You don’t need to wait until your estate agency’s profits are falling to start implementing high-performance strategies. You can always optimise your results. What techniques can be applied to increase the profitability of an estate agency?
Before making any changes, analyse business expenses, and your profit margin and, once you have your figures clear, apply the following strategies to your agency’s day-to-day operations.
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Implement the following strategies to maximise your profitability: reduce unnecessary costs, use task automation tools, or expand the range of your services.
It is essential that, before implementing any changes, you have analysed your business data.
Calculate how much you spend on renting your office, on materials, staff, marketing etc… Then look at your income over the last 12 months to verify your profit margin.
This way, you can determine which areas you can invest more in to achieve better performance or reduce costs. Can anything be optimised without risking the quality of your service?
Your CRM is the backbone of any estate agency. They will help you improve productivity and, consequently, increase the profitability of the business.
The right CRM can exponentially improve processes, property management, client tracking, and optimise your agency’s internal organisation.
More information: Diversify your income
Posting ads on different portals, document management, sending email campaigns to clients, invoicing… There are many repetitive mini-tasks that you can automate using the right tools, thus avoiding having to invest long hours and reducing some of your business costs.
Analyse which operational tasks you waste the most time on in your day-to-day work and look for alternative formulas that allow you to streamline processes through specialised tools or software.
On the other hand, if the problem is over-subscribing to real estate tools, services or software that you are not actually using or that do not provide much value to you, consider eliminating them from your expense inventory.
Try to regularly review operating costs for subscriptions or services and calculate the return on investment to check if they are fulfilling their function: boosting your figures.
More information: The tools
By diversifying your service offering, you provide a better customer experience, differentiate yourself from the competition, and generate additional income for your business.
To meet your client’s needs and expand your services, consider creating partnerships with other professionals. For example, you can offer professional photography services, virtual tours, financial advice, interior design…
According to Microsoft’s “ Global State of Customer Service ” report, 90% of respondents said that service is essential for repeat business. In fact, 67% think that proactive communications promote brand loyalty.
The property industry is a relationship business, so keeping in touch with your clients will be essential to achieving repeat business and recommendations. Implement referral programs, offer benefits to reward loyalty, share valuable content or offer priority access to new properties to your best clients.
Work on identifying which clients tend to close deals faster or which ones allow you to make the most profits. Prioritise attracting these types of profiles to your agency to make the best use of your time and resources.
Regularly review the prices of your property portfolio and check whether they are competitive, to sell off properties where sales are taking a while.
Advise your seller clients on pricing strategies and educate them on the importance of setting fair and realistic prices.
The iad network of estate agents brings you closer to the profitability you seek for your estate agency business.
Thanks to the range of tools available to you, the possibility of collaborating with other professionals, the attractive commission system and the comprehensive support it provides, you will be able to continue running your own business.
Of course, with minimal investment and with all the guarantees of success both nationally and internationally. Find out how you can join the largest real estate network in Europe.
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