• In my monthly networking meeting, a business owner raised an interesting insight about his marketing plan.
  • When offering 25 percent off to customers failed to increase traffic to his shop, a small tweak in his strategy yielded more powerful results.
  • I thought about how this revelation could apply to real estate agents, and the way consumers perceive a home's value based on certain language.

I need your professional opinion.

I found myself in my monthly networking meeting. This networking group includes a bunch of business owners in our community who get together and troubleshoot.

One of the guys, Nick Whitney, owns an armament and weaponry business. I am not sure of the exact products or services he offers, but he raised an interesting insight about his marketing plan.

He said that on the back of his business card, he was offering 25 percent off all purchases in the store. His goal was to increase traffic to his shop.

He told us that the call to action was not effective.

What Whitney did next was change the back of his card to $25 off. He continued to tell us that a customer would actually save more money by taking advantage of the 25-percent-off deal, but his sales increased exponentially with the $25 savings.

I thought about how this example would help me in real estate, so I asked the question. “What do you think of when you see a sign on a house for sale that states ‘price reduced’?”


The answers were:

  • Why is the seller desperate to sell?
  • What’s wrong with the house?
  • What’s wrong with the neighborhood?
  • Why would I want to purchase that house when the seller wants out?

This was interesting because we all know agents who will take an overpriced listing with the agreement to “reduce” the price in three weeks.

The public perception or the psychology, if you will, does not reflect that attitude. It actually repels the future buyer.

So, my question is, what can we do to change the psychology or perception of the buyer when lowering the price on home sales?

Maybe offer a $20,000 discount if under contract within 30 days, or $25,000 discount on all offers.

We need to start looking at the psychology of our marketing. What is the consumer’s perception?

Melinda Goodwin is Luxury Real Estate Advisor with Engel & Volkers St. George, Utah. Follow her on Twitter or Facebook.

Email Melinda Goodwin.

Show Comments Hide Comments

Comments

Sign up for Inman’s Morning Headlines
What you need to know to start your day with all the latest industry developments
By submitting your email address, you agree to receive marketing emails from Inman.
Success!
Thank you for subscribing to Morning Headlines.
Back to top
×
Log in
If you created your account with Google or Facebook
Don't have an account?
Forgot your password?
No Problem

Simply enter the email address you used to create your account and click "Reset Password". You will receive additional instructions via email.

Forgot your username? If so please contact customer support at (510) 658-9252

Password Reset Confirmation

Password Reset Instructions have been sent to

Subscribe to The Weekender
Get the week's leading headlines delivered straight to your inbox.
Top headlines from around the real estate industry. Breaking news as it happens.
15 stories covering tech, special reports, video and opinion.
Unique features from hacker profiles to portal watch and video interviews.
Unique features from hacker profiles to portal watch and video interviews.
It looks like you’re already a Select Member!
To subscribe to exclusive newsletters, visit your email preferences in the account settings.
Up-to-the-minute news and interviews in your inbox, ticket discounts for Inman events and more
1-Step CheckoutPay with a credit card
By continuing, you agree to Inman’s Terms of Use and Privacy Policy.

You will be charged . Your subscription will automatically renew for on . For more details on our payment terms and how to cancel, click here.

Interested in a group subscription?
Finish setting up your subscription