Rawson Properties expansion into territories north of the Vaal River '“ and into the South Cape and Port Elizabeth areas '“ has quite possibly been the fastest ever witnessed in the SA estate agency world, said Sean McCauley, Rawsons Regional Manager for Gauteng and surrounding areas.
'Two years ago we had not one franchise in Gauteng,' said McCauley, 'now we have 68 run from this office, eight of which are in Free State, Mpumalanga, Limpopo and North West Provinces '“ 60 are in Gauteng'
The total number in the group now stands at 140.
The setting up of the new northern franchises was pioneered by Tony Clarke, formerly a Rawson franchisee at the Cape. He has now taken over as Group MD, leaving McCauley in charge at the Johannesburg (Bryanston) office. (McCauley, too, was a Cape franchisee.)
The fast growth of the Rawson network in the north, says McCauley, can be attributed to four main factors:
1. The 'new blood' factor.
'The province, I believe, was ready for new blood, for a new hungry entrepreneur. We have been told time and again that we are like a breath of fresh air up here'
2. Extensive training.
'It is probably true,' says McCauley, 'that no other franchise offers the same ongoing, intense training. This stems from Bill Rawson who has always insisted that agents must be skilled and empowered, they cannot learn the job simply by doing it'
McCauleys staff has one full time skills developer and one business development manager. They run training courses weekly at their Bryanston training centre and regularly visit all franchisees and their staff for in-house training.
The support staff are available 24/7 on their cell phones to sort out problems.
3. Simple-to-follow computerised administrative systems and documents.
Rawsons provide those who buy a franchise with computer packages which simplify most aspects of their work '“ and the report-backs have the additional advantage of enabling the head office and franchise support team to pick up quickly when things are going wrong.
4. A buy-back guarantee.
Rawsons undertake to buy back any franchise for the price paid for it after two years provided the franchisee has stuck more or less to the specified modus operandi.
Right now, says McCauley, of every 15 people who make contact with a Rawson Franchise Sales Manager, nine will possibly end up as serious contenders '“ and only one will actually be taken on. 'We do not go out and sell franchises,' he said, 'we look for suitable franchisees'
What makes a franchisee suitable? McCauley says some business experience is essential but the key factor is 'an entrepreneurial instinct'. 'The joy of franchising is that you are your own boss. We provide the support '“ but only the franchisee can provide the drive, the desire for success. That is what we look for'
McCauley says that the Rawson 'brand' has caught on fast in Gauteng '“ and one big reason for this is the groups very distinctive logo decorated yellow and black Smart and Toyota Yaris cars. "They stand out wherever they go,' says McCauley, 'and with 160 now in the group we are getting five million kilometres of mobile advertising per annum. They have real impact '“ they present an aggressive but good humoured image'
One of the factors that has made Rawsons strong at the Cape, adds McCauley, has been the sub-division of franchises. A successful franchisee with a large territory will be encouraged to sell off a section '“ or two or three sections '“ to a new franchisee, perhaps also keeping a share of the new franchise. Now this is taking place in Gauteng. Wherever it is done, says McCauley, the market penetration goes up.
'We dont believe in large 'mother-ship' agencies, employing 40 or 50 or more people,' he says. 'We like a knowledgeable, hands-on resident franchisee with a small team, possibly even employing members of his own family. The system suits franchisees because the sale of part of their territory often helps them pay off their franchise purchase fee'
When calculating what fee should be paid for a franchise, Rawsons work on the previous years house sales turnover for the area '“ not, as do some franchises, on the size of the area or the number and value of the houses in it. 'Some areas will always turn over houses fast '“ on average every 18 to 24 months. In other areas the average may be as low as one in every seven years'
The popularity of Rawson franchises, adds McCauley, will be extended by the new National Qualification Framework which aims at increasing the knowledge base and the competency of agents. To pass the 26 modules that will certify the agents and get through the various assessments, training will be necessary '“ and could on the open market cost anything from R10 000 to R50 000.
Rawsons, however, will be able to offer training at much reduced prices because they do not make a profit on this work and they train such large numbers that the unit cost is low. 'The NQF will raise standards,' said McCauley, 'but its expense could also retard transformation. In this industry, Rawsons are working on ways to get round this '“ but in the meantime existing estate agencies are looking to join our group so as to reduce the cost of staff training'
