Commercial real estate has always been better deals compared to residential real estate. The properties exhibit higher cash flow, advantageous economies of scale, and the relatively open market, not to mention cheaper cost on property management services due to the larger supply of commercial property managers. But before you congratulate and pat yourself in the back for making such a pragmatic and profitable decision, you’ll have to learn how to best analyze commercial properties first. Interviewing a large group of experienced and successful commercial property investors, here’s 5 takeaways on how they analyze the market including why you should hire a commercial real estate consulting firm.
Research the Basics
Commercial property research establishes a solid foundation before you take on more complex terms, concepts, and analytical tools. Before researching a commercial property, ask yourself critical questions, such as what kind of property are you looking to invest in, what your risk tolerance is, your competence and/or willingness to assume a landlord/landlady position for the property, and your financial capacity to fund such investment. Research commonly used terms, such as Loan-to-Value ratio, Capitalization Rate, Vacancy Rate, and Ad Valorem.
Think About What the Pros are Thinking
If you want to be a big player in the commercial real estate market someday, you need to learn how the pros think, particularly how they analyze good buys from toxic ones. For instance, understand how professionals undertake commercial property risk management. Income generated by commercial property will depend on the usable square footage, which is simply not the case for residential units. To develop a mindset that is homogeneous to a professional’s way of thinking, read books written by experts, follow them on social media, and attend webinars and in-person conferences.
Ask a Ton of Questions
When you get commercial property consulting, ask all the questions you can think of regardless of how unintelligent it might sound. When choosing a commercial property consulting firm, ask how much experience they have in the niche, what specific commercial properties they specialize in, such as barber shops or convenience stores, and what other services are they prepared to offer aside from initial consultation.
Assemble a Good Team
Commercial real estate consulting professionals aren’t the only ones you should be working with to make the most informed decision possible. There are other experts along the way that you may need to get help from, such as a mortgage broker, lawyer, and commercial broker. A good accountant will also serve as a valuable asset to figuring out business financials, maximum tax benefits and in-depth operating budget analysis.
Focus on a Specific Location
Narrow your search within a specific location, particularly in a neighborhood you are familiar with. While most will argue that such tip would result in limited investment opportunities, experts like the idea of being able to focus your search on a specific location as this leads to better quality analysis of properties. Spreading your time and energy too thinly will only make it more complicated since you end up having too many things to keep track of. The Altus Group website is a good reference if you want to find more information online.
The variety of auto accessories available for today’s new and used cars is immense. From the interior to the exterior, the only limiting factor on how consumers can accessorize their vehicles is their imagination. Everything from style, safety, to performance, connectivity, comfort and anything that you can envisage can be enhanced with accessories.
To an auto dealer, accessories can offer a wide range of benefits—beyond simply revenue. According to auto accessories experts, 4 in 10 buyers are influenced to purchase new and used cars from particular car dealerships simply because accessories were available at the time of purchase.
But is stocking accessories all that you need to grab the slice of the accessories profits pie? Actually, it is not! You need to strategies to thoroughly market them and sell them too.
Make Accessories Sales Part of Your Car Dealership Culture
Have a process in place to show your sales department the best practices when it comes to auto accessories sales—when and how to present auto parts and service that you offer to the customers.
The best time to sell accessories in your dealership is after the customer has committed to making a purchase but is still waiting for clearance from the Finance and insurance department. At this stage, the customer is already excited about the new car and it is the best time to fold in the accessories purchases into the price of the car.
Play with your pricing
Many customers get worried about the price, so endeavor to come up with strategies that can ease their minds. For instance, you can vary duration, purchase price, and monthly payments so that they have the liberty to choose a payment plan that won’t appear to be a big bite out of their budgets.
Just like timing, presentation is very crucial when it comes to selling auto accessories. Don’t just give your customers list of available accessories that you stock and ask them what they may be interested in: strive to show them how the accessories will look in their vehicle. You can also show them an accessorized vehicle that you have in your dealership. Either way will be effective—it all depends on your car dealership style and your customers.
Irrespective of the type of your car dealership—new cars, used cars, or auto parts and service—there are days when you are going to experience a drop in sales. These are the days when service intervals get longer, consumers keep their cars longer (and not replacing them with new ones), and warranty work consume your time and slows you down—all of which implies that you need to find other ways to increase your profits. Auto accessories present the best opportunity to bring back a big chuck of these lost profits. For more information, Windsor Mazda is a helpful website with additional resources.
With a population that is slightly larger than that of New York City, Canadian businesses are much more likely to understand how important it can be to have an international business mindset. Import and export opportunities are so much a part of the landscape in some Canadian cities that they eventually become second nature for business owners, allowing many executives the privilege of knowing customs brokers by their first name.
On the other hand, if you are just getting started, planning to grow through exports is one way that you can diversify and make your business stronger. Here are some popular ways that you can grow your business by exploiting international opportunity:
Focus on the opportunity:
Although there can be a rewarding feeling when you know everything about a process, it is almost always going to serve you better to outsource that process once you understand it. To that end, when it comes to exporting or importing, working with logistics and shipping experts like a customs broker is a good way to save time and money. For you, the value added to your clients probably has more to do with what you are shipping or which services you are providing. By freeing your time to perfect those things, you will come out ahead.
