By having a strategic plan to maximise the new opportunities you find as you carry out your procurement process and correctly managing each program can unlock serious income. This article focuses on how the BTR market can leverage their procurement process to generate new and ancillary income. Here are a few things I’ve found can help:
Along the procurement journey it’s highly likely some ancillary income deals may fall in your lap but what if you could actively seek them out? To effectively boost ancillary sales, the BTR industry should look to upgrade their sales approach and embrace personalisation.
Figuring out the different behaviours and preferences of each customer segment is a great way to discover how to add value. Using valuable procurement data effectively can lead to better personalised services and more relevant product offerings. For instance, a family of four may want different services than a young professional and therefore you should market service accordingly.
Understanding your residential client and using the procurement data available to you to present the right tailored offer to the right customer is a sure way to ensure a partner is willing to pay you for your marketing support.
By incorporating a centralised approach to procurement & tracking ancillary income data your in-house operations team can have access to a single system that houses all the information about what deals are working and what partners may need to be placed on an “improvement plan”. Simply put, by managing data you will improve your property operations, and see an increase in income.
Leveraging your customer lifecycle
Thinking beyond just signing the lease can jumpstart ancillary income. Residents will need services when they move in and you are strategically placed to know who and when. Many providers will happily pay to partner with you to ensure a smooth move in for every new resident.
Once residents are in they may want concierge style services like convenient dry cleaning, additional storage, apartment cleaning…
Residents moving out? Why not offer premium services you can charge for like one-off apartment deep cleaning or putting them in touch with local moving companies? – Charge a commission to the company for each successful resident referral, rinse, and repeat.
When you think of the resident lifecycle as a whole and not just in specific moments like when it’s time to renew, it can open a world of income streams.
Making ancillary income is easy when you think about how you can provide services that are attractive to your residents and meet the demands of their lifestyle.
For example, residential communities with shared outdoor space could be sitting on a goldmine of ancillary income. Property management companies that partner with local businesses can expand the range of services they offer residents, ultimately creating numerous upselling opportunities. This approach has a trifecta of benefits, you can increase your ancillary revenue through commission collected from the local business, local business will benefit from an influx of customers and residents will benefit from a greater variety of on-site activities, a win-win for everyone.
Want to speed up an in-house team’s procurement progress?
One of the biggest property management challenges is finding the right procurement support. At Fjeld Consultancy, our centralisation of purchasing typically saves clients 10-25% and saves decentralised teams a lot of time. Our processes, vendor base, and buying power is unparalleled in UK residential. Of course, the proof is in the pudding, since working with Greystar in 2016, we’ve helped them generate over £1.2M in new Ancillary Income revenue.
For more information on how we can help, make sure to get in touch.