged with Pricing
PS while pricing is often asked in the We Get Around Network Forum, this one topic anyone wants to publicly comment on. Feel feel to Private Message me and I will post anonymously.
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|Rootsyloops private msg quote post Address this user|
I thought this would be a good time to follow up with this post and answer my own question about pricing - 1 year later, with a little more experience under my belt!
In my real estate business, I would always attempt to earn a minimum of $100 per invested hour, after expenses (thinking line an attorney, in terms of "billable hours". I would apply the 80/20 rule to everything, to minimize wasted time and expenses.
I decided to apply that same model to my production business. The aerials and interior photos were easy to make fit that model. Pricing matterport at a rate that realtors are willing to pay in my area, after all expenses, leaves me just shy of that number (but close enough to continue offering the service). Video, probably due to my lack of experience, just didn't work out. I couldn't make it efficient enough to price it in a way that would entice agents to buy in, and still come close to my target hourly number.
I do no advertising, and 1 year after starting have as much work as I need, just through word of mouth (based more on lack of competition than my talent!)
It has been an interesting ride. I expect I will enjoy it for another year or so and then move on to the next venture. I would say, at least in my area, property production is a lucrative business that could provide a great full-time income for someone with passion for it.
I appreciate all of your help getting me up and running. The forum was instrumental in going from 0-60 in a couple months, rather than a couple years!
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|frstbubble private msg quote post Address this user|
|@Rootsyloops just a note on the video. Video is not cheap at all. There is quite a lot of time in the post process. But remember how much production companies charge for a 30-second video. That is what you have to compare your pricing. You are doing it for a tenth of what they would charge for 30-seconds and giving them from 3 to 7 minute commercial.
We have a few clients that don't care for or get Matterport but love the video end of it. We offer property tours, realtor intros, voice over, community tours, and realtor tip videos. I have a few pending waiting for the spring and better backgrounds for each of these areas.
On a side note when we started out the feedback from casually talking to agents in our area we found that as you said a one stop shop for everything was desired. So we changed our business model from just aerial video photography to photos, video, and immersive interactive virtual tours. The funny part is that one of our first clients only wanted aerial video.
Here is a link to a video we produced for a client that only wanted aerial video. NOTE that we believe the aerial video is only an enhancement or a small part of any video project. He was just expecting 1 minute of aerial shots of the property. But talking to him he gave us 3 main points he wanted to get across to prospective clients. The location is next major development, an interstate, and the location having a rail line going through the property. We think we gave him that and much MORE. He was very happy.
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