Agents need to ensure they link their financial and marketing strategies, heard delegates at the Triton Conference today.
Shai Vyakarnam, founder of Transitions, a business consultancy, said if agents want to spend thousands of pounds on marketing they must work out how many transactions they need to break even.
He said: “If your gross profit margin is 5% and you decide to give a discount to a customer of 1% you need to increase sales by 25% to break even.”
He advised agents against getting involved in the low margin volume business claiming: “This is not the business for you. If you are small you need to offer the high margin stuff.”
He also advised agents to use low cost marketing to raise their profile such as e-newsletters and photo competitions on social networking sites. He also advised them to join their local Chamber of Commerce where they will make contacts with different businesses in the area.
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