Brokers Corner: 3 Effective Ways To Save Costs
Just like any other business, running a property-brokerage business means you must have profitability. That means your revenues exceeding your costs.
While it is good to keep exploring ways to enhance your brokerage and overall business revenues, what about the other aspect? A penny saved is a penny earned, they say. A large number of property brokers are not able to control their running costs and may even run out of business after a point in time.
Today, we will talk about the costs which add up to your debit account quite significantly. These are generally the costs incurred on sales and marketing. With a slight rejig, you can save chunks of cash which can help you sustain and grow your business in the right direction.
Go with the market trends
Real estate broking requires a deep understanding of how the market is behaving in a certain period. Gone are the days when anyone could become a broker, sell properties and make huge commissions. Nowadays, a property broker has to identify the core opportunities arising out of the economic and business environment and chalk out strategies to make the most of it.
Advertising and marketing is a fundamental need. It has to be in sync with your strategy. You can no longer just stick to conventional marketing tactics like pamphlets, newspaper classifieds, canopies, etc.
If the market for under-construction properties is not looking good, you need to direct your advertising and marketing efforts towards ready-to-move-in and resale properties.
This way, you can cut down your costs incurred towards promoting under-construction properties and divert them towards the other segments. That helps in saving the precious marketing dollars you would have wasted in a slowing market segment.
In order to diversify your portfolio of service offerings and sources of income, you should consider adding up allied solutions such as home-loan-finance assistance, interior decoration, Vastu consultancy, etc.
It is not necessary to hire staff for all the new service. Rather, you can consider tie-ups with the other firms which are specialists in their respective areas. The commissions you get by passing on business leads to these specialists could spike your net profits without much concern on the administrative fronts.
Your cost of acquiring these leads is generally equal to nil and you don't have to incur any further costs in providing the services.
Focus and innovate
In a tough market, your focus and propensity to innovate can change the game for you. You can target on certain segments that have demonstrated a better level of demand and then figure out innovative methods to convert leads into clients.
Property brokers incur quite substantial costs in organising site visits for clients to select projects and explaining the same points over and over again dozens of times a day. Why not call up all the prospective buyers at one place and conduct a brief presentation explaining the salient features of the locality and the project altogether?
You can go a step further and give your clients a digital walkthrough of the property via online video platforms such as Google Hangout. This way, your clients can shortlist properties more easily and then you can go for the site visits for the ones which match your clients' criteria.
In short, you can save huge costs, incurred in showing up irrelevant properties to your clients, by the end of the year.