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Office Efficiencies Accountability

Office Efficiencies Accountability. Century 21 Real Estate LLC. Office Efficiencies EDO – Effective Desk Occupancy. Visual Management tool to measure office performance Measures true occupancy rate Gives actual company $ and net profit contributed by agent Production vs Profit

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Office Efficiencies Accountability

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  1. Office EfficienciesAccountability Century 21 Real Estate LLC

  2. Office Efficiencies EDO – Effective Desk Occupancy • Visual Management tool to measure office performance • Measures true occupancy rate • Gives actual company $ and net profit contributed by agent • Production vs Profit • Simplifies the planning/goal setting process

  3. EDO Overview • For any office take the total operating expenses (all expenses, excluding commissions, royalty fees and referral fees) and divide by the number of desks in the office.  This will give you each desk’s cost. • Next calculate the dollar figure each agent has contributed to the company for the Last Twelve Months (LTM). Start with your top agents and place them on the desk chart. An agent can only be used once – no carryover. • Once all agents have been “used up” (assigned to a desk), you divide the number of covered desks by the total number of desks. • Note – you can match up more than 2 agents to a desk for this analysis. • In a much larger office, you could have several low-producing agents who together create one desk.

  4. EDO Overview-Continued • The implication is that you could technically have an office like this with 100 agents who all do exactly $2k and end up with 100% EDO. • The reality is that wouldn’t happen and the reason you match up is to give some credit for possible up-and-comers and part-timers rather than focus solely on the agents who individually cover their desk costs. • NRT has found that there is a direct correlation between profitability and EDO.  • It is impossible to have an office with high EDO and low profits and, vice versa, almost impossible to be profitable with low EDO.  Their target is 80%.

  5. Office Efficiencies EDO – Effective Desk Occupancy Avg LTM Cost Per Desk = $31,867

  6. INGRAHAM 197k POWELL 93.7k CHAN 89.7k VUKOSA 80.3k LEISY 74.7k LEISY 73.9k Office Efficiencies EDO – Effective Desk Occupancy Avg LTM Cost Per Desk = $31,867

  7. CHAN 29.6k MORISCH 28.0k STEWART 2.9k = $29,567 = $32,528 MENDEZ 7.0k = $28,056 = $35,121 MA 26.3k LEVY 23.0k BARBELLA 7.8k = $26,342 = $34,168 RADDING 8.5k = $31,562 = $40,210 = $23,034 LAFFEN 8.6k Avg LTM Cost Per Desk = $31,867

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