Finding and Landing Better Clients: Market Positioning

Finding and Landing Better Clients: Market Positioning
by Doug Smith, IFAS

To paraphrase an old wisecrack, "the average appraiser thinks he or she isn't."

With plenty of advance knowledge, as the re-fi boom came to a close, many appraisers assumed immunity to the downturn based on the quality of their work. Slowing business trends are bringing a new reality to the business scene and providing ample evidence that appraisal skill must be matched with marketing savvy to ensure a steady flow of appraisal assignments.
 

Appraisers are learning that when it comes to understanding their market positioning, they may be not much better than "average." 

If appraisers looked realistically at the sources of work in the last few years and developed a simple pie chart, an oversized slice of the pie for most would have been re-finance work, which should have been a warning sign. Every product or service has a life cycle. The incredible crush of re-finance business inflicted a false sense of reality on the appraisal profession. Appraisers are learning the hard lesson that market segments develop and wane over time. Positioning is a strategy to clearly differentiate oneself from the competition and to influence how users of appraisal services view your services.

As you look for new sources of business and new market segments, you must be prepared to undertake marketing strategies that are client driven. Having a clear positioning strategy means focusing on ways to differentiate yourself and meet the challenges of the changing appraisal marketplace.

Creating a Positioning Strategy

To understand market positioning, you need to understand the point of view of your clients. Simply put, positioning is how your target market sees you in relation to the competition.

An advantageous market position is what makes an appraisal firm unique and is considered a benefit to the target audience. Marketing experts talk about market "noise." The objective of positioning is to stand out and have a chance to be seen and heard. Appraisers must understand their product from the point of view of their clients relative to the competition.