GAP - Barrier or Opportunity?

Q.
GAP between a buyer and a seller remains as challenges in closing a deal. Is it a barrier or an opportunity?

A.
In a normal relationship, GAP is not something that we long for. Generation GAP for example, is an obstacle in a parent-children relationship.

Similarly, when GAP exists between two persons, business is hard to conclude and usually, it ends up as a fell out. Worse case scenario, they could become enemies.

So, in normal circumstances, GAP is a barrier. NOT an opportunity. When there is GAP, there is bad news.

In market place, when a GAP is apparent between a product and its market, it means the marketing unit has a lot more to do. BUT, isn't it the way we face everyday?

Of course, your boss wants to achieve a higher sales target this year. There is a big GAP of expectation! Yet, it is a job which employs you! Without this GAP, you got no job!

So, GAP exists everyday and everywhere, and it is because there is different level of expectations. Hence, there are big GAPs and small GAPs. This GAP exists, and therefore, effort in marketing and sales are to meet this expectations. It thus generates opportunity for employment.

Business Strategy

Business environment never stay still. There are always changes. For example, the dynamics of pricing, competitors and economic conditions. GAPs are everywhere. So, organizations rise and fall, and yet time and tide wait for no man! So, organizations with better tactics and implementation will thrive.

Strength and Weaknesses

Because of these GAPs and the limitation of one person to close all these GAPs, organization develop strategy to cater for the best fit as a TEAM. Therefore, organization studies its strengths and weaknesses They try to combat the GAP expectations by choosing a better battle to fight, saving resources and money. You just cannot win all!

Long term CORE COMPETENCE

In so doing, the organization looks into its core competence. This may be one or two areas where there is better chance to close the GAP. The ability to close the GAPs (into the future) makes the system of the organization successful. This system is in time becomes "Culture" of the organization. The culture can include "Innovation" or "Resilience to failures".

Develop the technique to narrow the GAP

Human cannot keep on battling the odds. That is why we develop machines. As GAPs keep on appearing, we develop computers. Hence, in the game of closing the GAP, better computerization should enhance the ability of human to sustain the winning strategy into the future.

This system, is what is called "strategy" in business or "applications" in information technology or "set of working rules" in the backyard factory. It could deliver the core competence of the organization and takes it into the future. So, that comes with the analysis of competitors and other reasons why the business is not sustainable.

Due to competitors, for example, VCD business.is replaced by internet. It has become a thing of the past as people move on to subscribing Internet TV through UNIFI.

So, in Estate Agency, agents survive because of the GAP. Agents sell expertise in bridging the GAP. Yet, to sustain this strategy of "middle man", you need to ensure you can offer the value over a longer period of time versus your competitors.

Scenario

Seller's agent - Increase value of seller's property. Buyers would be willing to part with their money to buy property of Seller because you show Value of the property to the Buyer. You closed the GAP.

Sustaining the Value Proposition

Estate agent delivers comparison of properties so that Buyer has knowledge of the benefit in acquiring the property. Estate Agent explains about capital gain and rental yield. This knowledge must be able to sustain into the future. Thus, the competitor will not match the knowledge (Value) perceived to benefit the Buyer. When another platform is able to offer that value to the buyer directly (e.g. Internet database like Brickz), then the GAP is narrowed. There is no point a Buyer were to look for an Estate Agent to meet up with the Seller. The buyer can narrow the GAP himself. In this case, by Googling in the Internet!

However, amidst all these, selling a property is much much better than say, selling a hand phone.

People could learn about almost anything and everything about a brand of hand phone by Google. The buyer can just go online to buy the cheapest hand phone of that particular brand and model. The information is not a barrier in this case. It is a perfect competition - you get information about hand phone to almost 100% accuracy by Googling. In fact, you would know more in learning via Google than speaking to the salesperson of the hand phone store!

However, real estate market is not in perfect competition. Nobody can be certain about value of a property and its potentials, or worse, its pitfalls. There is no two property exactly the same. So, there is always a GAP between a Seller and a Buyer. The Seller would want his property best you can think of. And, the Buyer would be worried that if it is over priced or worse, is it even a scam???

To be able to offer VALUE INFORMATION, you will be better of than the another agent in the market. In this way, you will then be able to protect your business over a longer period of time.

It is indeed, the ART of showing off your VALUE INFORMATION.

Then, what is VALUE INFORMATION??? Read further here on Data - Gap - Value Information.