There is nothing worse than working day and night to deliver a quality service to your customers only to receive constant push-back over fees that barely cover your overheads.
It is an all-too-common occurrence in the property management industry, and one that stems from a quite simple, yet pervasive problem. Property managers do not typically communicate their value very well.
People only pay for value they perceive. In other words, if a customer cannot see your full value, they are not going to pay you for it. Here’s the problem: Our usual interactions with customers tend to focus on how value is delivered instead of what that value is.
Yes, community managers manage financials, compliance, maintenance, warnings and penalties, clearance certificates, meetings, and reporting. But all community managers offer similar (almost identical) suites of administrative services. That is how you deliver your value, not what your value actually is. Unfortunately, that is often all customers really get to see. As a result, they operate under the mistaken assumption that their property managers are simply administrative assistants with little to set their services apart from the competition, aside from cost.
So, how do you change that perception and remove price as your primary service differentiator? You communicate your value – the what and not the how – in your customer’s own language.
Why do owners buy into a body corporate or HOA? They want to live in a secure and pleasant living space that grows in value. That is where the value of a good property manager lies – not in simply shouldering the administrative burden, but in positioning a property, or community, or portfolio for optimal growth, minimal risk, and maximum ROI.
All the administration, communication, and regulatory hoops that property managers jump through on behalf of their clients are simply the means to that all-important end. Your ability to achieve this end (through your unique combination of professional expertise, comprehensive services, and service quality) is what sets you apart from your competitors. That is your value, and that is your most powerful bargaining chip.
The trick lies in carrying a consistent value proposition through every customer interaction. Each email, phone call, meeting, report etc. is an opportunity to create a “wow” experience that speaks to the value you deliver. A “moment of truth” for your clients to see what they are actually paying for. That means empowering your teams with the right messaging to connect with trustees and owners, across all platforms, touch points and events.
But most importantly, make sure your customers can see the one thing they value above all: how well their community and asset is performing in your capable hands. Communicating this – preferably through regular business reports with tangible feedback on key performance indicators – is the number one way to ensure trustees and owners fully appreciate the extraordinary value you provide.
And, in our experience, when they appreciate that value, they are also very happy to pay you for it.
Written by Danie van der Merwe – Director, WeconnectU
WeconnectU offers an end-to-end Property Management Ecosystem that solves all the major challenges in Property Management. That includes empowering users to communicate their true value to their clients.
Visit www.weconnectu.co.za to find out how WeconnectU can help you end pushback on fees while maximising your compliance, manageability, scalability, and profitability.