Monday, 10 March 2014

Are Aldi and Lidl an Estate Agents worst Enemy or biggest Ally?



It has been in the news this weekend that Aldi and Lidl have been taking the market share of food shopping and Thursday’s (13th March 2014) announcement should see supermarket giant Morrisons, following the announcement of their falling profits, fighting to bring back their customers.  They will follow the likes of ASDA giving bigger discounts and better offers to try and recover their falling customer base.

This is not the only place where price matters.  It is also a very interesting debate in Estate Agents too.

Quality is clearly not defined by price


Property Services Quality not Quantity
Quality is not defined by price
Aldi have had a big advertising campaign recently which has shown that in independent taste tests they have been coming out on top of the likes of Harrod’s and Fortnum & Mason for quality.  The products from the latter 2 companies cost as much as 8 times more than the former.

Is this fair?  Why are these companies charging so much more for a product that simply isn’t better quality as the price leads you to believe?

Can this be applied to your Estate Agent?  I certainly think so.

What Aldi and Lidl have done is identify what the consumer wants.  They want the same product at a better price. After all why should the consumer line the pockets of the big companies? 

The only real winner in this price war is the consumer. 


In a time where frugality is of necessity, in a time where we have seen the cost of living increase quicker than the take home pay for many, the cost of an Estate Agent has long been perceived as you get what you pay for.  I’m not so sure, that really sticks anymore.  I think Aldi and Lidl have stood this concept on its head and succeeded. 

Prices are an interesting debate among Estate Agents as the price module of the long standing agent comes into question.  The market share of estate agents has long belonged to independents and small chains that set their own prices, are these prices fair?  

Maybe the downshift challenge that Martin Lewis refers to,  for money saving should be applied.  After all, it works when you move to Aldi.
 

(I must point out that there are regional variations that mean overheads are more expensive and price fluctuations cannot be avoided.)

I’m sure the German supermarkets have raised a very valid point about overpaying for a similar and certainly a less superior product.  But how will you feel about Morrisons on Thursday?  Let’s say they do launch a fight back campaign and slash their prices, has their integrity taken a nosedive?  I’m sure if I shopped at Morrisons regularly and then they decided they could afford to drastically slash their prices I would be more than a little irritated.  I mean, have they really been overcharging me for all those products all along? 

Low cost Estate Agents Lancaster 
Who knows.  All I can say is, the more expensive independents may have a fight on their hands if Aldi and Lidl shelve Estate Agent services next to the baked beans.  I’m not worried, I have lower fees and bigger service already. 

Victoria





I'm Victoria and I run an independent Estate Agency that covers Morecambe, Lancaster, Carnforth, Burton in Kendal and Milnthorpe. Our prices are low and our service is high.  We believe in quality over quantity and this shows.  Why not give me a call on 01524 230722 to see what we can do for you.






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