Biggin & Scott has revealed “aggressive” expansion moves that include going interstate and snatching market share from rivals.
The Victoria-based franchise has increased its office numbers from 20 to 27 during the past two years, and expects to add another 10 Melbourne offices in the next year, according to sub-franchisor Adam Flynn.
“As it currently stands, we are growing very quickly, with aggressive expansion plans outlined for the next five years,” he told Real Estate Business.
Mr Flynn said the group is in talks with potential franchisees in NSW and Queensland. Interstate expansion could happen as early as 2015, although 2016 is more likely, he added.
“We feel that we’ve got systems and structures and a brand that would work outside the Victorian marketplace,” he said.
“Our systems and structures are replicable, so we believe we can provide real support to any potential franchisee.”
According to Mr Flynn, Biggin & Scott will have to take market share from rivals if the franchise wants to make a success of any new territories.
“We believe that with our model we can enter into various marketplaces and pick up market share from competitors, otherwise we wouldn’t go down that track,” he said.
Biggin & Scott’s expansion over the past two years has helped produce a 23.6 per cent increase in sales and a 40.3 per cent increase in commissions, according to Mr Flynn.
One of the reasons for the growth is that Biggin & Scott has fixed up its previously outdated business practices.
Successful inner-city systems were introduced to the group’s offices in the outer suburbs, Mr Flynn said.
“It was bringing an inner-city way of handling a sales transaction to the outer east, where before it was about putting a board out the front, putting it on realestate.com.au and hoping for the best,” he said.
“Previously, those things were very ad hoc, but now we’re bringing in a very structured and tailored approach to real estate.”
Mr Flynn told Real Estate Business that these more modern ways of doing business tie in with the group’s strategy to become a “franchise of attraction”.
“There are a lot of franchisees we’re speaking to, and they’re at the point where they say they don’t know what to do because the industry has advanced so much that they’re finding that the people from their corporate team don’t know what to do either,” he said.