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Measure What Matters

Writer's picture: J Bradd GreeneJ Bradd Greene

Have you ever wondered how profitable your HOA resale department truly is?

Many management companies neglect to measure the financial health of this crucial department. This lack of awareness can lead to missed opportunities and lost profits.

But what if I told you there's a way to unlock the hidden profit potential in your resale department?


In this article, we'll explore the robust financial metrics GetDocsNow uses to review and maximize the profit of our clients' resale document departments. We'll also share some eye-opening data that will challenge your assumptions about how to measure profitability.


Are You Financially Literate When It Comes to Resale Documents?


Think about it: Isn't it essential to measure the success of your second-largest income source? You know your revenue per door for management fees, don't you? Shouldn't you also know your resale document revenue per door, even better, per turnover?


Unfortunately, most HOA management companies are flying blind in this critical area. They lack the financial literacy to make data-driven decisions, which costs them tens of thousands of dollars every year, and they don't even realize it.

You don't have to be one of them any longer. Keep reading to discover how to gain a crystal-clear understanding of your resale department's performance.


Key Performance Indicators (KPIs) for Resale Departments


GetDocsNow utilizes a combination of KPIs to comprehensively understand our client's Resale document's performance. Here are some key metrics to consider:


  1. Total Revenue: This is a good starting point, but it's a blunt instrument. Market fluctuations and changes in door count can significantly skew this metric.

  2. Average Revenue per Door Under Management: This provides a more nuanced view, but it's still susceptible to change as the real estate market swings.

  3. Average Revenue per Turnover: This is the gold standard for measuring resale department efficiency. It isolates the profitability of each transaction, giving you the clearest picture of your department's health. This number will remain true regardless of what happens in the real estate market.


Real Numbers: Unveiling the Power of Per-Turnover Revenue Measurement


We analyzed data from a client who left GetDocsNow for a competitor, promising them a 30% revenue increase "without price hikes." (Unfortunately, they lied and increased prices a lot) 


Using their first three months statements from Homewise (which the client shared with us), we compared their GDN revenue per turnover with their Homewise revenue per turnover; here's what we found:

  • Revenue per Turnover with GetDocsNow: $308

  • Revenue per Turnover with Competitor: $333 (after a price increase)

  • Potential Revenue per Turnover with GetDocsNow (assuming the same price increase): $447


While the competitor delivered a slight bump in "Total Revenue", it came at the cost of higher prices. Only by measuring the "Revenue per Turnover" could we see that by staying with GetDocsNow and implementing the same price increase, the client could have achieved a significantly higher profit margin. Instead, they lost $107 for each property sale, costing this management company with 6,000 doors over $40,000 per year. Can your company afford to lose or leave behind $6.67 for every door you manage?


The Bottom Line: Don't Be Blinded by Illusory Gains or Returns


Focusing solely on total revenue can be misleading. True profitability lies in maximizing revenue for each home that sells in one of your communities.


Beyond the Basics: Additional Considerations -


Once you have a grasp of the core KPIs, consider these additional factors that affect your profit:

Online System Performance

GetDocsNow is designed in such a way that we are the only online resale document provider who can assure the sale of every required document for every address in every association and for every sale of every home in your managed communities. It's for this reason, our clients make tens of thousands of dollars more each year.

Time Lost Processing Orders and Maintaining HOA Data and Documents

Not all time is lost or wasted, but if you don't measure and compare, you will never know. GetDocsNow has several key features thoughtfully created to save your staff hours each month.

Time Lost on Customer Service

Some customer service may be needed, but how much time does your staff lose answering questions by phone or email that your document provider should answer? Or worse yet, your staff has to deal with customers who are complaining about your document provider?


Free Resources to Help You Take Control


We understand change is hard, and measuring and implementing these metrics can seem daunting. That's why we're here to help! To access some resources, no strings attached, reach out to me, and I'll be happy to help!

  • Free Consultation: We'll analyze your current statements and help you identify your turnover rate.

  • Free Excel Formulas: Get the tools you need to easily calculate your key resale department metrics.

Consider GetDocsNow Your Resale Department Resource Partner


If you’re interested in discussing this further or learning more about how we at GetDocsNow measure what matters I can be reached at bgreene@getdocsnow.com or to schedule a conversation click here.


Together, let's unlock the hidden profits in your HOA resale department!


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