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Disruption or Destruction?

Disruption or Destruction?

I don’t think anyone questions that Amazon was predatory. It was clearly their business model from the start, and I don’t think they would deny it. How could they? Their business model was to get large enough to eliminate the competition, and they have for the most part succeeded. The EU is about to charge them with breaking anti-trust laws, and this will be another long-winded costly saga. I use Amazon. A lot. But I still prefer going to the corner store to buy what I’m looking for. I do this not because I want to support small business (although that’s a nice sentiment). I do it because I get better service, and usually find a better product at a better price and have more selection. The Amazon delivery person can’t replace the expert salesperson at the store. There’s no doubt that Amazon has disrupted retail, but it has also helped destroy it. A part of me hopes they have a moment of reckoning and are slapped on the wrist, but we all know that this day probably won’t come. I’m also ashamed to admit it, but I’d miss Amazon. They have spoiled me by taking advantage of my laziness at the expense of the small retailers. The only way these small retailers will come back is by reinventing the retail experience for the consumer and making it better. By giving us a compelling reason to abandon Amazon and go to the store. This is where the opportunity lies and I’m certain we will see it happen. At a very small expense to Amazon.
 
Hertz is bankrupt. I’ve been a Gold Member for years, and it’s been a fine experience, but renting a car from them has pretty much been the same experience for me for the past fifteen years. My name is on the board, I pay a premium for a reliable car, and when I return the car, it’s a quick and easy process. Whenever I’ve found myself in a situation where Hertz is not available, I’ve been pleasantly surprised. Some of the smaller companies I’ve rented from offer a better user experience with helpful staff at a lower rate. Unless Hertz reinvents the way it operates, it will go the way of Chrysler. Change (especially when labeled as disruption) can be a scary thought, but in fear there lies the opportunity.
 
The role of the real estate agent has been the same for as long as I’ve been in the business. With the exception of access to data and speed of communication, very little has changed. Some companies have tried to disrupt the business the same way Amazon disrupted retail by eliminating all the competitors at the expense of the consumer. Disruption in brokerage will happen when the agent innovates the way they conduct their business by providing better service to the consumer. We haven’t seen this yet, but this is where the opportunity lies and I’m certain we will see it happen.

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