To Stretch or to Split?

Ok first of all, what are we talking about? 

James, Ian and David over at The Complete Agent (TCA) help agents win listings in the premium market primarily through content, and specifically, their strategy of regular letters written to all homes over a certain price point, regardless of whether they're for sale or not, as a long term strategy of building credibility, reputation as a market expert and trust, in order to be instructed by the owners of high value homes, and hopefully for high value fees. (It is a great strategy, the content of these letters is excellent, and I would recommend tuning in/speaking to the TCA team about their service.)

So far so good. 

But 'who', exactly, are these vendors instructing, after they've received the letter and been impressed by its contents? As in, by which person, and under which brand, will their home be marketed? 

I spoke with one member of TCA, an excellent operator, leading their market and commanding fees of 2% even in the normal volume/resi market, which is impressive. They recounted a conversation with the owner of a £1,600,000 property whose business they lost because their house would be 'the most expensive on their estate agents website, by far', said the vendor. 

Interesting. And there's the conundrum. 

Thats a big fee, circa £30,000 for this agent, but they weren't instructed because their brand is too rooted in the volume market. So to solve the problem, do they: 

Stretch - i.e., modify their brand to appeal to both the volume market and the premium market? 

or 

Split - i.e., create an alternative offering for the premium market, distinct and differentiated from their 'core market' brand, to appeal to this market? 

Im going to get completely off the fence and say I don't think the 'brand stretch' works... (with one exception). 

Brand stretch doesn't work because: 

The exception I mentioned? Is where you 'stretch down', i.e., your brand is already premium, and you take on the occasional home in the volume market, and you can imagine those homeowners being delighted to sell their home with (to use Ian from the TCA's example), Storey's Estates. Careful though, too many of these low value instructions risks your association with the premium stock to begin with! 

Why does brand-split make so much more sense? Because: 

I'd understand someone calling out my bias on this subject, I get it, because I run By Design - which is a premium estate agency brand, differentiation and instruction winning package 'in a box' (as much as I hate that expression), ready to go, and less expensive even than 'doing it yourself'.

But I do have evidence on my side: industry statistician Christopher Watkin analysed 71 markets in towns and cities across the UK. Can you guess how many cases he found where the market leader for the volume market, was also market leader for the premium market? 

One. 

And lastly on the 'bias', I'm not writing this because I founded By Design and it suits my agenda... I founded By Design because I believe in this so strongly; it is a solution to this very problem! 

So if you want to discuss how By Design does that, you can book in a meeting with me using this link: https://calendly.com/david-lindley-1/30min

And if you disagree (or even agree!) with my point of view above, please feel free to get stuck in on socials 😂

Till next month!