"Is Price Just One Factor?"

Many consumers are price shoppers. In fact, many people are sleeve shoppers when picking out the latest fashion to wear. They see something they like. Then they look at the price tag hanging from the sleeve. Then they decide how much they "really" like it after they factor in the price.

Whether we are shopping for insurance, a real estate agent or stockbroker, office supplies, cameras, cars, or anything else, the price is definitely a factor. Brand and store loyalty have taken a backseat to finding the best price for what we want.

Of course, price isn't the only consideration, but it's right in there. Often, it colors or filters the other factors so that we think that price is just one of the considerations when it's really the dominant one.

Sell service and features - and benefits. But be mindful of the price you charge for your products or services. If your fixed costs or overhead need to be adjusted downward, then do it. People notice price!

 


Steve HoffackerCAPS, CEAC, SHSS, is a licensed Certified Aging In Place Specialist - Master Instructor and best-selling author of aging in place books. To learn about this and other programs for aging in place or universal design, visit stevehoffacker.com or call 561-685-5555. Also, check out the "Aging & Accessibility" groups on Facebook and LinkedIn.

Comment balloon 54 commentsSteve Hoffacker • April 19 2014 07:57AM

Comments

Especially true for consumers that have more than average incomes, they tend to look for quality, luxury, etc.

Posted by Catherine Ulrey, Equestrian and Acreage Property Specialist (Keller Williams Capital City) about 5 years ago

Catherine,

While there are many other factors that people consider in making a decision, price is interwoven among them. :)

Steve

Posted by Steve Hoffacker, Certified Aging In Place Specialist-Instructor (Steve Hoffacker LLC) about 5 years ago

I think it's not so much "price" but, rather, "value" that people look for.  Of course, price is a big part of value.

Posted by Tg Glazer - The Right Realtor® for the Right Results!, Westfield/Cranford, NJ area (Coldwell Banker, Westfield, NJ) about 5 years ago

I have to field price shoppers all the time. It's a real balancing act, getting the "value" message across without sounding crabby or rude.

I like to use the haircut analogy... there are plenty of places in Chicago where you can get a haircut for $5. Some places charge $7. Me, I spend $35 on a haircut... and that's nowhere close to what a man can spend in this town.  I found the service and the price point that works for me.

Posted by Tom Jansson, Chicago Area Home Inspector - InterNACHI Certified (Acuity Home Inspections) about 5 years ago

Tg,

What is value but an evaluation of the price? :)

Steve

Posted by Steve Hoffacker, Certified Aging In Place Specialist-Instructor (Steve Hoffacker LLC) about 5 years ago

Tom,

True, other variables that are important to you often offset the price. :)

Steve

Posted by Steve Hoffacker, Certified Aging In Place Specialist-Instructor (Steve Hoffacker LLC) about 5 years ago

Steve, price is a huge factor, and if like me you are the high priced spread, you need to be able to sell the distinctions - and you need to be able to show that your lower priced competition may involved false economies.

Posted by Patricia Kennedy, Home in the Capital (RLAH Real Estate) about 5 years ago

Steve, price is one factor but affordability is another.  What good is it if someone could accept the price for a product but couldn't pay for it?  The result would still be no sale.

Posted by Silvia Dukes PA, Broker Associate, CRS, CIPS, SRES, Florida Waterfront and Country Club Living (Tropic Shores Realty - Ich spreche Deutsch!) about 5 years ago

I agree with the way the world is now it is all about price when comparing apples to apples. If quality is an issue. Sometimes less expensive is better than the high priced spread.

Posted by Bill Reddington, Destin Florida Real Estate (Re/max Southern Realty) about 5 years ago

Price is certainly important, perceived value even more so. 

Posted by Lottie Kendall, Helping make your real estate dreams a reality (Compass) about 5 years ago

One cannot get to the point of considering perceived value unless the property is affordable.

Overpriced listings do not get shown. In most cases we have to sell Buyer's Agents before we can get the showings.

Posted by John Mosier, Prescott's Patriot Agent 928 533-8142 (Realty ONE Group Mountain Desert) about 5 years ago

Price is very important.  Especially when you're on a budget.  Doesn't matter whether you are shopping for a new shirt, pair of slacks, a car or a house.  Price matters.

