• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar

Inspired Growth Training Knowledge Library

Empower your PM Growth

Inspired Growth Training Facebook     Inspired Growth Training Facebook Messenger      Inspired Growth Training Facebook     Inspired Growth LinkedIn     Inspired Growth YouTube channel
SUBSCRIBE
BECOME A MEMBER
MEMBER LOGIN
  • Home
  • Online
    Training
    • The PM Growth and Performance Webinar Series
    • Grow Influence Dominate
    • BDM Empower- Training Series
    • Rent Roll Growth
    • BDM
    • Prospecting
    • Social Media Marketing
    • Leasing
    • PM Fees
    • PM Nuts & Bolts
  • Upcoming
    Events
    • Grow 100 Plus – One-day Web Event
    • Connect and Grow One-Day Event – Perth, WA
    • The IGT2021 Conference
  • Secret
    Shopper
    • Secret Shopper Files Podcast
    • Secret Shop Your Competitors- Report
    • 80+ Points of Difference
    • Strategic Market Report (Download PDF Outline)
    • Mystery Shop My Business
  • Fees
    • The Profitability Mindshift Podcast
    • 33 PM Owner Fees – PDF Guide
    • Profitability Partnership- Where we ONLY get paid on getting you results!
  • BDM
    • The BDM Coach Podcast Show
    • FREE PM Lead Secrets Book
    • 28 Key BDM Lead Generating Activities- FREE DOWNLOAD
    • The BDM Club
  • Growth
    • Three Best Strategies that GROW 100+ New Door a Month
    • The Property Owner’s Handbook
    • Tenant Handbook
    • The PM Growth Experts Show
    • ‘Win Your PM Fees’ Free PDF Download
    • FREE PM Lead Secrets Book
  • PM
    Power
    • The PM Power Podcast Show
    • PM Power Time Secrets 101 Book
    • 25 Ways to STOP Office Interruptions
    • The Property Owner’s Handbook
    • Tenant Handbook
  • Coaching &
    Team Training
    • The BDM Club
    • Geared For Growth – One Day Event
    • Growth Masterclass- Two Day event
    • Real Estate Groups, In-Office and Online Team Training
    • Team Coaching Packages
    • BDM Coaching
  • Knowledge
    Library
    • Growth
    • Leasing
    • Fees and Profit
    • Quick Video Tips
    • Business Owner and Managers
      • Business Owner Hot Topics
      • Recruitment and Staff Retention
    • Property Managers
      • PM Hot Topics
      • PM Time and Stress Management
      • Tenant Selection and Induction
      • Communication and Conflict
      • Zero Tolerance Rent Control
      • Inspections
      • Repairs and Tradespeople
    • Personal Development
    • Strange and Weird Stuff
      • Photo shock!
      • Weird Stuff
  • Podcasts
    • The PM Power Podcast Show
    • The PM Growth Experts Show Podcast
    • The Secret Shopper Files Podcast
    • The Profitability Mindshift Podcast
    • The BDM Coach Podcast Show
  • Members
    • Member Login
    • IGT Exclusive Members Portal Home
    • Become a Member
    • What kind of training will I get?
    • Call A Coach
    • Help
  • Contact
    • Contact Us
    • Meet the Team
    • Subscribe to IGT Newsletter
    • Call a Coach – IGT Exclusive Members Services
    • Darren Hunter – Director
    • Deniz Yusuf – Director
    • Michael Sanz – Director
    • Supporting Vision Australia
  • Exclusive
    Partners
  • Testimonials
    • Review Us

The Answer to the Fee Problem

There is quite a lot of discussion going on right now suggesting that discounting is causing a crisis in the industry.

How this has happened, is easily understood.

A number of players in every marketplace will use discounting as their main point of difference, forcing down management fees, creating a discounting culture and putting pressure on other agencies to bring down their management fees to compete.

Wherever discounting is reducing revenue, and margins and expenses such as salaries, marketing, insurance and other overheads keep rising, a crisis will always result. Why? The practice is simply unsustainable!

One of the key issues I see is the mindset that most property management revenue reliance needs to be on the management fee as the main ‘breadwinner’, with very little emphasis on other fees.

The question of; ‘but what’s the management fee for?’ is commonplace in the industry, particularly on the east coast in Victoria and Queensland and to a lesser extent in NSW. Conversely; South Australia, Northern Territory and Western Australia seem to all enjoy having several ancillary fees over and above what is charged in the typical fee structure on the east coast.

I feel that if we are to become (and remain) profitable, emphasis must be placed on adding extra ancillary fees. Continuing to hold on to the management fee as the primary breadwinner with little else to support revenue will eventually put you out of business!

You might say, ‘but adding extra fees… won’t our clients choose to go elsewhere?’

My answer is always the same. You need to understand the ‘Law of the Main Game’ in that landlords place an emphasis on the management fee and to a lesser extent the letting fee, but put little to no real focus or emphasis on anything else. Therefore, if you are generally keeping your management fee and letting fee at the market rate, adding other extra fees can be done quite easily, as long as these two factors are in place:

1. You believe (know) that you are worth it!
2. You know how to justify the extra fees.

Mindset rules supreme in this arena, and once you establish that it is possible to increase and add fees, you will be pleased with the results… once you know how!

A healthy profit margin can be generated by adding ancillary fees and has been proven to work time and time again. It’s up to you to believe it will work for you.

“If you say you can, or you say you can’t, this will become true for you!”

 

Filed Under: Boosting Income and Profitability

FOLLOW US

Inspired Growth Training Facebook   Inspired Growth Training Facebook  Inspired Growth LinkedIn  Inspired Growth YouTube channel

SUBSCRIBE
CONTACT US
BECOME A MEMBER

Exclusive Partners

Inspection Manager

Popular Posts

Categories

  • Boosting Income and Profitability
  • Business Owner Hot Topics
  • Communication and Conflict
  • Inspections
  • Just Plain Weird
  • NZ Letting Fee Change
  • Photo shock!
  • PM Coronavirus Crisis Ready
  • PM Growth
  • PM Hot Topics
  • PM Time and Stress Management
  • Principals and Department Managers
  • Property Leasing
  • Recruitment and Staff Retention
  • Repairs and Tradespeople
  • Success and Personal Development
  • Tenant Selection and Induction
  • Zero Tolerance Rent Control

Copyright © 2023 Inspired Growth Training · Privacy Policy · Terms & Conditions · Refunds and Exchange Policy
ABN: 41620846773 P.O. Box 50 Greenwith, South Australia, 5125 (Australia)

3 Best Strategies that grow your property management business each month

×