Break Even EARLY

How much focus do you give your Break Even Point (BEP)? How many sales does your office need to break even each month? This is a figure you MUST know. Once you know your BEP you can focus on:

  1. Reducing it – get your BEP as low as possible;
  2. Reaching it – by the 7th of each month. Break even early.

Some leaders say, “I can’t manage to break even by the 20th, let alone the 7th“, and they are right. This mission is doomed before it starts. It begins the moment they utter those fatal words, “I can’t…

Many years ago we used to say that office’s should break even by the 20th of the month. We changed it to the 7th. At the time there were very few offices regularly breaking even by the 7th. Those leaders who succeeded at regularly breaking even by the new day did so because they had a leader’s mindset: they focused on breaking even sooner rather than later.

When the ‘goal posts’ were moved, winning leaders, who were already in the habit (and it is a habit) of breaking even by the 20th, reviewed their plans. If it took x amount of effort to reach BEP by the 20th, then 2.5 times the effort gets them to BEP by the 7th.

Winning leaders increased their effort
in the first seven days
.

These leaders follow a plan. For them, BEP doesn’t just happen; it is a mission, an expectation. They reach BEP every month because they do the actions that make BEP a certainty.

  1. They fully expect to reach BEP. For these leaders, there is no, “Wouldn’t it be nice to reach BEP!“. They focus on BEP by the 7th and achieve it.
  2. They examine the sales their salespeople have ‘cooking’ as the current month comes to a close. If the ‘cookings’ are low, this greatly diminishes the chance of reaching BEP by the 7th of the new month.If you want to reach BEP by the 7th, most of those sales are going to come from last month’s cooking sales, and not from fresh sales. A general rule-of-thumb is to have twice your BEP in cooking sales by the 28th. From those ‘cookings’ will come the sales that should take you to BEP by the 7th of the new month. If winning leaders don’t see enough ‘cookings’, they create more. They put the focus on Substantial Price Reductions. They get their team members to visit their sellers and obtain price reductions.
  3. They ‘repair’ struggling salespeople. Any team member who struggled the previous month and fell behind target cannot be allowed to do it two months in a row. Winning leaders take remedial action early. It may be time to insist that strugglers follow a plan for the coming month. Winning Ways – Your Path To Mastery contains two plans: the Peak Performance Plan and the Win for Life Plan. Assuming knowledge levels are satisfactory, any struggler will succeed if they follow a winning plan.
  4. They increase the office’s marketing for new listings AND they monitor salespeople’s personal prospecting levels. You know that if you get your team to reduce stock prices and set buyer appointments, you will make sales. Making sales depletes stock. Winning leaders ensure plenty of seller presentations are taking place so that sold stock will be replaced – long before an emergency occurs.

Sooner, not later

Winning leaders look to next month’s BEP toward the end of the current month. They know that if they want to ‘hit the ground running’ next month, they need to have plenty of cooking sales left over at the end of each month. They also need a constant flow of incoming listings and regular Substantial Price Reductions being obtained by the team.

With this combination in place, the salespeople need only set appointments with qualified buyers and sales are assured.

Breaking even by the 7th of each month is like breaking even in April and having the rest of the year as profit. Too many leaders pay too little attention to their Break Even Points.

The first step toward profit is to break even.

The earlier the better.

Recent Articles

Essential Actions

If you want to get your new sales recruits off to a flying start, first teach them the essential actions - those neces...

The Right Amount Of Pressure

There is a difference between threatening team members with dismissal for poor performance and applying positive pressure to perform. In this short ...

Hold Yourself Accountable

In an age where people can be quick to assert their rights but slow to live up to their responsibilities, we at Pittard advise our leaders to hold the...

Study For Understanding

Every time clients ask salespeople a question, they are trying to answer the big question they have in their minds, which is, "Why should I list wit...

Activity

Take a minute and look around your agency. Everybody looks busy, don't they? But are you making money? Are they making money? If you're not carefu...

Unattractive Company

One of the top three greatest real estate excuses of all time is: "You can't find good people!" In this leadership session, real estate agency profi...

A Promise Is a Promise

To people of integrity, their word is their bond. They do what they say, when they said they'd do it, how they said they'd do it. People of integrity ...

For Just One Day

People who are successful in their chosen fields do more of the right actions every day, over the long term. In this short real estate sales session...

Financial Foundations

In my experience as a real estate agency profit consultant, I've seen many real estate businesses in grave financial trouble, and many spend thems...

Cut To The Chase

Have you ever noticed how some people say five sentences when a 'Yes' or 'No' would have sufficed? Some people speak a lot but say little. Real esta...

Loving What You Do

Some people say you must love your work. I agree that this is desirable, but it's not always realistic. Pursuing this ideal could cost you a ...

Faking Happiness

Written and video reviews are essential. To quote one winning salesperson: "These days, clients go online and do research on you. At the listing pre...

Want to reach your profit potential? Contact us now.

Pittard


Suite 71, Level 4
330 Wattle Street

Ultimo NSW 2007
Australia


Mailing Address
PO Box 2045
Strawberry Hills NSW 2012


: (02) 8217 8500
Fax: (02) 9281 4198
AUS Free call: 1800 663 600
NZ Free call: 0800 448 065
International: +61 2 8217 8500

: info@pittard.com.au

Contact Us