Video: Charge a flat fee versus percent of residential listing price?17160
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 WGAN ForumFounder & WGAN-TV Podcast Host Atlanta, Georgia |
DanSmigrod private msg quote post Address this user | |
| Video: Flat fee products versus percent of listing price | Video courtesy of Jordan Nielsen YouTube Channel | 21 July 2022 Your thoughts? Dan |
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Jamie private msg quote post Address this user | |
| I doubt a percentage would be a good approach. Offer a range of services with a range of qualities x the number of items you provide. e.g. standard photos x 20 vs luxury photos x 40, let them pick what they want. In my experience, you go advertise your lower value items and talk them into the higher value ones. This is why you always see from $99 for example, but the average spend would be more than that. |
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 3D RenderingsAEC Elevation Drawings Montreal, Québec |
ArchimedStudio private msg quote post Address this user | |
Archimed Studio... that rings a bell  What I mean is, in my book at least, it's not exaggerated to believe that a realtor should be investing 10% of its commission in the marketing of the property he's trying to sell. This marketing will also help him/her market his brand and get more listings. I always do a quick calculation with a 2% commission (because that's the very base minimum they will get - sometimes they'll get 3, sometimes more!)... so for a $500K property (very rare nowadays!), the smaller check they will receive if they sell is $10K. I expect of them to spend at least $1,000 on my services. NOTE: I do not change or adjust my pricing to get to this number, but I know that if they're not willing to spend this much on a property at this price, they are probably not valuing marketing enough, and I am happy if they go to another cheaper provider. I focus on high-end services, therefore many high volume shooters will not relate to my way of doing business (Jordan, in the video, is one of them). But I'm open to reading what other think. Do you think spending $1K on a $10K commission is exaggerated to market the property AND your services? Matt |
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Buster6070 private msg quote post Address this user | |
| Matt, what do your services include? I agree with an agent spending on marketing, but when I was on an agents team we never spent that much on media alone. You have to take into account Property Brochures, Social Media Ads, Open Houses (Wine & Cheese or Sushi), Signage, etc. There's a lot of other cost in marketing a house besides the physical media side. So have to take that into consideration when doing the math backwards from an agents commission and deciphering what they spend on Marketing. | ||
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3D Renderings AEC Elevation Drawings Montreal, Québec |
ArchimedStudio private msg quote post Address this user | |
| I'm fully aware they have other expenses... Just like the $1K I charge isn't all free money for me to buy designer clothes (well, groceries and mortgage payment is more accurate . My very base price for only photos for a small condo is $350, or $500 for a very small house. I often charge between $650-900 for photos. Other photographers in my area keep telling me and everyone else that the max rate or our area is $200/shoot... If that makes them happy to think that and charge low, I really don't mind anymore. I used to chat to many of my peers and try to talk them into charging more (some charge as low as $70 per shoot), but it's a lost cause. They fear they might lose their clients if they raise their prices by $10... I keep telling them "if your client is ready to change for $10, you definitely need better clients!" 10% is not a rule by any means. I've shot a $10M property a few months ago, and I only charged $3.5K (just for photos, twilights and drones)... So I was pretty far off the 10% of their $200K minimum commission ... but for sure other photographers in my area would have charged $250ish for this one (because it's what they charge for their "luxury package" - sigh... ) If all a realtor sees is price, no matter how cheap you are, it will always be too expensive. If a realtor understands the value of your work, price rarely even matters (as long as you provide enough value). Unfortunately, only a very few understand PS: I do everything - photo, video, drone, virtual tour, etc... |
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Buster6070 private msg quote post Address this user | |
| 200 Max? Yeah that's low. I'm just getting into the business, but have experience from the agents side. Still working on my pricing, but will go with flat rates instead of percentage. Worst case scenario is if I build a good relationship with an agent and they end up with a listing where their commission is really low, then we could work out special pricing for that listing. One of the good things with the market shifting is it'll drive a lot of these part time agents out. In the past anyone could sell a property because the market was hot. Now more than ever agents will need to showcase their listings with professional quality marketing to differentiate themselves and win their clients over on their listing presentations. Good luck with trying to drive the market rate higher in your area. Hopefully you can convince your peers to stop lowballing. Everyones time is valuable, and gate to see folks sell themself short. |
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Jamie private msg quote post Address this user | |
| I guess it all depends on your area and the amount you can sustain. Here there are a lot of companies trying to get market share so the prices reflect this. I'd love to charge more of course, who wouldn't? The one trick ponies here tend to be a dime a dozen and always struggle for work. Unless you offer more than one thing, most agents (unless they really like you, or your work is just that good) will go somewhere that is more convenient for them. I've not seen someone in this area try to market based on the property cost. Considering this is the most expensive area in the country, that would not fly. The average house here is 1.6 - 1.9 million, with a lot of nicer properties in the 2.5 - 4 million range. 3% on a 4 million is $120k. I'd love to get 10% of that  |
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3D Renderings AEC Elevation Drawings Montreal, Québec |
ArchimedStudio private msg quote post Address this user | |
| I just want to reiterate that I DO NOT charge based on listing price, or percentage of potential commission... I just like to keep that number in the back of my mind to give me an idea of what, to me, would makes sense for a realtor to spend on marketing. That's all Quality over quantity is what I do... less photos, less shoots, and much higher $$ in the end Remember one thing though. Your $200/shoot client will never become your $2,000/shoot client. If you want to charge more, you also need to change your client base. But think of it this way. If you raise your prices by 25% and lose 20% of your clients, well, congratulations, you just got a raise for less work (more time to improve the quality even more - which means more higher paying gigs, etc... But maybe I live in unicorns and rainbows land  Matt |
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WGAN Forum Founder & WGAN-TV Podcast Host Atlanta, Georgia |
DanSmigrod private msg quote post Address this user | |
| Video: Commission...A bad business model for real estate photographers...here's why | video courtesy of Jordan Nielsen YouTube Channel | 27 July 2022 Hi @Jamie @ArchimedStudio @Buster6070 This video (above) seems to be related to your real estate photographer pricing discussion. Best, Dan |
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