Trade Me vs Realestate.co.nz - The Sequel

The www.realestate.co.nz versus Trade Me property blog generated some interest. Great.

I have been asked by industry people what the www.realestate.co.nz view of the blog was. I don’t know, no comments so far.  I am possibly off my Trade Me Property account managers christmas list, but I not sure I have one for www.realestate.co.nz.

I did get a call from Trade Me about the blog post. They were keen to chat and clarify some of the things I said in there and in a previous post about Trade Me Property fees here. The point of the article was to highlight their competitive weaknesses versus www.realestate.co.nz. If I were www.realestate.co.nz I would be screaming negative about the increase, but they seem quiet on it. I was impressed Trade Me read the blog and cared enough to call and talk.

Anyway, my prescription for realestate.co.nz was somewhat radical (it was toned down to be at least considered, if actually read) and I guess we shall see if its technology savvy Board of Directors considers something out of the norm in the future.

The bottom line is Trade Me Property has its foot on the throat of its industry supported competitor. So, as the sequel, here’s my thoughts on how Trade Me Property can deliver that final, killer blow:

When it comes to traffic - Trade Me wins hands down. You want to advertise your property where people hang out. To access people buying homes the website you have to be on is Trade Me.  Even the industry regulator, REAA, whose job it is to educate consumers about using real estate agents advertises on Trade Me not the industry site - ouch!

Keep promoting the fact that you have all listings.

Technological improvement is needed - I pointed that out while highlighting the advantages that www.realestate.co.nz has in the previous blog. Restrictions on the number of photos, words, use of floor plans, and video is out-of-date.  

In some respects mobile is a new battlefield and while Trade Me has the brand recognition, service and capability will win.  Accelerate the focus and development of mobile tools. At the end of the day consumer eyeballs win - if your competition offers better capability you cannot rely on other business areas to give you traffic.

When it comes to real estate agents, focus on the sales people. Forget agency managers, it is the frontline that matters.

The most important thing to salesperson/agent is personal profile. Trade Me has recognised this and will include agent photos at the bottom of each listing soon. But that is sop really. It’s not enough. The competition is www.realestate.co.nz that has agent photos and information right alongside the main pic. Bury them by giving every agent a Trade Me Services profile. Include the link on every advert the agent has. But put the name and pic high on the listing - I know you want to generate revenue by selling advertising revenue tiles under the main photo, but bump them down, reduce the map or whatever to get the agent details higher. Of course once agents and consumers are trained to go to Trade Me Services you can charge for that too!

The cost of each listing is small - just on $183 ($159 plus GST) and the agent will sell that when they benefit. The costs will go up (annual increases from here, right?), but get agents and consumers trained and you can increase a long way before it becomes an issue.

Finally, keep a nice advantage in pricing for the agent - it’s pretty immaterial but at least the agent feels better when is is sub $200 to list on Trade Me with them and close on $400 to do it privately.

The industry site will go on and while the monthly cost is small per office, if all the agent and consumer time and attention is with Trade Me it will continue to atrophy and agency owners will increasingly question spending even that amount.  

Trade Me has its foot on the throat of www.realestate.co.nz, with some extra well placed pressure - asphyxiation.