Every business wants to generate more business of course, and estate agencies are no different. However, in a highly competitive market and with a limited number of instructions, agencies are increasingly having to consider other ways to boost their revenue.
So, how can you increase your agency’s turnover?
Consider your existing revenue streams
Firstly, take a look at how you currently bring income into your business. Do you already offer a full agency service including lettings and management, for example? Property management provides a fairly safe recurring income that can be capitalised upon.
Also look at your sales portfolio. Do you tend to operate at a certain end of the market? Be clear on your value proposition. If you deal with higher end properties, your fees should reflect that. If you operate closer to the lower end of the market, your focus will be on volume. Be clear about your offering in all of your marketing to ensure you attract the right clients.
Reactivate your archive database
When times are good, it’s easy to just focus on new enquiries coming in. That strategy leaves a lot of money on the table when it comes to potential vendors and landlords already in your database, though.
Communicate with those that you have been in touch with over the years. Keep in touch. Let them know you’re still there if they need you. After all, the average person moves house every seven years or so. How old are some of the contacts in your database? There’s real value in there, guaranteed.
Compete on value, not on cost
This can be one of the biggest hurdles for estate agents. Fees are important to vendors and landlords but if you can compete on the value and experience you add, you’ll no longer be in a race to the lowest price.
The truth is that, for many sellers, they care more about reputation and experience than they might realise. Particularly if they have had a bad experience in the past, they will be far more likely to want the reassurance they are using an expert agency.
You’re selling their most valuable asset for them and with a chain likely involved too, paying that bit more should not be a concern. You just need to show why you’re worth that bit more.
This is where your marketing is key to your success. By consistently demonstrating that you have knowledge, expertise and a deep understanding of the local market, you can command higher fees without feeling the need to haggle to win instructions.
Your sales and lettings services aren’t the only way in which to earn an income into your estate agency. Carefully selecting partners to refer to can help to add an extra way of bringing money as well.
Many utility providers and insurance brokers offer partnership schemes whereby you receive a fee or percentage of their income for anyone you refer to them. Examples include Sky, Virgin and HomeLet.
It’s also worth looking at potential partnerships with local companies such as removal firms or interior designers who may be willing to come to an arrangement for referrals with you.
Be selective though, as your partnership choice may well affect the reputation of your business.
By thinking clearly about how you increase revenue, you can make a plan to ensure that your estate agency always thrives, whatever the market conditions.
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