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Purplebricks has positioned itself firmly in our industry. Not the most welcome of intruders, I think we all agree.
Having said that though, I don’t think competition necessarily needs to be to our detriment. Any form of disruption makes the industry take a good hard look at itself. Those who are worth their salt will pull up their socks, make some necessary adjustments to their business and thrive, while others will fall victim to the newcomer, cry foul and give up.
I think it’s easy to assume that every disruptor who enters the marketplace will ultimately make our lives harder. I believe this to be only the reality for those who aren’t willing to rise to the challenge and meet the adversary head on by analysing what they truly offer and creating solutions for our own business to make it stronger and lessen the impact of other incoming threats in the future.
Purplebricks might be too attractive to some consumers, but really, who cares what they do? If your business is solid, then disruptors are going to have little impact. If your business is losing traction quickly, the onus is on you to assess where the leaks are and act swiftly to rectify those issues.
Here are four ways to quash the Purplebricks threat:
1. Create new revenue streams
Instead of focusing on cutting costs, which is what most business owners do when the going gets tough, think outside the box and identify how you can create new revenue streams instead. We implemented a service called The Whole House, which is an all-in-one complimentary customer experience service that sources the most competitive deals and organises the client’s utilities, removalists, cleaners and property maintenance during their move. In addition to increasing the level of service we offer our clients, the business model provides three more sources of revenue for our franchisees, increasing their bottom line regardless of new players in the industry.
2. Build rent roll to cover fixed costs
Every business has fixed costs that need to be covered each month. To future-proof your business, it therefore makes sense to build a rent roll that covers the fixed costs of the business, making the majority of your sales revenue profit. It’s also the rent roll that makes your business attractive to potential buyers in the future if you are thinking about selling, so it makes sense to establish a solid foundation early on. Building a rent roll is not a sexy business. It’s hard work, but worthwhile if you want to play the long game.
3. Automate with technology
People these days are incredibly time-poor and are looking for solutions which can save them time. Do so by innovating your business through the use of technology. Make it as easy as possible for people to choose you. There are so many accessible systems these days that there is no excuse not to be up to speed with them. Spend the time investigating the systems and investing in them today to ensure that your clients will want to return tomorrow.
4. Go old-school with service
While automation is essential, the personalised touch is still very much a key factor. People are now spoilt for choice and their expectations are increasing rapidly. They want the old-school service delivered in a digital and automated fashion. Use technology to help deliver a consistent yet personalised service. Send birthday, anniversary and Christmas cards. Hold events for your clients. Find out what interests them about the property market and educate them. Constantly ask for feedback. Listen to what your clients are telling you and implement changes to ensure that their standards are met. Thank them for participating and tell them how you’ve altered your business to reflect the service they are seeking. Bottom line: go above and beyond, consistently.
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