Posted by Jack O'Neal (HomeSmart Elite Group) about 5 years ago

Pat,

I think that "false economy" part of the equation is valid and powerful. Good luck. :)

Steve

Posted by Steve Hoffacker, Certified Aging In Place Specialist-Instructor (Steve Hoffacker LLC) about 5 years ago

Silvia,

Affordability - especially as it applies to the total cost (taxes, insurance, association. etc.) - is a major factor. :)

Steve

Posted by Steve Hoffacker, Certified Aging In Place Specialist-Instructor (Steve Hoffacker LLC) about 5 years ago

Bill,

Depending on the product and the reason for purchase, quality may not be that important or that discernible across various brands or companies. :)

Steve

Posted by Steve Hoffacker, Certified Aging In Place Specialist-Instructor (Steve Hoffacker LLC) about 5 years ago

Lottie,

Perceived value ties back into price - what is gained for what is paid. :)

Steve

Posted by Steve Hoffacker, Certified Aging In Place Specialist-Instructor (Steve Hoffacker LLC) about 5 years ago

John,

A high price is often hard for a consumer to justify (on any purchase) unless the emotional desire is quite strong. :)

Steve

Posted by Steve Hoffacker, Certified Aging In Place Specialist-Instructor (Steve Hoffacker LLC) about 5 years ago

Jack,

Thank you. At some point in any decision, price does matter - more to some than others. :)

Steve

Posted by Steve Hoffacker, Certified Aging In Place Specialist-Instructor (Steve Hoffacker LLC) about 5 years ago

Some folks focus on price.. however, when one delves deeper, it may be discovered that there are other things that really have priority. It is good to ask some questions. 

Posted by Joan Whitebook, Consumer Focused Real Estate Services (BHG The Masiello Group) about 5 years ago

Steve, unless you have really great sales stats, they aren't going to pay more for you than other agents.

Posted by Evelyn Johnston, The People You Know, Like and Trust! (Friends & Neighbors Real Estate) about 5 years ago

Joan,

Many things are important in a decision, but people don't like to pay than they need to for something. :)

Steve

Posted by Steve Hoffacker, Certified Aging In Place Specialist-Instructor (Steve Hoffacker LLC) about 5 years ago

Evelyn,

Quite true. Also true for similar properties in the same neighborhood. :)

Steve

Posted by Steve Hoffacker, Certified Aging In Place Specialist-Instructor (Steve Hoffacker LLC) about 5 years ago

Price is always a factor Steve! However that the benefits must justify the purchase...

Posted by Paul S. Henderson, REALTOR®, CRS, Tacoma Washington Agent/Broker & Market Authority! (RE/MAX Northwest.) about 5 years ago

That first paragraph describes me to a tee - a habit born from necessity, I guess.

Posted by Jill Sackler, LI South Shore Real Estate - Broker Associate (Charles Rutenberg Realty Inc. 516-575-7500) about 5 years ago

Hi Steve, Value has so many considerations and price is just one of them, howbeit a major one as you have indicated, for sure. Have a great day!

Posted by Les & Sarah Oswald, Broker, Realtor and Investor (Realty One Group) about 5 years ago
I was always taught al long time ago that price is perception.
Posted by Laura Cerrano, Certified Feng Shui Expert, Speaker & Researcher (Feng Shui Manhattan Long Island) about 5 years ago

I remember I watched a documentary about riches of this country and one of the ladies said to a reported when she was shopping at a very expensive boutique: 'if you look at the price you probably can not afford this'. My thought, if a person try to negotiate every penny, it is probably something that he/she needs but can not afford.

Posted by Inna Ivchenko, Realtor® • Green • GRI • HAFA • PSC Calabasas CA (Barcode Properties) about 5 years ago

Well said, Paul. Thank you. :)

Steve

Posted by Steve Hoffacker, Certified Aging In Place Specialist-Instructor (Steve Hoffacker LLC) about 5 years ago

Jill,

That's one reason price tags are sometimes hard to find. :)

Steve

Posted by Steve Hoffacker, Certified Aging In Place Specialist-Instructor (Steve Hoffacker LLC) about 5 years ago

Sarah and Lester,

Thank you. :)

Steve

Posted by Steve Hoffacker, Certified Aging In Place Specialist-Instructor (Steve Hoffacker LLC) about 5 years ago

Laura,

Price definitely affects perception - often pushing us closer to or away from a purchase. :)

Steve

Posted by Steve Hoffacker, Certified Aging In Place Specialist-Instructor (Steve Hoffacker LLC) about 5 years ago

It is interesting to note within my self that if I like something, I then look at pricing

Posted by Richie Alan Naggar, agent & author (people first...then business Ran Right Realty ) about 5 years ago

Inna,

There are so many attitudes about money and spending. :)

Steve

Posted by Steve Hoffacker, Certified Aging In Place Specialist-Instructor (Steve Hoffacker LLC) about 5 years ago

Lowest price but also information right now. Delivery right now in all the colors, with all the bells and whistles. No matter what time of day, your marketing, media streams need to be broadcasting loud and clear to pick up buyers, sellers who tap into the signal. Lowest price is important and why discount happened and taken the shop keeper out of the front and center wearing the apron or service clerk smock... Amazon's are find it, price it, head to the credit card swipe and we're done here people.

Flo on Progressive ads trys to keep it the real live local person, selling you insurance in different size boxes, packages and always in a light, white bright setting with humor. The other bumblers she is kind to in the light blue jackets that shop there too even though insurance salesmen claiming to have it all.  Love the burning pants ad with the lying theme where they claim to have all Flo does but don't for features to serve the public better for their insurance needs.

