With Google, Yahoo and MSN looming large on the real estate classifieds market it is time for some less than creative thinking from the real estate portals. The gist? Sign up for a multi year subscription now and we will cut our annual price hike by such and such %. In the past these price hikes have been in the range of 7-9% (ouch) but with multi year deals you could get that down to 5 or maybe 6% (ouch again).
So get set for a new spin on pricing as the major portals try to sign up agents on multi-year deals and lock them in for the long term. So what are you going to do? My opinion is that if you strike a multi year deal then you are surely going to cost yourself money. As none of the major portals to my knowledge publish actual pricing it makes it very hard to tie the % increase to published prices. This is because no one agency is treated the same and sales people have a limited range to get your signature on that piece of well crafted paper.
Think first
If Google do launch here in Australia then it will certainly lower prices as I am sure whatever they do will have an impact on the major portals. Another tip, just do not accept a price rise, ask for something extra in return, or ask for a discount. You may also want to think about your online strategy so take a few weeks to think about it and then make a decision. There are many options out there now although Domain.com.au and Realestate.com.au are the obvious first choices. All you need to do is make sure that your representative does not think as he/she calls you that it is a done deal year in and year out.
Better still
If you are one of the smarter operations then call a meeting of all of your local agents and create your own strategies going forward. This can include print and online advertising. Just because you compete vigorously does not mean you can meet once a quarter to discuss the markets.
Would you sign on a multi year deal?