2012 is just around the corner and many agents are looking at what investments they want to make in their business for the upcoming year. While many of us suffer from "shiny app syndrome" (we want the latest tech toys and tools) have you ever considered what the cost of that might be to your business? Before you decide to buy any new tool,a car, or any other expensive toy,here are four questions to ask yourself.
1. Do I really need this product or technology upgrade?
Impulse purchases are emotional in nature and often cost far more than the price tag. Stop for a moment and write out the pros and cons of buying the product. Do you really need it or can you live without it? For example, replacing a three year old computer will save you considerable amounts of time in terms of downloading pictures, videos, and documents. On the other hand, investing in a fancy video editing program is a poor choice unless you plan to learn how to use it. In most cases, it's a better use of your time to farm this out to someone else.
2. Am I willing to spend the time, money, and other resources to take care of it properly?
If you really need it, how much are you willing to spend to take care of it properly. For example, if you're buying a new car, most experts agree that it's best to drive the car for a number of years. Many of the luxury cars have 100,000 mile warranties that are well worth the price. For example, our extended warranty on our BMW just paid for a new set of brakes that normally wouldn't have been covered.
3. How can I get the benefit of this product without owning it?
Recently, we were looking for a second car. After evaluating the cost and how much I was driving (less than 2,500 miles per year because I travel so much), it made sense for us to just keep one car and to rent an extra car on an as needed basis. This has saved us thousands of dollars in expenses. Look at your expenses. Is there anything that you might be better off leasing for brief periods of time or borrowing rather than owning?
4. How can I reduce the overall costs of ownership
People normally don't consider how much it costs to keep a product up after they purchase it. In many cases, you may pay more for the top-of-the-line product, but it's cheaper in the long run. For example, I bought the top HP laser printer back in 1998. I print tens of thousands of pages each year and only have to replace the cartridge about once every 18 months. The same is true if you’re looking at a new ca. Determine which car has the best warranty. A car with a two year warranty may cost less initially, but the car with a five year warranty may be much cheaper in the long run.
This also holds true for real estate. When your clients are purchasing, consider the condition of the property. How soon will they need to replace the roof or the plumbing? While an older property may be charming, are they prepared for the maintenance costs? Would something newer be a better choice in the long run.
To keep your costs down, you must consider both the acquisition costs as well as the costs of maintaining the product over time.
Happy Holidays from all of us at RealEstateCoach.com
Posted by Bernice Ross. Join us this week as we welcome Shane Bowlin who will be discussing how to hire and work with a virtual assistant. Here's what she'll cover each day this week: Monday: How Does Virtual Assistance Differ from an In-House Assistant? Tuesday: The Virtual Assistant Job Description for Real Estate. Wednesday: Where You Can Find a VA. Thursday: Hire the Right VA for You. Friday: Tips for Working with Your VA.