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The 2016 Major Network of the Year is helping its business owners become more productive with the aid of an exclusive report and team of profit experts.
Ray White’s 2015 Profitability Report breaks down individual offices to identify the most lucrative pockets in a real estate business. The 80-page report aims to give Ray White franchisees greater confidence when making important decisions about the profitability and development of their businesses.
The extensive and detailed report analyses offices by state and size, highlighting the productivity of agents, principals and property management businesses across 190 Ray White businesses.
Ray White director Dan White told Real Estate Business the benefit of the network’s profit team and profit report is identifying how the business is tracking in different areas.
“That way you can really see where your profit is coming from or where it is not coming from,” Mr White said.
“By breaking down your business in more detail through the systems that we have, we can show our business owners exactly where they are making money. Are they making money as a producer, as a salesperson? Are they making money as a leader in terms of building their team? Are they managing their costs and teams well? The key thing for us is to give business owners the simplicity of where they are making money or not making money.”
Ray White has conducted extensive research for the report, including a profit and loss analysis (P&L) for every salesperson and property management business.
“Until you break your business up like that, you don’t really know how you’re going,” Mr White said.
“The profitability report provides a total change of perspective in how they look at their business. Many principals can tell you that their office made $500,000 last year, but few can tell you where they made it. They don’t really understand the key drivers. Our report has changed that. Ray White business owners now know where they are driving profitability.”
Mr White said the award-winning agency, which was crowned Major Network of the Year at this year’s REB Awards, chose not to post a copy of the report to every office.
Instead, principals must make an appointment to meet the Ray White profit team, who go through the report in detail, providing a road map for business owners to drive profitability. The company has a specialised team of profit development executives in every state.
One of the biggest drawcards for agents and principals when joining the network is its four generations of family ownership. Mr White says this critical element was also instrumental in bringing the 2015 Profitability Report to life.
“The consistency of family ownership enables us to have a really long-term view of our business. If we were a listed company or being run by a CEO remunerated on a short-term profit, the profitability report wouldn’t have happened. It is one of those things that you might get paid back over many years,” he said.
“The family element adds value because I think people can relate to that. It allows the business to operate more long term. People in the business understand that. People feel comfortable in a family environment. We have the luxury of the family being responsible for the profitability of the group.”
[Related: Why attitude beats skill in the real estate business]
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