You are on page 1of 7

ABC REAL ESTATE

PROJECT
NEW MODEL PROPOSAL
SALES TARGET

• Reduce the cost for clients of real estate


from the reduction of abusive and cheating
payments that have been detected in the
industry and that have caused an inflation in
real estate prices.
• A considerable reduction in the cost of this
aspect is planned, it is considered that it is
possible to reduce the expense in a total ten
percent of what the service of the agents
normally costs.
BUSINESS MODEL

• ABC Ltd.'s approach is to maximize its


margins through a flat flight model and
undermine the traditional percentage rate
service currently offered.
• It would sell the houses directly so that
the client / client does not have to pay
the percentage commission that he pays
to agents to buy and sell his houses.
BENEFITS OF THE NEW MODEL

The owners believe that this


business plan would help them:
• Clarify your goals
• Set realistic goals
• Assess your strengths and
weaknesses
COMPETITIVE COST MODEL

Item ABC Estate Traditional real estate


Sale price 400,000 400,000

Agent fee 1,000 10,000


Valuation 0 0
Internet advertising 0 0
Advertising options 500 1200
Legal fees 500 500
Inspections 500 1000

Total agent cost 2,500 12,700


Residual amount for sale 397,500 387,300
BENEFITS FOR PROVIDERS

• The deals become fairer and the


contracts increase due to the
healthier and more beneficial
relationship that is maintained.
BUSINESS EXPANSION STRATEGY

• Growth: developing the business at a challenging and


manageable pace, leading the market with integrity and
reliable advice.
• Increase sales by 10% by the end of this year.
• Reduce staff turnover by 15%
• Implement a new computer system in 80% of the
business.
• Train staff committee members on SSO inquiries
• Sign five clients to a two-year contract

You might also like