When the phone rings or we receive an email from a new owner asking about our property management services, the first question they usually ask is how much do we charge. I’m always puzzled by that. They haven’t told us anything about their property or asked us anything about our services. It seems as though the only thing of importance is the price. This is common, and I wondered why. So, I Googled it. After reading many articles, some dating back decades, I found studies that indicated the reason consumers ask price questions first is because it’s something they’re comfortable asking. They don’t know what questions to ask, so price is their determining factor in a property management service or any other product or service.
Comparing Services and Products and Prices
I needed to buy a gift for my daughter and I knew she wanted a Nike Flex Trainer 6 shoe. So, I Googled that. There were many prices for the exact same shoe made by the same manufacturer – Nike. I started looking at the prices. Obviously, if it’s the exact same product, I want to pay the least amount. But, the prices they showed in the ads were not necessarily the price we would pay. Shipping cost, for example, would add to the overall cost. Some sites had free shipping included in the price. Others had varied prices for their shipping. If there was special shipping required, there was an additional charge. I waited a few days and didn’t place the order in time, so I needed quick deliver to ensure the shoes reached my daughter in time. This eliminated a few companies that could not get it to me fast enough.
I looked at next day delivery to be sure it would get here on time. I compared the prices with the next day delivery cost and came up with an actual purchase price that included delivery. The price isn’t all that matters. The delivered price mattered more. I had to make a decision based on the value of the service that was provided. The value I needed was fast delivery. It turns out the seller who had free delivery was not going to be the best price for me to accomplish my goal. Nor was the most expensive product that was available because that was going to take 14 days to be delivered.
Cheap Service Does Not Always Equal Value
I determined that the cheapest price didn’t determine the value to me. You need to do the same in determining which property management company you’re going to go with. You need to figure out what values that company will provide to you to make them the best property management company to satisfy your needs.
Real estate is a big investment. The importance of value to me in buying the shoes was in getting them to my daughter on time. For you, the importance is who can provide asset protection, maintain the property, and provide a good tenant who will maximize a long term tenancy and minimize your expenses. These are the questions that should be going through your mind.
Warren Buffet said it best: price is what you pay, value is what you receive. Stay tuned for our next blog, which will discuss some of the questions you should ask in digging deep on the value you’re paying for. If you have any questions about property management in Indianapolis, IN, please contact us at Harvey Property Management Group.