As a broker, you're in a brutal arena fighting for listings, referrals, and meetings everyday.
If you're not leveraging a team and proven systems, you're losing to all 5 of the forces competing for your profits.
Force #1 - Powerful Suppliers: Do you use CoStar/LoopNet and advertising platforms? What happens when CoStar and advertising platforms like Google raise their price? When costs go up, your profits go down.
Force #2 - Direct Competitors: Have you ever lost business to another broker? Your strategy has to put you in pole position when prospects are ready to enter a transaction. That means you have to define the “buying criteria,” be in a relationship, and have top-of-mind presence when they’re ready to render a yes. Otherwise, you're losing profits to other brokers.
Force #3 - Powerful Buyers/Sellers: Has a tenant or landlord ever asked you for more value or lower fees? Buyers have options. Powerful buyers leverage those options. When you have to give more or charge less, your profit shrinks.
Force #4 - Indirect Competitors (Alternatives): Do you see tech companies coming in and making leases available for almost instant bookings? Have you seen Zillow making moves to sell houses without agents? Commercial isn’t far behind. Big data is king, and artificial intelligence can be a competitor or a partner.
Force #5 - New Companies: Do you see new brokers coming in and taking their share of the market? There’s a limited amount of profit in your market. New brokers and tech companies are coming in to take their share.
How does your current strategy match up against each of the 5 forces competing for your profits?
In today's data-driven economy, it's time to look at a people-based strategy that leverages technology to improve relationships and enhance the transaction.