So two guys walk in to your business, and they both want to buy you out. You ask the first one: How much will you give me? and you say, "My accounts are worth $4800 a piece, and I have 100 properties" He says, I'll give you $4800 a piece.
You ask the second guy, "How much will you give me?" He says: "I'll give you $2800 a piece. That's what they are worth to me."
Who is going to pay you more for your business? Would you be surprised to learn it is the second guy? Because when you are fiinshed tlking to him, he will pay you amost 2 million dollars more. (and what has this got to do with property management software anyway)?
To understand that answer, let's take a look at the valuation. to determine the value of an account, you need to know:
- The net operating profit NOP per account.
- The Average length of time a customer remains with your business
So, Let's assume your average NOP is $80.00 per month X 12 = $960
And your average client stays 5 years =$4,800.00 value per managed property.
Now, the first guy agrees with your valuation. so to him, your business is worth the value of the accounts: $480,000.
The second guy has told you he can only garner $2800 per account, which means he is much less efficient than you at running his business. So what he should be buying is not just your book of business, but your more profitable business model. Assume his business has 1000 properties. The value of your business to him is the value of your accounts, $480,000, PLUS the difference between his inefficient management techniques, and your Efficient Property Genie Property Management Software based management techniques. So, To him, you are worth an additional $2,000,000.
This is what Property Genie Property Management Software does for you. By introducing multiple techniques to cut your cost per transaction and increase the satisfaction of your customers so they stay longer we increase the value of your business. We improve your bottom line.
I'd spend more time talkin' to the second guy.