This month Real Estate Business spoke to two agencies from the top end to find out what techniques they use to grow their market share
MARKET LEADER
ELDERS DARWIN
INTERVIEWED: CHRIS DEUTROM
PRINCIPAL: Chris Deutrom
RENT ROLL: 1,481
SHOPFRONT: Yes, we have an exceptional CBD location and having a good shopfront ensures we get between 10 and 15 walk-ins a day.
WHY IS ELDERS DARWIN NUMBER ONE?
Our secret comes down to our business plan. I took over the business 18 months ago and we were number four. Since then, we have sat down as a team and formulated a business plan that is very ambitious and with very different marketing initiatives to anyone else.
WHAT TECHNIQUES DO YOU USE TO ENSURE YOUR MARKET SHARE?
Good strong initiatives, which keep our clients and the general public engaged. We also spend a lot of time on our internet presence. We have upgraded ads on realestate.com.au and
have a very dynamic Facebook page.
WHAT IS ONE THING THAT YOUR OFFICE DOES BETTER THAN YOUR COMPETITORS?
I believe our service is second to none. I think the biggest issue with real estate offices is that the client feels like they can never get in contact with the person in charge. At Elders Darwin I make myself available to every landlord, tenant, buyer and seller, and I will personally deal with any complaints as they come up.
HOW IMPORTANT IS REFERRAL BUSINESS? AND HOW DID YOU BUILD THIS?
Referrals are the lifeline of our business. We have several databases and they are constantly updated and worked. There is a fine line between getting the most out of your database and annoying everyone who is on it. To avoid this, we have a structured plan ensuring all information sent out is topical, interesting and not too frequent.
WHAT KIND OF COMMUNITY INVOLVEMENT DO YOU HAVE?
We are very strong on community involvement. Last year we worked with the Cancer Council, Red Cross, Autism Australia, Breast Cancer Awareness and also gave away over $2,500 in children’s gifts for Target’s Operation Santa.
WHAT KIND OF MEASURE AND GOALS DO HAVE SET IN PLACE TO HOLD YOUR POSITION?
We have a very comprehensive business plan, which we developed at the end of last year and we follow it religiously. I have a copy on my desk at all times and constantly refer to it.
HOW CLOSELY DO YOU MONITOR WHAT YOUR COMPETITORS ARE DOING?
We don’t monitor them at all. When I first started in the office it was all anyone spoke about, but now we have our business plan and direction it doesn’t matter.
WHAT ARE YOUR GOALS FOR THE NEXT YEAR?
To increase revenue by 25 per cent, spend more time and money on staff development and bring at least two ‘never seen before’ marketing initiatives out!
IS IT DIFFICULT TO HIRE STAFF IN A RURAL AREA?
It hasn’t been difficult for us to find new staff because our office culture is such that people want to come and work for us. Every Friday I personally pour all our property managers a glass of champagne to say thank you for the week’s work. I find our best recruitment tool is keeping our current staff happy.
TO GAIN BUSINESS DO YOU DISCOUNT FEES?
Discounting fees does not make up part of our business plan.
THE INDEPENDENT
INTOUCH REALTY
INTERVIEWED: SAM WILKS
PRINCIPAL: Sam Wilks
RENT ROLL: 60
SHOPFRONT: No, my business is a boutique mobile agency with a home office.
WHAT TECHNIQUES DO YOU USE TO ENSURE YOUR MARKET SHARE? I keep in contact with my clients through letterbox drops, referrals and automatic quarterly web appraisals.
WHAT KIND OF MEASURES DO YOU HAVE SET IN PLACE TO INCREASE YOUR POSITION? I plan to add more staff to the business and use third party lead generation.
WHAT IS ONE THING YOUR OFFICE DOES BETTER THAN YOUR COMPETITORS? I focus on personal hands-on service from point A to Z in the property transaction.
HOW CLOSELY DO YOU MONITOR WHAT YOUR COMPETITORS ARE DOING? I used to concentrate on market share, but now I concentrate on market sales share. With over 400 agents in the upper Northern Territory and only 200 transfers per month, I work to obtain between six to eight sales per month. My best month so far has been 16 local sales in January 2012. I tend to keep more eyes on the independent offices rather than the franchises, as they are more dynamic and tend to have greater market share per sales person. They are also more technology savvy.
WHAT ARE YOUR GOALS FOR THE NEXT YEAR? 100 personal sales this year and managing 100 properties personally by the end of the year. And to hire more staff.
IS IT DIFFICULT TO HIRE STAFF IN A RURAL AREA? Extremely. Most agents are used to having several administration staff serving them and so are not interested in working for a boutique business. Younger staff are extremely computer savvy but, in my experience, don’t wish to work the longer non-structured hours and struggle with the lack of consistent income.
HOW FAR DOES THE AREA YOU COVER REACH? My farming area is approximately 45 minutes from the Darwin CBD. We also sell off-the-plan apartments in other states to local investors.
TO GAIN BUSINESS DO YOU DISCOUNT FEES? We don’t have a commercial office lease and I don’t have the costs involved with different departmental staff, so 2.2 per cent commission with free internet marketing is competitive enough. A lot of my competitors do match my fees, but can’t offer the same web coverage or services. My testimonials consistently appreciate that we perform a great service at a reasonable price.
