Best Practice Q. & A.

How great is the profitability gap between bottom 10% and top 10% agencies?

The operating surplus of Australasian sales departments is bottom ten percent - 1.13%; average - 19.0%; top ten percent - 43.5%.
For property management departments the bottom ten percent - 7.48%;
average - 26.43%; top ten percent - 41.46%.

I have been told Best Practice does not recommend using survey forms to research clients' needs. If this is so, why not?

Well conducted research using survey forms will result in a 30% response rate. This is excellent however, as a general rule, only happy people complete and return survey forms. Top 10% operators want to know the needs and comments of both happy and unhappy past, current and
prospective clients. For this reason most Best Practice research is conducted using the telephone.

How profitable is managing rental property?

Currently throughout Australia and New Zealand the average property management department operating surplus is 26.43%; the bottom 10% averages 7.48%; the top 10% 41.46%

How much commission does a sales agent need to earn to be profitable?

The average commission Australian and New Zealand sales agents need to generate to deliver a 20% sales department surplus is $14,998.00 per month.

 How often should we review our agencies financial performance? 

Best Practice principals have a trading statement placed on their desk by their accountant / book-keeper by the 10th day of every month. The statement details all income, expenses, surplus (deficit) for the previous month and year to date.

The number one reason businesses fail is poor financial management.