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Key Numbers, Simple Changes, Big Results Mike Bastian
Key Numbers, Simple Changes, Big Results
Mike Bastian
Mike Bastian
2
Austin, Texas
KW MAPS Leadership Coach
KWU International Master Faculty
Numbers Geek
Key Numbers, Simple Changes, Big Results
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3 Key Numbers, Simple Changes, Big Results
What Are Financials?
Key Numbers, Simple Changes, Big Results4
FinancialsFinancials are a tool to measure:
• Where your money is coming from.
• Where your money is going.
Key Numbers, Simple Changes, Big Results5
So … What Is Money?
Key Numbers, Simple Changes, Big Results6
The Market Center Income Statement
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1. Income
2. Cost of Sales
3. Company Dollar
4. Operation Expenses
5. Other Income
Elements of a Market Center Income Statement:
6. Total KW Approved Costs
7. Profit Share/Franchise Royalty
8. KW Owner Profit (Loss)
9. After PS Expense/Income
Breaking the Numbers Down to the Simple …
• People are not numbers …
• Your numbers ARE your people
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… It’s About Your PEOPLE
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Numbers (Lagging Measures)
Factors (Leading Measures)
People (Who Is Accountable)
Opportunities to Change (Mindset, Skills, and Behaviors)
Where do you find your financials?• KW Intranet
• Go to Reports
• Go to Financials
• Go to Income Statement
• The first page of the Income Statement—the first section
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The Market Center Income Statement
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1. Income
2. Cost of Sales
3. Company Dollar
4. Operation Expenses
5. Other Income
Elements of a Market Center Income Statement:
6. Total KW Approved Costs
7. Profit Share/Franchise Royalty
8. KW Owner Profit (Loss)
9. After PS Expense/Income
Where does income come from?
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Where does income come from?
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Our Agents
Selling Homes
How many buyer and seller sides are there?
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1 Buyer Side 1 Seller Side
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1 Buyer Side 1 Seller Side
What percentage of a sale is that?
50% 50%
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1 Buyer Side 1 Seller Side50% 50%
So what % of the MC’s income comes from listings?
GCI GCI
Percentage of Listing Income
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50% to 55%
When % listing income goes below 45% to 50%...
We start losing Opportunity Income on
the LISTINGS sides
When % listing income goes above 55% to 60% ...
We start losing Opportunity Income on the BUYER sides
Income – Numbers
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Calculate your percentage of listing income.
Math:
Listing Sold Income
÷ Total Income (minus leasing/referrals)
= % Listing Income
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Income – Numbers
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$462,029 divided by$1,361,749 (Listing + Sales)
=
34%
Percentage of Listing Income
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50% to 55%
When % listing income goes below 45% to 50%...
We start losing Opportunity Income on
the LISTINGS sides
When % listing income goes above 55% to 60% ...
We start losing Opportunity Income on the BUYER sides
Income – Numbers
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Example Market Center:
Listing Income: $462,029
Sales Sold: $889,720
Total Income $1,361,749
If this was at 50%, how much would the listing income be?
Income – Numbers
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Example Market Center:
Listing Income: $462,029
Sales Sold: $889,720
Total Income $1,361,749
50% of $1,361,749 = $680,874? No—why not?
Income – Numbers
Key Numbers, Simple Changes, Big Results24
Example Market Center:
Listing Income: $462,029
Sales Sold: $889,720
Total Income $1,361,749
We need to RAISE the listing income, not lower the sales income!
Income – Numbers
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Example Market Center:
Listing Income: $462,029
Sales Sold: $889,720
So how much was our lost opportunity income?
Income – Numbers
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Example Market Center:
Listing Income: $462,029
Sales Sold: $889,720
So how much was our lost opportunity income?
$427,691
Income – Numbers
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How much Company Dollar did the Market Center miss out on?
Ideally about 15% to 20% of GCI convert to Co$
LOI GCI - $427,691 times 15% =
About $64,153 in LOI Co$
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Numbers (Lagging Measures)
Factors (Leading Measures)
People (Who Is Accountable)
Opportunities to Change (Mindset, Skills, and Behaviors)
Income – Factors1. Not enough listings
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Income – Factors1. Not enough listings
2. Not enough of the right types of listings
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Income – Factors1. Not enough listings
2. Not enough of the right types of listings
3. Overpriced listings
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Income – Factors1. Not enough listings
2. Not enough of the right types of listings
3. Overpriced listings
4. Commission cutting or concessions to close
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Income – Factors1. Not enough listings
2. Not enough of the right types of listings
3. Overpriced listings
4. Commission cutting or concessions to close
5. Buyer-side sale anomaly (skews list percentage)
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Income – Factors1. Not enough listings
2. Not enough of the right types of listings
3. Overpriced listings
4. Commission cutting or concessions to close
5. Buyer-side sale anomaly (skews list percentage)
6. Someone else has the listings (recruiting)
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Listings Needed
How many listings does the MC (and our agents) need at all times?
Listings Needed Worksheet
• From BOLD
• From KW MAPS PLAYBOOK for Agents in Productivity Coaching
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Listings Needed
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Numbers (Lagging Measures)
Factors (Leading Measures)
People (Who Is Accountable)
Opportunities to Change (Mindset, Skills, and Behaviors)
Income – Factors1. Not enough listings (Who?)
2. Not enough of the right types of listings (Who?)
3. Overpriced listings (Who?)
4. Commission cutting or concessions to close (Who?)
5. Buyer side sale anomaly (skews list percentage) (Who?)
6. Someone else has the listings (recruiting) (Who?)
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Key Numbers, Simple Changes, Big Results39
Numbers (Lagging Measures)
Factors (Leading Measures)
People (Who Is Accountable)
Opportunities to Change (Mindset, Skills, and Behaviors)
Income – Opportunities to Change
The Team Leader Doctor Exercise
Give the Right People the Right Prescriptions
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Income – Opportunities to Change
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• BOLD
• Win with Sellers
• Delivering Customer Value
• KW Scripts Catalog Volume 2: Working with Sellers
• SHIFT Tactic 7: Seller Pricing Strategies
• SHIFT Tactic 8: Seller Staging Strategies
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Numbers (Lagging Measures)
Factors (Leading Measures)
People (Who Is Accountable)
Opportunities to Change (Mindset, Skills, and Behaviors)
Income – Opportunities to Change
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• BOLD
• Win with Sellers
• Delivering Customer Value
• KW Scripts Catalog Volume 2: Working with Sellers
• SHIFT Tactic 7: Seller Pricing Strategies
• SHIFT Tactic 8: Seller Staging Strategies
What do I do next?
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Look at Your Income Statement – Calculate % of Listing Income• What is your % of listing income?
• Are you losing opportunity on the buyer side or listings side?
• What is your LOI in GCI and in Co$? (share this with your staff and agents)(let them know how much was left on the table)
• What are the Factors behind this?
• Who are the People behind those factors?
• What Change(s) (training /coaching, systems, tools) are needed?
What do I do next?
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• Build your training calendar around the needs of our agents —based on what the numbers and factors are telling you…
• Get the right people into the right training, coaching, systems, and tools.
• Hold them accountable for results.
And go get that lost opportunity income!
For them and for you!
Today we looked at only one element of Market Center financials.
Imagine what you could learn when you attend Market Center Financials and get a KW MAPS Coach!
Austin, Texas – May 19/20
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