1 / 47

Market Center Financials

Market Center Financials. Achieve Financial Success by Helping Others Achieve Theirs. Mike Bastian. Mike Bastian. Austin, TX KW MAPS Leadership Coach KWU International Master Faculty Numbers Geek. Please complete an evaluation form found in the back of your program guide .

lucie
Download Presentation

Market Center Financials

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Market Center Financials Achieve Financial Success by Helping Others Achieve Theirs Mike Bastian

  2. Mike Bastian Austin, TX KW MAPS Leadership Coach KWU International Master Faculty Numbers Geek Market Center Financials

  3. Please complete an evaluation formfound in the back of your program guide. Market Center Financials

  4. What Are Financials? Market Center Financials

  5. Financials Financials are a tool to measure: • Where your money is coming from. • Where your money is going. Market Center Financials

  6. So … What Is Money? Market Center Financials

  7. The Market Center Income Statement • Income • Cost of Sales • Company Dollar • Operation Expenses • Other Income Elements of a Market Center Income Statement: • Total KW Approved Costs • Profit Share/Franchise Royalty • KW Owner Profit (Loss) • After PS Expense/Income Market Center Financials

  8. Breaking the Numbers Down to the Simple … • People are not numbers … • Your numbers ARE your people … It’s about your PEOPLE Market Center Financials

  9. Numbers (Lagging Measures)Factors (Leading Measures)People (Who Is Accountable)Opportunities to Change (Mindset, Skills, and Behaviors) Market Center Financials

  10. Where do you find your financials? • KW Intranet • Go to Reports • Go to Financials • Go to Income Statement • The first page of the Income Statement—the first section Market Center Financials

  11. The Market Center Income Statement • Income • Cost of Sales • Company Dollar • Operation Expenses • Other Income Elements of a Market Center Income Statement: • Total KW Approved Costs • Profit Share/Franchise Royalty • KW Owner Profit (Loss) • After PS Expense/Income Market Center Financials

  12. Where does income come from? Market Center Financials

  13. Where does income come from? Our Agents Selling Homes Market Center Financials

  14. How many buyer and seller sides are there? 1 Buyer Side 1 Seller Side Market Center Financials

  15. What percentage of a sale is that? 50% 50% 1 Buyer Side 1 Seller Side Market Center Financials

  16. So what % of the MC’s income comes from listings? 50% 50% 1 Buyer Side 1 Seller Side GCI GCI Market Center Financials

  17. Percentage of Listing Income 50% to 55% When % listing income goes below 45% to 50%... We start losing Opportunity Income on the LISTINGSsides When % listing income goes above 55% to 60% ... We start losing Opportunity Income on the BUYERsides Market Center Financials

  18. Income – Numbers Calculate your percentage of listing income. Math: Listing Sold Income ÷ Total Income (minus leasing/referrals) = % Listing Income Market Center Financials

  19. Market Center Financials

  20. Income – Numbers $462,029 divided by $1,361,749 (Listing + Sales) = 34% Market Center Financials

  21. Percentage of Listing Income 50% to 55% When % listing income goes below 45% to 50%... We start losing Opportunity Income on the LISTINGSsides When % listing income goes above 55% to 60% ... We start losing Opportunity Income on the BUYERsides Market Center Financials

  22. Income – Numbers Example Market Center: Listing Income:$462,029 Sales Sold: $889,720 Total Income $1,361,749 If this was at 50%, how much would the listing income be? Market Center Financials

  23. Income – Numbers Example Market Center: Listing Income:$462,029 Sales Sold: $889,720 Total Income $1,361,749 50% of $1,361,749 = $680,874? No—Why Not? Market Center Financials

  24. Income – Numbers Example Market Center: Listing Income:$462,029 Sales Sold: $889,720 Total Income $1,361,749 We need to RAISE the listing income, not lower the sales income! Market Center Financials

  25. Income – Numbers Example Market Center: Listing Income:$462,029 Sales Sold: $889,720 So how much was our lost opportunity income? Market Center Financials

  26. Income – Numbers Example Market Center: Listing Income:$462,029 Sales Sold: $889,720 So how much was our lost opportunity income? $427,691 Market Center Financials

