This week Ray White Rural and Ray White Livestock published the third annual edition of the Country Profit Book: a benchmark developed using the true financials of our businesses to determine revenue, expenditure and profit measures for comparison.
The ‘country’ series looks exclusively at our businesses in regional and rural towns across Australia. It was pleasing to see 13 additional offices join profit program, all benefitting from direct insights and advice from our profit team professionals, whilst benchmarking anonymously against peers.
The clarity in decision-making that comes from this work; the growth achieved and cost efficiencies realised, is one of the reasons we invest in financial and profit experts who are at the disposal of our members. The offices that partook in last year’s Country Profit Book have gone on to increase revenue, scaling their business through recruitment activities and in some cases, diversification into an additional region or livestock sales.
The revenue for our owners over the last 12 months is a particularly poignant takeaway from this document, particularly considering many ‘stock and station’ agents in management roles for competitor organisations draw a salary of between $80,000 – $140,000 with limited upside on commissions. Our business owners in the stock and station space generate profitability greater than $350,000. You could say that for many the risk is worth the reward.
Another takeaway has been our country office performance against city counterparts. Excellent profit margins in country offices in a sluggish market in the last year are indicative of the ability of our leaders and their teams to weather market volatility. Country offices achieved higher profit margins thanks to lower overheads and greater principal sale contributions. In short, smart decisions. I attribute this to our principal’s resilient ‘get it done’ attitude.
As in all industries, we have no choice but to be continually looking for ways to grow your margins as we are challenged by suppliers on costs and by our customers to improve our service to justify fees. We must look at all our expense items and ask “what value is this adding to our team and to our customers?” “Is there a more efficient way?” And as we keep asking these questions, our members continue to provide us with creative ideas and suggestions on how to achieve margin growth.
For a copy of the full profit book, speak with your state manager.