Thanks again for the informative reply. I agree on the "feels better helping families" angle. I think of high-end items as helping to subsidize the expected value (so drawing more high end homes means more absolute marketing / advertising dollars, allowing you to be even more competitive at the lower end). NVIDIA's Quadros and Teslas effectively pay for the GeForce price point, and both are required to be successful (GeForce drives volume, otherwise Quadro/Tesla would have to be ridiculously expensive).
I realize now that my assumption is likely wrong: selling lots of expensive homes at a lower commission doesn't generate nearly enough additional revenue. That is, there are only X000 units per year that trade hands at that price point, so unless you get a drastic change in behavior that doesn't move the needle. Interesting challenge!
I realize now that my assumption is likely wrong: selling lots of expensive homes at a lower commission doesn't generate nearly enough additional revenue. That is, there are only X000 units per year that trade hands at that price point, so unless you get a drastic change in behavior that doesn't move the needle. Interesting challenge!