  27. Income – Numbers How much Company Dollar did the Market Center miss out on? Ideally about 15% to 20% of GCI convert to Co$ LOI GCI - $427,691 times 15% = About $64,153 in LOI Co$ Market Center Financials

  28. Numbers (Lagging Measures)Factors (Leading Measures)People (Who Is Accountable)Opportunities to Change (Mindset, Skills, and Behaviors) Market Center Financials

  29. Income – Factors • Not enough listings Market Center Financials

  30. Income – Factors • Not enough listings • Not enough of the right types of listings Market Center Financials

  31. Income – Factors • Not enough listings • Not enough of the right types of listings • Overpriced listings Market Center Financials

  32. Income – Factors • Not enough listings • Not enough of the right types of listings • Overpriced listings • Commission cutting or concessions to close Market Center Financials

  33. Income – Factors • Not enough listings • Not enough of the right types of listings • Overpriced listings • Commission cutting or concessions to close • Buyer side sale anomaly (skews list percentage) Market Center Financials

  34. Income – Factors • Not enough listings • Not enough of the right types of listings • Overpriced listings • Commission cutting or concessions to close • Buyer side sale anomaly (skews list percentage) • Someone else has the listings (recruiting) Market Center Financials

  35. Listings Needed How many listings does the MC (and our agents) need at all times? Listings Needed Worksheet • From BOLD • From KW MAPS PLAYBOOK for Agents in Productivity Coaching Market Center Financials

  36. Listings Needed Market Center Financials

  37. Numbers (Lagging Measures)Factors (Leading Measures)People (Who Is Accountable)Opportunities to Change (Mindset, Skills, and Behaviors) Market Center Financials

  38. Income – Factors • Not enough listings (Who?) • Not enough of the right types of listings (Who?) • Overpriced listings (Who?) • Commission cutting or concessions to close (Who?) • Buyer side sale anomaly (skews list percentage) (Who?) • Someone else has the listings (recruiting) (Who?) Market Center Financials

  39. Numbers (Lagging Measures)Factors (Leading Measures)People (Who Is Accountable)Opportunities to Change (Mindset, Skills, and Behaviors) Market Center Financials

  40. Income – Opportunities to Change The Team Leader Doctor Exercise Give the right People the Right Prescriptions Market Center Financials

  41. Income – Opportunities to Change • BOLD • Seller Mastery • Delivering Customer Value • KW Scripts Catalog Volume 2: Working with Sellers • SHIFT Tactic 7: Seller Pricing Strategies • SHIFT Tactic 8: Seller Staging Strategies Market Center Financials

  42. Numbers (Lagging Measures)Factors (Leading Measures)People (Who Is Accountable)Opportunities to Change (Mindset, Skills, and Behaviors) Market Center Financials

  43. Income – Opportunities to Change • BOLD • Seller Mastery • Delivering Customer Value • KW Scripts Catalog Volume 2: Working with Sellers • SHIFT Tactic 7: Seller Pricing Strategies • SHIFT Tactic 8: Seller Staging Strategies Market Center Financials

  44. What do I do next? Look at Your Income Statement – Calculate % of Listing Income • What is your % of listing income? • Are you losing opportunity on the buyer side or listings side • What is your LOI in GCI and in Co$? (share this with your staff and agents)(let them know how much was left on the table) • What are the Factors behind this • Who are the People behind those factors • What Change(s) – (training /coaching, systems, tools) are needed? Market Center Financials

  45. What do I do next? • Build your training calendar around the needs of our agents —based on what the numbers and factors are telling you… • Get the right people into the right training, coaching, systems and tools. • Hold them accountable for results. And go get that lost opportunity income! For them and for you! Market Center Financials

  46. Today we looked at only one element of Market Center financials.Imagine what you could learn when you attend Market Center Financials and get a KW MAPS Coach!Austin, TX – August 25/26 Market Center Financials

  47. Thank You! Please complete an evaluation form found in the back of your program guide. To download a free copy of this presentation, GO TO: www.familyreunion.kw.com/downloads

More Related