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Knowing the Competition

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Presentation on theme: "Knowing the Competition"— Presentation transcript:

1 Knowing the Competition
IS WHAT WE DO January, 2016

2 B.C. Competitor Count December 2014 vs December 2015 Royal LePage
Brand Dec '14 Dec '15 (Difference #) Re/Max 3073 3313 240 Sutton 2374 2467 93 Royal LePage 2080 2222 142 Royal Pacific 960 1016 56 Macdonald 900 946 46 Century 21 608 671 63 HomeLife 531 474 (57) Coldwell Banker 481 478 (3) Keller Williams 182 256 74 Sotheby's 115 118 3 Prudential 271 106 (165)

3 Brand Market Share – 2015 Vancouver & Fraser Valley

4 Brand Market Share – 2015 Victoria

5 2015 BC RLP Network Conversions
We’ve added >600 agents to Royal LePAGE Coast on Vancouver Island – 141 agents Prudential Conversions – 445 agents Coast in Powell River – 15 agents

6 Royal LePage CANADA’S LARGEST
Real Estate Company More than 16,500 Sales Professionals in over 650 locations nationwide. 6

7 DOUBLED IN SIZE Since 2002 we’ve more than 16,000 16,500 15,000 14,450
14.050 REALTORS 13,800 12,010 As a company, our laser focus on providing exceptional service and value is paying off. Royal LePage is experiencing incredible momentum. We’ve more than doubled the size of the company since And, 2014 has been a banner year. We expect to add 1,000 agents to our already sizable Network this year alone. That’s 1,000 more opportunities for networking and referrals. 9,555 7,000 2002 2003 2005 2007 2009 2011 2013 2014 2015

8 National Brands… December 2014 vs December 2015

9 Bursting Balloons IS WHAT WE DO January, 2016

10 The high cost of floating “Above the Crowd”

11 RE/MAX vs. RLP Franchisor Fees – Agent
Gross Commission Income $60,000 $100,000 $150,000 $200,000 $250,000 RE/MAX Annual Fee $400 Monthly Fees Monthly Fee fixed $130 Variable Fee 1% to max of $2000 $600 $1,000 $1,500 $2,000 Regional Ad Fund $115 Total $3,940 $4,340 $4,840 $5,340 Royal LePage Monthly Fee Fixed $125 Variable Fee 1% to max of $1325 $1,325 $2,100 $2,500 $2,825 RE/MAX Fees vs RLP difference $ $1,840 $2,015 $2,515 RE/MAX Fees vs RLP difference % 188% 174% 171% 189%

12 RE/MAX vs. RLP Franchisor Fees – Teams
Gross Commission Income $140,000 $250,000 $500,000 $750,000 $1,000,000 Number of Agents in the Team 2 3 5 7 RE/MAX Annual Fee ($400) $800 $1,200 $2,000 $2,800 Monthly Fees Monthly Fee fixed ($130/agent) $260 $390 $650 $910 Variable Fee 1% to max of $2000 $1,400 $2,500 $5,000 $7,500 $10,000 Regional Ad Fund ($115/agent) $230 $345 $575 $805 Total $8,080 $9,180 $15,020 $24,200 $33,380 Royal LePage Monthly Fee Fixed ($125/agent) $250 $375 $625 $875 Variable Fee 1% to max of $1325 $1,325 $4,325 $5,825 $8,825 $11,825 RE/MAX Fees vs RLP difference $ $3,755 $4,855 $9,195 $15,375 $21,555 RE/MAX Fees vs RLP difference % 187% 212% 258% 274% 282%

13 Franchisor Differentiators
RE/MAX 5 year Term Initial Franchise Fee $27,500 Renewal Fee $10,000 Broker/Owner pays Annual and Monthly fees to Franchisor ROYAL LEPAGE 10 year Term Initial Franchise Fee $10,000 Renewal Fee Up to $10,000 Broker/Owner (non selling) exempt from fees

14 Proof is in the numbers…
Get to know their plans locally. Determine your competitiveness in the market for your fee structure. Leverage potential fee advantage for teams. Prepare an apples to apples comparison…


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