The Ultimate Money Making Formula for Apartment Sales
Updated: Dec 29, 2019
Are you optimizing your apartment sales?
Has your apartment community been struggling with closing leases? BEFORE you reflexively and recklessly start dumping more money into your already healthy marketing budget, READ THIS ARTICLE FIRST! Perhaps the problem was never a volume issue, but a sales conversion issue.
Consider the following equation:
Volume x Sales Conversion = Outcome
This equation is the fundamental basis of what is affecting your bottom line. Volume represents marketing in its totality and sales conversion represents your overall closing percentage. Yes, this equation can be more elaborate, but if we are talking about the fundamental factors affecting the bigger picture, this equation is more than adequate.
What would be better:
A sales conversion of 10 or 20%? Dumb question, right? Of course you'd take the higher percentage. However, those involved with apartment sales would rather increase their volume (via marketing) and SPEND MORE MONEY MONTHLY THAN figure out a way to INCREASE their SALES CONVERSION FACTOR.
In the above scenario, spending money on making your sales conversions more efficient would be possibly a more cost-effective strategy at increasing your outcome
Have you noticed all of your marketing efforts slipping through the cracks? It seems like you're spending more on marketing lately, and nothing is changing? When this is the case, the answer is NOT to spend more on marketing. Actually, it's time for some re-evaluation.
Here are some tips to maximize on your marketing budget...
Make Sure Your Leasing Staff is Converting
You can spend literally hundreds of thousands of dollars on marketing, but if your leasing staff aren't converting those leads, then what happens? Well, the answer is a depleted marketing budget, and worst of all, no leases. This is every property manager's worst nightmare. To avoid this from happening, make sure that your leasing staff can convert traffic into leases.
Have a System that Works
Having a proven system guarantees that you'll get more leases.
A leasing agent should never be left in the dark when it comes to working traffic. When this happens, so much traffic slips through the cracks. Instead, formulate a system that works for every leasing agent no matter how talented in sales they are. It is important to have a protocol when it comes to scheduling the tour, the tour itself, the close, and the follow up process. If you get sloppy with even one of these parts, then the entire process becomes sloppy. And who wants to count on a sloppy process in order to get leases? Make sure you have a neat and proven system that way you can count on those leases.