The Race To The Bottom Is Fast And Painful

race to the bottom

It’s well documented that, within the Property Management industry, we’re in a race to the bottom – it’s painful and people are getting hurt.

Both leaseholders and properties are being mis-managed because there’s this lean towards charging less which, ultimately and undeniably, will lead to poorer service levels across the board.

Who's fuelling the race?

Who’s steering the ship? Who’s leading the race?

I’ve spoken to lots of people about this over the years and, generally speaking, I have found the biggest driving force is that customers simply want to pay less.

How is the service we provide valued by the customer?

In my experience, customers don’t actually value the service we’re providing as much as you might think.

Yes, agents may be undercutting each other to win business but, are they also being driven by their customers’ desire to simply pay less for something?

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Reality Check

Over time, costs increase enormously for:

  • labour
  • materials
  • staffing
  • operations

And yet customers want to pay less and less; I’ve even come across customers who want to pay less for a service they’ve been receiving for five years… how can they expect to pay less for something five years on?

Are we making a scapegoat of agencies?

I don’t think it’s just ‘rogue agents’ pitting against each other that are driving this trend. In fact, I think this rhetoric over ‘rogue’ agents has just got to stop.

Every time an agent makes a mistake we all hear about it. But despite making some mistakes, they’re also making thousands of good decisions day in day out.

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We need more balance in the way our industry tells its’ stories. We’re just a bunch of humans, most of whom are doing their best for their customers every day- we’re not robots.

The real story

We’re all driving the race to the bottom with every price we drop and corner we cut to enable us to reach those new pricing lows.

We should be charging appropriately, providing great service and putting more emphasis on the value of what we do for our clients. 

Prices simply shouldn’t be set by the customer- that is (clearly) a very dangerous game.

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About author: Desmond Moreira

Speaker 🔹Podcaster 🔹Business Owner 🔹Block Management 🔹Social Media Marketing Desmond is the Managing Director of Habitare Block Management and the Co-Founder of Be Original.

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