When prospective franchisees consider investing in an estate agency franchise in their area they are often deterred by the fear that it will take them years to establish themselves, to build up a client base and to become widely accepted in the territory they serve, especially if the considered brand is not recognised as being currently effective or present in that particular area.
In reality, says Wayne Albutt, Western Cape Regional Sales Manager for the Rawson Property Group, a really good franchisee can be up and running and doing far more than just recovering his overheads within six months – but on average may take as much as three years to be fully established, highly competitive and possibly the market leader.
“When a new franchisee blames a lack of sales on the fact that he is new to his district, he is, in my experience, often fudging the simple truth that he is not operating as efficiently as he should,” says Albutt.
With property, says Albutt, the consumer is always aware that major cash outlays are necessary and he will therefore be wary about trusting a newcomer. However, he says, all his experience in the Rawson Property Group goes to show that a competent franchisee (and his team) can become widely accepted and recognised in a very short time period. This has been proven in many areas where the Rawson Property Group brand has expanded into new territories within South Africa.
“The three years that we traditionally allocate to a new franchisee to become fully integrated in his area and with his community have in many cases been cut by half, not only because the franchisee is a real performer but also because operating under the banner of a nationally known brand definitely does make the franchisee’s task far easier.”
Currently, says Albutt, the Rawson Property Group is still on an expansion drive throughout South Africa and unfortunately has to turn away a large proportion of potential franchisees because they lack basic requirements as well as legislative ones.
Real estate is a high value asset and, whether the consumer is a seller or buyer, the client will seldom easily and comfortably entrust the agent should they not be backed and represented by an established brand. This fact, fortunate for some and unfortunate for others, is a basic psychological need that requires servicing when dealing with high value commodities. This is yet another fundamental reason why the bigger national real estate brands tend to be more successful, especially when opening their doors in areas where the brand has not operated before.
For further information contact Wayne Albutt on (021) 658 7100.
