On Friday (29 July 2016), I received an email from a real estate agent that is transitioning to property media production.

Presently, he shoots aerial for 20 real estate agents for the last two years. ("(I got my 333 exemption last year in February)."

He writes:

"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.

A related MUG Forum thread.

Your thoughts?

Dan

PS while pricing is often asked in the MUG Forum, this one topic anyone wants to publicly comment on. Feel feel to Private Message me and I will post anonymously.