D o you remember the days when you wanted to watch a movie , you went to Blockbuster and looked through their shelves for just the right video ? It could take some time because you had to look at all the options . You could even rent more than one . When you found the “ right ” ones , you went to the counter and checked them out for a fee . They gave you a deadline to return them or a late fee would be charged .
I heard people proclaiming that this was one of the most wonderful things to happen to improve our lives . They opened stores all over the country and no one could touch their business model . But along came Netflix in the 1990s . They were worried that they could not compete with Blockbuster . They had a different model , they would mail DVDs to your home . That cost money and they feared they would fail . Netflix tried to convince Blockbuster to find a way to partner with them , but Blockbuster did not understand that there was a disruption force standing in front of them and they declined .
A FATAL MISTAKE
Blockbuster believed they were too big and successful to be disrupted and did not need to make any change in their business model . Within a few years Netflix surpassed Blockbuster . People wanted convenience and Netflix provided that for them . Netflix further developed and modified their process by adding streaming services .
Netflix really came up with a fairly simple way of meeting people ’ s needs . If Blockbuster had visionary leadership , they would have taken the opportunity to buy out Netflix . They had the financial resources to do so , they just lacked forward-thinking people at the helm . The result is that Blockbuster died . The giant had been taken down .
PARALLELS IN REAL ESTATE
I see agents today that have a really great business going , but they operate under the Ostrich Effect : people do not like to hear bad news and they do what they can to avoid it . Many are like Blockbuster : “ I am doing great and I will continue and I really don ’ t care about the Disruptors .” It takes Vision and Awareness of what is going on to make adjustments that are needed to continue being great .
Some people think it was the late fees Blockbuster charged for not returning the videos on time that drove their customers away . I don ’ t think that was what sunk the ship . I think the leadership failed to see the coming changes by letting their pride get in the way .
We all have great business plans that work well , and we take pride in our achievements . And we should . But to let that pride prevent us from keeping up with the trends and the disruptors could be a fatal blow .
Let me be clear : I do not think we have to change to become everything the disruptors are . Many of the real estate disruptors have a model that I do not see myself being a part of . But it does call us to think of the opportunities we can take advantage of . Change is coming , change is here .
Instead of complaining or hiding , we need to look at what we can do to tap into the needs of the consumer in ways that are not being done .
We have a choice : Operate like a Blockbuster or be creative like Netflix . This is a time of great opportunity if we open our eyes and put aside our fear of change .
What opportunities do you see for the real estate business ?
RPCRA . ORG | SEP / OCT 2018 23