Got Gas? I do, no matter how many medications I pour into my tank it's not getting any better.
As business owners we must analyze our expense structure often and make adjustments. In our business we often get chided for making so much money in commission on a sale. What the public doesn't always consider is that the "top line" on revenue is no different for us than it is for the local grocery store. We have all the same expenses as any other business. Just to name a few: marketing, automobile, membership dues, mobile devices, office supplies, brokerage fees and of course GAS. Not to mention taxes.
Gas in our area has gone up in price about 65% ($2.40 to $3.55) since the beginning of the year. It's a good thing we don't count fuel & food prices in the inflation rate isn't it. If we did the headlines couldn't read "Inflation Worries Unfounded." I digress. As business owners we have to adjust to the current situation in some meaningful way. I do not see gas prices falling for the foreseeable future, meaning this year, do you?
What do we do as business owners? Raising revenue is difficult since we must remain competitive. I don't see an ability to raise commissions at this time. So many sellers are already having a hard time getting to the table and leaving with their shirts still on their back. We have to work smarter and look for additional ways to cut expenses. We are not the only ones looking to control our gas expense. Our clients are feeling the pinch too, just ask them. .
My goal starting today is to reduce my gas consumption (gallons) by an amount equal to the rise in price. Some ideas: 1) Trip consolidation. 2) Discussing with clients more thoroughly their criteria for their new home thus reducing trips. 3) Ask sellers to help with maintaining the sign & flier box/fliers. Leaving a supply of fliers with sellers and asking for their help keeping a few in the box as needed. Putting 50 fliers in the box usually leads to about 45 of them getting wet and unusable.
I know this is just a start and maybe even just the obvious items. What have you done to lower expenses? I'd like to hear your ideas so I can implement any that apply. Let's help each other out and work smarter.
Thanks in advance.
Morris "Bill" Austin ~ Team Price Real Estate
Austin TX Metro ~ 512-709-6343 ~ bill@teamprice.com
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