Price and value are not the same of course, as consumers often get much less value with the lowest price (Walmart vs. Nordstrom; Spirit Airlines vs. JetBlue; LegalZoom vs. a seasoned attorney).
Godin’s main point was that companies that compete with price only (instead of with value) are wimps.
This resonated (and even hurt) b/c every mortgage company is being forced to compete with rates these days, even when some of us clearly bring far more “value” to the table.
The value of course includes far more certainty regarding closing dates, immediate appraisal orders, quick response times, better communication, far smoother borrower experiences, and just far better customer service overall.
Despite all that, we now compete with rates and offer some of the lowest rates in the mortgage banking world.
Will we ever offer the rock-bottom lowest rates?
No, b/c the lenders with the lowest rates always have the worst reviews.
Fantastic client experiences (for borrowers and agent-partners alike) will always be our primary goal. I think we are succeeding too, as we received four five-star reviews yesterday alone.
Borrowers who are focused only on lowest rates might want to read Spirit Airline’s Yelp reviews (they are comically awful), along with some of the Yelp reviews for the low-rate lenders of course.
They drive home the point of this blog better than anything else I could say.
Customers unfortunately think “it’s just a plane flight,” or “it’s just a mortgage; what could possibly go wrong?”
Answer: A lot.
Just ask Yelp. :)
Jay Voorhees
Founder/Broker | JVM Lending
(925) 855-4491 | DRE# 01524255, NMLS# 335646
