The discount brokers give the perception they provide the same service. One such discount broker uses the tagline "Full service for less."  It is NOT full service.  You need to make them understand the difference. 

A Kia and a Lexus are both vehicles that will get you from where you are to where you want to go.  Neither is better or worse than the other.  It just depends on what the consumer is looking for and how much they are willing to pay for the comfort, convenience and image they wish to portray. 

It's rare that it comes up. I let them know what I provide them, but also the experience and knowledge I bring to the transaction. If they want discounted services they can call a discount brokerage.

when they ask the team members if they will reduce their commission, the answer is NO.... it's simple...if they continue to attempt to negotiate, our answer is to seek out the service of a discount agent/broker and tread water.... and we will sit again after the listing expires.... it's not a personal thing, it's good business sense to earn what you're worth..

we get the listing....always....always....always....

At the end of my career I was only listing with Builder/Developers and they typically did ask for (and received) a 1% discount of me Thomas J. Nelson, Realtor, ePRO, CRS, RCS-D It was always worth it to me as they provided a wonderful work space for me and endless inventory. As far as single family listings I did not give a discount, I simply did not need their business so I could have cared less if they signed with me or not.

A hot topic for certain.  We do get what we pay for. Some folks just want it all and do not want to pay anything! Some people actually expect others to work for them for "free".  Shocking, I know. But it is true! 

There is a sense of entitlement with some people ... those are not my people.  

No, next question

Thomas,

I agree with Barbara Todaro .  We never discounted our commissions.  If they wanted that type of service, we moved on.  In the worst of times, we asked for a higher commission, so that we could give the cooperation broker a higher split to bring their clients to our listing.  Have you every seen Tiffany's discount their products?

In our area we have one only with % from seller. I don't see they have many listings. 

We know this game - discount brokerages are for the sellers who think they are Realtors without license - they know everything...

I make sure that they know the difference and make sure that they really want a professional rather than a clerk.

Carol Williams has a really good answer. What are you actually getting with a discount broker? Any service at all? Professional photos? Professional marketing? Professional service? You get what you pay for.

I never discuss commissions before reviewing my services thoroughly. People get the value I bring to the table. And if they don't, tant pis... as the French would say. (At the end of the day, it's my job to make certain they understand we are not providing the same services.)

People who base it all on money outcomes leave themselves open for a few surprises. Another problem? Their mind is set a danger to anyone who doesn't remain open to change, growth and grace. When someone comes at an agent with a "how come" money scenario, it puts one on the defensive (not good) automatically. What then? I finish what I start and when things get rough, I am paid to see it through. Mess with that and the seller self-sabotages. Places that discount wash their hands of any problems for the obvious denial i.e. I am not getting paid for this only to sell the product. On something as big as a lifetime purchase...PAY FOR GOOD HELP or pay for not having it!....

I tell them why they should pay more, they are paying for my service and expertise. If they want discount they can take there business there. You get what you pay for as with anything in life.

I rarely get that but, when I do, I ask them which of my services they would like eliminated - as the discount broker doesn't do A FOURTH of the marketing that I do...nor can they negotiate a better price as well as I can!

Good luck, Thomas!

There's a simple formula to follow: SP/LP, sale price divided by list price means many things to many people. To a Seller it should indicate the effort one makes to provide the highest return for their client based on ALL previous listings they've had the pleasure of closing. A seasoned full service agent should know this number off the top of their head without hesitation. Wheras, the "discount" broker may not know or worse yet take its value with a grain of salt. Comingled with the Days On Market stats and you'll have a formidable retort. Facts are often pesky!

"you get what you pay for"... in  so many words

Do what is best for your business.

I try to determine how important this is to the Seller

We discuss our experience, our success, our value-added features and decline to take less than we expect to be paid.

   This is what I charge; this is what you will receive.  Sign here and let's sell this house.

Ditto, Carol Williams answer.

They charge what they charge for what they do and the value they place upoon it. So do I and superior service  seems to cost more upfront and less in the long run. Next question!

When people ask for a reduction?

An agent should assume this will come up. 

If it does, the agent should KNOW they did not answer the sellers REAL questions. 

Assuage their real concerns and what you will hear is, "I want you to know we want you to help us sell our house. But, I feel I really must ask what your fees are simply to do my work."

When the agents SEE they have been reduced to a price competitor they must accept they did not demonstrate their real value.

REAL VALUE does not exist in the 'Success Theater," "Vanity Metrics," and "Surrogate Endpoints" that is the currency of real estate agents.

Agents must challenge themselves to know the five questions, and there are only five questions, that every sellers needs answered.

Does this qualify as a 'Non-answer'? 

I talk about generic foods, usually brings them to reality

The sellers should make up their mind based on what service they need.

Just prove to them that you have a better track record then the discount people.  You pay for what you get.

A simple no works for me.

You do not. No ~is a full sentence.

Thomas J. Nelson, Realtor, ePRO, CRS, RCS-D - we know (and I think Brian shared this quote) -

Price is Only an Issue in the Absence of Value

Basically I explain what I do for my fee and where the money goes.  But it's not a common request

I start my presentations with all the duties I provide without fail, and have not had an objection to commission in a very long time.

I do not discount my service but am seeing many who want to make sure they have the best deal and I have let them go. That is not who I am or what I do. It's rare that it comes up but I am starting to see it more.

I explain the difference between a discount broker and me.  If they don't see the difference, then I walk.