Brokerage Models, Consumerism, Management Principles, REALonomics
Moe, Larry & Curly: Nutshell Blog
August 13, 2007 by REALonomics · Leave a Comment
When preparing to present challenging academic material, one of my college professors used to say, “get this in your head and you’ll have it in a nutshell.”
Moe, Larry and Curly are the economic stooges within our industry. In effect, they inhibit development of an owner’s opportunity to reshape his/her company into the competitive force it can become.
During this market down cycle owners have an opportunity to rethink and retool for the 2009 upturn and to once and for all expunge the Stooges from our business models. Each Stooge represents an old line component of our industry and an opportunity for us to seize the moment…this forms three acid tests for owners.
- Acid Test Number One: Revise our Retail Models (bye-bye bricks-n-mortar).
- Acid Test Number Two: Redefine our Markets (leaving micro for macro).
- Acid Test Number Three: Redirect our Methods (consumer obsession).
Acid Test One. We are being challenged to revising our penchant and our historical bias for developing our real estate business models as if they were retail outlets. Bottom line…this is really about the management of fixed-base overhead in favor of new streamlined schema for ROI. Bye, bye bricks-n-mortar! Read the post.
Acid Test Two. Our definition of “market” can change everything for the better. REALonomics firmly believes that real estate markets are being refined before our very eyes. New rules are being written that challenge much of the old assumptions about real estate markets. Are we building more vertical models or, can we move our businesses into the horizontal, fluid markets all around us? This is the focus of assets on the macro market not just the micro market. Read the post.
Acid Test Three. Finally, we must recognize the position and power of the consumer in our business equations. Our methods for interfacing and relating to the consumer are in need of redress. The consumer has his/her/their hand on the joystick of profitability. The methods are being changed from “hard sell” to “soft communication” where the consumer is invited to explore a relationship with markets, agents and brokerage firms in a quest for real estate. Our business models should be completely overwhelmed with consumer obsession. Read the post.
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