Posted by Andrew Mooers | 207.532.6573, Northern Maine Real Estate-Aroostook County Broker (MOOERS REALTY) about 5 years ago

Steve-The economic conditions over the past few years have caused many to become more price conscious.

Posted by Wayne Johnson, San Antonio REALTOR, San Antonio Homes For Sale (Coldwell Banker D'Ann Harper REALTORS®) about 5 years ago

Yes, price is usually one of the main considerations in any purchase.

Posted by Kat Palmiotti, The House Kat (Grand Lux Realty, Monroe NY, 914-419-0270, kat@thehousekat.com) about 5 years ago

Richie,

Price is a filter we use in deciding how well we like something. :)

Steve

Posted by Steve Hoffacker, Certified Aging In Place Specialist-Instructor (Steve Hoffacker LLC) about 5 years ago

Andrew,

Thanks. Controlling costs is a major part of the pricing strategy. :)

Steve

Posted by Steve Hoffacker, Certified Aging In Place Specialist-Instructor (Steve Hoffacker LLC) about 5 years ago

Wayne,

Competiton!! :)

Steve

Posted by Steve Hoffacker, Certified Aging In Place Specialist-Instructor (Steve Hoffacker LLC) about 5 years ago

Kat,

Thank you. :)

Steve

Posted by Steve Hoffacker, Certified Aging In Place Specialist-Instructor (Steve Hoffacker LLC) about 5 years ago

While obviously price is important for many reasons, I also think value is huge - I am willing to pay up to X for certain things, but no more than Y if it doesn't have other features. 

Posted by Susan Haughton, Susan & Mindy Team...Honesty. Integrity. Results. (Long and Foster REALTORS (703) 470-4545) about 5 years ago

Steve, it seems to be a common practice for consumers to shop interest rates, insurance policies and real estate agents who are willing to lower their price to beat the competition. Unfortunately, you often get what you pay for in the end.

Posted by Michael Setunsky, Your Commercial Real Estate Link to Northern VA about 5 years ago

Susan,

Value is closely aligned with price - it's what something will do (or what we think it will do) for how much it costs to have it. :)

Steve

Posted by Steve Hoffacker, Certified Aging In Place Specialist-Instructor (Steve Hoffacker LLC) about 5 years ago

Steve

So true price is only one consideration in buying a home.

Good luck and success.

Lou Ludwig

Posted by Lou Ludwig, Designations Earned CRB, CRS, CIPS, GRI, SRES, TRC (Ludwig & Associates) about 5 years ago

Lou,

Appreciate it. Thanks. :)

Steve

Posted by Steve Hoffacker, Certified Aging In Place Specialist-Instructor (Steve Hoffacker LLC) about 5 years ago

Michael,

There are bargains, if you are ready to act when you see them. :)

Steve

Posted by Steve Hoffacker, Certified Aging In Place Specialist-Instructor (Steve Hoffacker LLC) about 5 years ago

Price is about the perception of value. As long as the consumer perceives that the value is there, then the price becomes acceptable.

Posted by Eric Kodner, CRS, Madeline Island Realty, LaPointe, WI 54850 - (Madeline Island Realty) about 5 years ago

Eric,

Price is also about what the consumer can justify or fund. :)

Steve

Posted by Steve Hoffacker, Certified Aging In Place Specialist-Instructor (Steve Hoffacker LLC) about 5 years ago

We can kid ourselves that people see value right away. Fact is, people always put the price in their head first, and realize the value later.

Posted by John Jonas, John Jonas (ReplaceMyself - Virtual Assistants) about 5 years ago

John,

Price is something we can see. Value is something we have to understand. Thanks. :)

Steve

Posted by Steve Hoffacker, Certified Aging In Place Specialist-Instructor (Steve Hoffacker LLC) about 5 years ago

Hi Steve, I was hoping for a few more flower shots, especially with Easter. :

Posted by Laura Cerrano, Certified Feng Shui Expert, Speaker & Researcher (Feng Shui Manhattan Long Island) about 5 years ago

This is a good subject...If I saw a tasty sandwich or meal and wanted it, price doesn't matter...However, as we move up the scale of more expensive items, pricing matters

Posted by Richie Alan Naggar, agent & author (people first...then business Ran Right Realty ) about 5 years ago

Laura,

Thank you. Will get some posted. Had to replace my camera - wore it out (seriously). :)

Steve

Posted by Steve Hoffacker, Certified Aging In Place Specialist-Instructor (Steve Hoffacker LLC) about 5 years ago

Richie,

Thanks for your insights. :)

Steve

Posted by Steve Hoffacker, Certified Aging In Place Specialist-Instructor (Steve Hoffacker LLC) about 5 years ago

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