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Real Estate News and Advice |
July 9, 2008 |
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Can Technology Vendors and Realtors Call A Truce?
by Blanche Evans
For a variety of reasons, Realtors are declaring war on their technology vendors. Many criticisms are richly deserved. Some online companies are arrogant. Some have conflicts of interest. Some give rotten customer support. Some charge for every little thing until Realtors feel more like marks than customers. Some have crummy products that don’t work. Believe it or not, there are companies out there that are ethical, provide a good product, and charge a fair rate for services, but these companies are also getting booed from the stands. Vendor backlash is assaulting the entire sector, much like the stock market sell-off is taking blue chips down with the companies that have yet to show a profit. And that makes it that much harder for any company to provide value to their customers. That's why it's time to speak up. Realtors and vendors are both groups which are facing profitability challenges. Is there a way to have a meeting of the minds so they can work together more effectively? Here are three things both Realtors and online vendors can do: Consider value Vendors: You want to create a product or service that Realtors will buy. Does your company answer a need? Does it help your target group make more money, or save time or money? Is it easy to use? Competitive in price? Do you support it with easy-to-reach customer and technical support? Guess what? Even if you answered yes to all those questions, that still isn't enough. Here's one more question that may make a difference in whether you are still around a year or ten years from now: Do you have enough profit built in to your products that you can withstand the trials of doing business? There's no glory in being the cheapest if your margins are so thin that competitors can crush you. It's better to lose some Realtors who just don't "get it," than to try to serve them at unsustainable margins. Realtors: If you have a favorite product, recognize that getting it cheaper is not always in your best interest because the cost savings will have to be passed along to you some other way. Just ask the airline passengers who died on the crashed plane whose company skipped maintenance to lower fares. Along with the product comes quality control and continuing product development. If you want to stay at the cutting edge, give your vendor room to keep you there. And if you have a complaint, say it nicely. Remember, you catch more flies with honey than vinegar. Keep criticisms and personal attacks far from each other. Remember that a good company is always open and responsive to suggestions. Consider the alternatives. Vendors: In a perfect world your customers are MIT graduates who think you are the coolest developer on earth. The reality is you are a technology company serving Realtors, an aging population that is in a high-touch business. That means you had better put a lot more money into customer and technical support than you ever dreamed, and smile about it. And lay off the arrogance. If you are willing to teach Realtors how to use your products instead of telling them how they ought to use them, you'll never go hungry. Realtors: Compare online vendors with other methods. Where is your money better spent? Is it more reasonable to pay a newspaper $27 for three weeks of shorthand in a classified ad section? Or to pay a vendor the same amount to advertise your listing complete with photos, text, and links to your e-mail? Is it more cost-effective to pay $0.35 apiece for hundreds of mailers monthly or to send out a mass newsletter to your whole farm with one click of the mouse? Internet efficiencies are only going to work if you do the work to make them work. In other words, you'll never get results from your online technologies if you don't answer your e-mail, or promote your Web site. There are some things the vendor can't do for you. It's up to you to keep learning and adding to your own marketing skills, and like it or not, that includes mastery of the Internet. Consider the relationship as a whole Vendors: Your target group is made up of independent contractors but they stick together. Make sure you always treat Realtors with courtesy and respect, or they will use their famous networking skills to put you out of business. The fact that they may not know that much about how the Internet works doesn't mean they're dumb. It just means that they have learning priorities. When the evidence is compelling enough that they need the Internet or your product, they will come. Remember that these are customer service-oriented, face-to-face businesspeople. Make sure your service ethics match theirs. Be patient on your growth, and every time you sell a Realtor, consider it a victory. If you convince a Realtor that your services or products are worth having, they will sell you, too. Realtors: Does your vendor supply valuable services that you don't pay for such as traffic, news, or support of the Realtor agenda? Your subscription may help to subsidize those services. Is this a company you think might be around for the long haul? Then understand that any company is going to make missteps especially in a medium as new as the Internet. When a company demonstrates willingness to make corrections, forgive, forget and move forward. Don't allow bad experiences with one or two start-ups to taint your feelings toward online vendors as a whole. Published: August 31, 2001 Use of this article without permission is a violation of federal copyright laws. Related Articles:
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