A fool and his money..... - REO Property Preservation Forum
Reply
 
LinkBack Thread Tools Display Modes
post #1 of 11 (permalink) Old 01-31-2013, 11:01 AM Thread Starter
Member
 
Blue Granite PPs's Avatar
 
Join Date: Dec 2012
Location: Charlotte
Posts: 46
Thanks: 4
Thanked 12 Times in 8 Posts
A fool and his money.....

I am recalling a converstaion with a competitor early 2012. He went ON and ON and ON about how he is expanding statewide. He was setting up opperations to the North and once that was operational, he was moving East, then South, then West. He was projecting that Volume would lead to Riches.

At the end of 2012, I ran into that same competitor and asked him how his year went and most importantly his expandation statewide. He said, that the volume was there but the pricing was NOT; he lost a good bit of money due to chargebacks, reassignments and lost clients. He ended up back at square one--operating in a 50 mile radius around his office.

I am not saying that HE is a fool, but his actions were indeed foolish.

Be smart with your money, be smart with your time, be smart with your strategy.

Mark Francis
President and CEO
Blue Granite Property Preservation Services, Inc
Blue Granite PPs is offline  
The Following 2 Users Say Thank You to Blue Granite PPs For This Useful Post:
REO2Rentals (01-31-2013), Splinterpicker (02-02-2013)
Sponsored Links
Advertisement
 
post #2 of 11 (permalink) Old 01-31-2013, 12:39 PM
npm
Senior Member
 
Join Date: Nov 2012
Location: Lehigh Valley, PA
Posts: 125
Thanks: 44
Thanked 32 Times in 29 Posts
when I first started we covered a large area approx 70-80 mile radius. All our work was spread out all over the place. After 6 months of running around like a fool we went 50 mile radius and only kept zip codes we had volume in. Now we've decided only 30-35 and carry a variety of clients. Less rechecks, chargebacks and bs.
npm is offline  
The Following User Says Thank You to npm For This Useful Post:
68W30 (02-01-2013)
post #3 of 11 (permalink) Old 01-31-2013, 06:06 PM
How I wanna be a PP Pro
 
Wannabe's Avatar
 
Join Date: Oct 2012
Location: USA
Posts: 1,103
Thanks: 232
Thanked 1,277 Times in 562 Posts
Small areas of coverage is not a bad thing. We used to service 5 Midwest States, South Carolina and all of Georgia. We made very very good money and our subs were pocketing more money in some cases then we did. The writing was on the wall starting 2006-8 and started pulling in the reins. TODAY No way would I consider a radius of more than 30-35 miles. No money in it anylonger.
Wannabe is offline  
The Following User Says Thank You to Wannabe For This Useful Post:
REO2Rentals (01-31-2013)
Sponsored Links
Advertisement
 
post #4 of 11 (permalink) Old 01-31-2013, 08:32 PM
Senior Member
 
Join Date: Apr 2012
Posts: 751
Thanks: 123
Thanked 504 Times in 253 Posts
When we I first started we covered four counties. After driving all day to do four cuts we dropped it to two counties, then one county and now only the West end of one county, all within 45 minutes of my house to the furthest job. I now route them so I am rarely more than 10 minutes between properties.
Gypsos is offline  
post #5 of 11 (permalink) Old 02-01-2013, 05:55 AM
Super Moderator
 
GTX63's Avatar
 
Join Date: Apr 2012
Location: Your House Soon...Soon
Posts: 3,186
Thanks: 676
Thanked 2,249 Times in 1,094 Posts
We did statewide coverage years ago when we thought there may be gold in them thar hills. The return dimished as the volume and area expanded. You should keep coverage areas for Nationals to the same areas you would for your private accounts.
GTX63 is offline  
post #6 of 11 (permalink) Old 02-01-2013, 08:47 AM
Business Consultant
 
Cleanupman's Avatar
 
Join Date: Nov 2012
Location: Silver Springs, Nevada
Posts: 1,380
Thanks: 322
Thanked 564 Times in 339 Posts
I have never understood the train of thought that to "grow" your business you need to add more territory to your coverage area...
Some of the concepts that are used in this industry are soooooooo not sound..

1. Grow your business...add zip codes=more logistics and upfront revenues
2. You'll make up for it with volume=losing revenue on all work orders not just one
3. You'll make up for it over there=it will take you 5-6 work orders to break even on the work order you just lost revenue on
4. "I need a favor"= do this for us so we can create a callback and get you to do the services for free

Aladay LLC
Property Preservation
New Business Consultant
Custom Glass&Wood
Cleanupman is offline  
post #7 of 11 (permalink) Old 02-01-2013, 12:02 PM
Senior Member
 
Join Date: Sep 2012
Location: NEWYAWK
Posts: 343
Thanks: 567
Thanked 162 Times in 88 Posts
4. "I need a favor"= do this for us so we can create a callback and get you to do the services for free

my fave the only favor im available for is inserting my foot in there backside
68W30 is offline  
post #8 of 11 (permalink) Old 02-01-2013, 05:49 PM
Senior Member
 
Join Date: Apr 2012
Posts: 694
Thanks: 42
Thanked 129 Times in 74 Posts
We cover a large area and it works. Logistics are a pain and costly, yes, but since we cover a more rural area, trip fees and lesser discount is possible which makes up for the distance.

Quote:
Originally Posted by Cleanupman View Post
I have never understood the train of thought that to "grow" your business you need to add more territory to your coverage area...
Some of the concepts that are used in this industry are soooooooo not sound..

1. Grow your business...add zip codes=more logistics and upfront revenues
2. You'll make up for it with volume=losing revenue on all work orders not just one
3. You'll make up for it over there=it will take you 5-6 work orders to break even on the work order you just lost revenue on
4. "I need a favor"= do this for us so we can create a callback and get you to do the services for free
SwiftRes is offline  
The Following User Says Thank You to SwiftRes For This Useful Post:
GTX63 (02-02-2013)
post #9 of 11 (permalink) Old 02-02-2013, 06:54 AM
Super Moderator
 
GTX63's Avatar
 
Join Date: Apr 2012
Location: Your House Soon...Soon
Posts: 3,186
Thanks: 676
Thanked 2,249 Times in 1,094 Posts
Expansion is a great thing in many industries; in this one however, it is unique when you can make it work in the long term. Congrats are in order, you are the exception.
GTX63 is offline  
post #10 of 11 (permalink) Old 02-02-2013, 08:56 AM
Senior Member
 
STARBABY's Avatar
 
Join Date: Apr 2012
Location: kentucky
Posts: 681
Thanks: 582
Thanked 197 Times in 137 Posts
have had to reduce my coverage area a couple of times. the larger areas worked until I got really busy, then it was a mess!
I think there was nothing worse then having to return to a property for more photos or 5B`s no charge BS whenit was an 1 1/2 away!
STARBABY is offline  
Reply

Quick Reply
Message:
Options

Register Now



In order to be able to post messages on the REO Property Preservation Forum forums, you must first register.
Please enter your desired user name, your email address and other required details in the form below.

User Name:
Password
Please enter a password for your user account. Note that passwords are case-sensitive.

Password:


Confirm Password:
Email Address
Please enter a valid email address for yourself.

Email Address:
OR

Log-in










Thread Tools
Show Printable Version Show Printable Version
Email this Page Email this Page
Display Modes
Linear Mode Linear Mode



Posting Rules  
You may post new threads
You may post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are On
Pingbacks are On
Refbacks are On

 
For the best viewing experience please update your browser to Google Chrome