Business model

Agencies embrace the Richardson & Wrench business model

A growing number of seasoned agency owners are starting the new year with a new name and more for their money after joining the Richardson & Wrench family of franchises.

As 2021 entered 2022, more than half a dozen established offices reopened under the Richardson & Wrench banner and several more are expected to join the group early in the year.

The most recent offices to join the group include the Sydney teams in Crows Nest, Lane Cove, Jordan Springs and Mount Druitt, as well as Figtree in Wollongong and Point Clare on the Central Coast.

Value for money

Richardson & Wrench managing director Andrew Cocks says the end of the calendar year has prompted many conversations with business owners and individual agents who want to change badges and enjoy a long-standing reputation. , a substantial toolkit of marketing and technology resources, and an attractive franchise value proposition.

“Earlier in the pandemic, managers were trying to protect their business and were probably too stressed during the shutdowns to want change,” Cocks said.

“But I’ve been amazed at how many new business inquiries we’ve had more recently, and how many people are looking to engage in conversations about the future direction of their business.”

With the more traditional brick-and-mortar franchise opportunity operating on a fixed fee structure, offering full franchise service solutions and no fees on property management, new business operators at Richardson & Wrench report they are getting much more value for money than with their previous brands where sales and rentals often incur high percentage fees.

Savvy operators see the benefits of being part of a boutique-focused family business with sophisticated marketing and digital solutions, as well as exclusive territory agreements.

“Whatever type of franchise they operate under with us, each gets exclusive territory so they know they can invest in an area that is theirs and build a profile knowing they won’t be competing with no other R&W office,” Mr. told the Roosters.

“Competition in the industry is tough enough without having to compete internally.

“I know that these new R&W offices find that R&W’s service offerings are very attractive.

“We are able to provide them with a wealth of resources and experts that they can rely on in their business, but these do not incur the same exorbitant costs that they would pay in a percentage model” , explained Mr. Cocks.

Specialists at your service

While many traditional real estate brands have teams of regional managers who look after a large number of individual offices, Richardson & Wrench has a unique but beneficial alternative.

“We have changed the traditional structure and employ a team of industry specialists,” Mr Cocks said.

“Our brand, marketing and strategy is led by Amanda Ward and our Group Operations Manager, Amy Bruce, manages all operational and technology solutions for the network.

“We have property management and social media experts, CRM system specialists, as well as highly trained administrators and marketing coordinators.

“Our management team is focused on providing regular and personalized support to our business operators and their staff.”

Mr Cocks said his team of specialists aim to ensure that all members of the Richardson & Wrench family have full support.

“They are there to give quick advice and support, rather than being told someone will look into it and possibly come back a week later.

“Often in real estate, especially in today’s climate, when you have a problem, you need it resolved immediately.”

He added that the network’s support is a great sounding board for managers who are meeting the many challenges of modern real estate businesses.

“If you’re a small business owner, sometimes you can feel really lonely,” Cocks said.

“You can have all these people staring at you, waiting for all the answers.

“Engaged interactive support from a franchisor is the absolute minimum that every franchisee in the country should be looking for so that they can truly add real value to their business. If we are not doing this for them, then what is our role? »

Freedom from fixed costs

Without a percentage of revenue going to a franchisor, Mr Cocks said Richardson & Wrench’s traditional model allows business owners to make a bigger profit.

“It also gives them more incentive to increase their sales. We have a number of franchisees who have doubled – and even tripled their sales – since they started with us.

“If they can triple their sales, that just means a massive increase in their profitability,” he said.

“Ultimately, our fee structure means that any activity undertaken by an office is undertaken knowing that it has a fixed overhead.

“That way they get all the services and infrastructure that we provide, which is at least equivalent, and in many cases superior, to the services charged by other franchises, but with us, it’s at a much lower cost.”

With margins squeezed across the board, Mr Cocks said business owners were looking to make a profit without feeling like there was a hungry hand in their pocket every day.

“It becomes more and more difficult to do what you usually would do because the workload involved in each transaction increases gradually; whether it’s compliance, sellers’ and buyers’ expectations, or landlords’ and tenants’ requirements, each of these elements of the communication process is becoming increasingly complex.

And due to the stiff competition in the market, many real estate professionals are choosing to fight back by lowering their fees and doing what they’ve always done for a little less.

“Unfortunately, this has been a long-term problem and it’s not going away anytime soon,” Mr Cocks said.

“So the more we can help an office deal with some of these external market issues and be more profitable as a flat-rate operator, the more they’re interested in that.

“In terms of value for money, if you compare us to percentage-based franchise options, we present a much better return on investment for these successful operators.”

“When you combine these benefits with our key focus on culture, providing cutting-edge marketing and technology solutions, and expert support services, it’s too compelling an offer not to seriously consider joining the Richardson & Wrench team.”