In real estate we’re fixated on searching for the next new thing.
In fact, looking for the next solution or product that will transform our business is practically built into our DNA.
But the thing that makes us is also the thing that can break us.
Over the past five years our industry has transitioned from a corner store-style, relationship business, to a mature and highly strategic landscape where relationships have evolved from who knows you, to what people know of you.
So why has this evolution taken place?
There are a couple of reasons:
An influx of information
Our customer has access to an unprecedented amount of information.
Through social media and online, our customer determines their view of us, before we even step through the door. Real estate is a full-time gig. We are held to a higher standard and you can’t just turn up from 9am to 5pm.
Now, more than ever, you must be 100 per cent committed to your craft, because you are always on show.
The age of impatience
We live in a world of ‘I want it now’ and this demand is fuelled by service industries whose sole focus is speed and efficiency.
A great example is ordering takeaway. You get a time frame for when to expect your dinner, but if that time frame is adjusted – maybe it blows out by 20 minutes, it feels like the end of the world.
These cross-service expectations are being given to customers, and they begin to play out in other service industries where time is also of the essence.
Customers have started to evaluate us on how quickly we respond, and how fast we can get them what they want.
So, with this shift in service and relationships, how do we meet our customers’ needs and in doing so, ensure success in our business?
There has been a lot of talk about leads.
How to identify them and what piece of technology we can use to make the whole process of fostering relationships easier.
While the technology that enables lead generation is impressive – and has the potential to establish great opportunities for a business – relying on technology as a fix-all feels like we’re mirroring the customer behaviour ourselves.
Demanding instant success, rather than working for a solution.
Instead of looking for a quick fix, I believe our success comes from visibility.
You cannot improve or maintain the success of your business without 100 per cent visibility, and that means truly understanding performance.
Where are the gaps in your business?
What are the trends?
Are there areas for growth?
As an agent, do you know what your strike rate is in a listing presentation?
As a business owner, do you know what your break even is each month?
Out of the thousands of contacts you hold in your database, what is your conversion ratio from contact to client each year?
Instead of searching, demanding and waiting for more, ask the hard questions now.
There is opportunity to improve and grow your business from inside it.
Take the time to understand your performance because when you do, you will quickly realise what is good business and what is not.
You will see the immense opportunity every agent and business holds within.
Top tips for getting visibility over your business:
• Enter all client information in your CRM (and every presentation is also marked and set with a task).
• To quote Belle Property Parramatta’s Ben Sahyoun, each day is a “work to zero” day. Every task is actioned when it is set to. Never leave a day with a task outstanding.
• As an agent or business owner, be clear on what it costs to do business. Every deal costs something to get. What is your investment and what do you require to break-even?
How to calculate your break-even for a business:
To work out your break-even as a business, it is your PM revenue minus all monthly costs = $+/- position. You would then translate your average commission fee, less cost of sale (agent’s commission).
PM revenue: $40,000 per month
All costs: $50,000 per month
-$ 10,000 per month starting position each month
Average commission fee to business, less cost of sale = $5,000. Therefore, your business needs to sell two properties every month to break-even before you realise any profit.