The value/quality/price formula
Value is the relationship between the quality of service and the price. One way to increase value is to reduce the price. An alternative strategy to increase value is by increasing quality. Yet quality—related to service in the real estate industry—is just a word.
For the consumer, price becomes more measurable, more meaningful, and more certain. Homebuyers and sellers have more confidence and certainty in pursuing price as the pathway to value than the vagaries of quality. The result is the continuing erosion of fees as a percentage of sales prices. For many practitioners, aggressive pricing (discounting) is a dominant or primary strategy for competitive advantage and market share.