Canada is largely a country of immigrants. That history makes it a great place to work with cultures abroad that have representative populations in your own community. Ideally, you should know a lot about the countries that you do business with. At the same time, even if you do not, chances are it won’t be hard to work with cross-cultural consultants to get up to speed. In addition to language, consultants can ensure that you are aware of how to handle business transactions and etiquette, something that is important if you want to succeed.
One example is when you work with Japanese people. If you receive their business card, do you know what to do with it? To be polite and show them that you understand their culture, it is actually a good idea to receive it with both hands and take a careful look at it, ensuring that you can read the name and the job title and any other details that might be helpful. After several seconds of looking at it, you should probably make a related comment to the person you received the card from.
Of course there is much more that you need to be aware of, like what level of employee should you give your card to when you are visiting a company- or what type of manager you will receive a business card from.
The main thing is knowing that once you can do business as if you are someone from the countries that you want to do business with, whether that means understanding their culture or being able to work with experts like customs brokers, you should make much greater inroads- leading to more revenue and profitability. You may want to visit Orbit Brokers & Forwarders Inc. for more info and insights.
While they seem a minuscule part of the business, a shipping courier is what connects your finished products to its intended consumers. Timely and safe arrival of goods will affect customer satisfaction and B2B partnerships. Unfortunately, shipping merchandise can be one of the most difficult operations for any small business that is bound by limited resources. Weak or no planning can lead to business owners overpaying or getting a poor cost-value trade-off. To add insult to injury, a poor shipping courier service can also lead to volatile sales and low customer retention rates if the company cannot guarantee timely and cost-effective delivery of merchandise to customers.
Customers order stuff at different times of day and night, so your courier should also be available at any time to pick up and deliver the goods. When hiring courier services for your business, make sure the courier can be easily contacted for expedited package deliveries. If they tell you “No” and give you different reasons as to why they couldn’t pick up the phone or drive to your business address to pick up and deliver packages, consider bringing your business to another provider.
Weight and Size Restrictions
Small business shipping needs come in all shapes and sizes, from a 120-lb fridge to a 60-inch flat screen. The orders that go through your business and are in need of delivery to customers must comply with the size and weight capacity of your courier service otherwise they cannot transport it safely and cost-effectively. Of course, this isn’t much of a fuss for law firms sending out packages the size of an A1 envelope, yet is obviously problematic for businesses that deliver furniture and appliances of massive sizes.
Hiring courier services won’t do much good for your sales and revenue if you don’t actually know if the packages do arrive to where they need to go. If it’s a Schrodinger’s cat type of scenario wherein your package may or may not have been delivered, the certainty of which remains unknown until eventually a customer calls to complain, then ask for a proof of delivery or a receipt of some sort. Many courier services also utilize tracking software nowadays to make it easier and more convenient for both the business and their clients to track the whereabouts of the merchandise.
Low Cost, High Value
Because your small business shipping needs will continue on for as long as your company remains operational, your courier services should be tailored to a low-cost, high value pricing model. Avoid solely choosing a courier provider based on the upfront costs as the cheaper ones don’t always mean the most cost-effective service. If you would like to learn more, there are more resources available at Flagship Courier Solutions.
We live in the information age and data can be one of the most important assets we have. In real estate, customer information is the most important data. The best way to put this data to work for your office is with Real Estate CRM. It will increase conversions, keep clients engaged, and get the referrals needed to maximize your marketing budget.
A Better Sales Funnel
Real Estate CRM software is at the heart of any sales funnel. By integrating it through every step of the sales process, potential customers can be more easily converted to customers. A typical real estate sales funnel involves finding prospective customers through marketing efforts. Next, your focus turns to discovering their real estate needs and finding which properties will meet those needs. If the potential customers are not interested in properties on offer, then you will continue trying to find a property that does interest them. Some potential customers may take months or even years to turn into a conversion.
A real estate CRM system matches each step of the sales funnel process. Potential customers are entered into the real estate contact management software. The CRM software allows the different needs and desires of the customer to be entered along with their personal information. Any notes from conversations can also be added. After each property visit, feedback can also be entered into the system.
Keep Potential Customers Engaged
When a potential customer doesn’t find their ideal home right away, there is sometimes a tendency to lose track of them. With each new listing that comes available, you can look into your CRM to see if this property might work for a potential customer that you’ve worked with in the past. The system can also be set up to remind you to contact customers at regular intervals to see how you can put them in their dream home. With the extensive information collected on the customer, it’s easier to make a connection with them even after a break of weeks or even months. Every name in your real estate CRM software is a potential customer.
Referrals from previous customers are one of the most valuable leads in the real estate industry. Real estate contact management software makes it easy to contact customers 3 months, 6 months, and even a year after the sale. It’s a great way to touch base with previous customers and collect referrals. The information in the CRM allows you to make the call personal and lets the customer know that you care.
By better managing your sales funnel, keeping potential customers engaged, and getting more referrals, you can optimize your real estate sales. Real Estate CRM is the tool that can make this happen.