Quote:
Originally Posted by 1insider
Referencing underestimating changing business trends by using the well-known Walmart example. Seems pretty relevant to me. I imagine both of us will continue to succeed in real estate in our respective markets Zillow or not. Not trying to argue. I think discussing the future of our business and the changes the big new players are bringing can be productive.
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It is so very easy for a Mom and Pop to outperform and out-service Z at much lower cost, the comparison of Walmart to hard line retail Mom and Pops who absolutely cannot compete with WMT's economies of scale and brand penetration in selling outright price-based commodities is rendered irrelevant in the conversation.
Real estate brokerage is an obscenely cheap business to start and to own and operate. Fixed costs are nearly imperceptible. Costs to add value over basics are very low. Financial reward vs. risk for offering excellent service (ignoring liability for the moment) is huge.
Now, Ego Brokerage Expenses? Yep. That is why some people pay 6 and 7% fees, paperwork fees, fees to dissolve listing agreements, to have pointless marketing, etc. Tinkling away money without adding value is a basic business sin for a brokerage and a financial trap for the consumer. And a smart independent broker has utmost control over unnecessary ancillary costs, with all the opportunity in the world to be more meaningful to the average consumer than Z will ever be.
Z does not affect my income.