|Real Estate Information|
How To Realistically Set Your Fees - Part 2
Sue and Chuck DeFiore
Effect of Expenses
The last article examined how to calculate your realistic billable hours. If you remember, we arrived at approximately 1100 hours in a year. To earn our mythical $46,000 per year, you needed to bill at a rate of $42 per hour. Now we need to take into account the expenses of running a business and see where those put our hourly rate.
Most costs fall into three general categories: business and office expenses; salary and personal taxes; and, benefits and profit margin. In this article, we will concentrate on the first category, business and office expenses.
Everyday expenses are part of doing business, and these must be reflected in the prices you charge or you will not be in business for long. Expenses to consider are rent for office space. If you are home-based, you will still have an increase in utilities, such as gas and electric over your regular household bills. You will have telephone costs, postage, copying costs, stationery, office supplies, subscriptions and possibly, membership dues.
You will also need to make periodic upgrades to your office equipment and furniture. Items such as computer hardware and software; fax machine, copier, filing cabinets, telephone headsets, etc. All of these items add to the hourly rate you charge for your services. You must have a good estimate of what these costs total each year or you will end up cheating yourself. If you do cheat yourself, you are going to drastically increase your stress levels and lose much of the enjoyment of running your own business.
Lets plug some numbers into our costs and see how they affect our hourly rate.
Rent $600 per month x 12 = $7200
Utilities $100 per month x 12= 1200
Telephone $100 per month x 12 = 1200
Postage $100 per month x 12= 1200
Copying $50 per month x 12 = 600
Stationery $25 per month x 12 = 300
Supplies $50 per month x 12 = 600
Upgrades $150 per month x 12 = 1800
Furniture $50 per month x 12 = 600
Yearly Total = $15,300
The yearly total comes to $15,300, divide this by 1100 billable hours and you get approximately $14 per hour. Now add this to the original $42 per hour and you can see that you need to charge $56 per hour to cover your hoped for $46,000 per year income plus your expenses. If you are home-based, you can subtract the $7200 per year in rent or about $6.50 per hour from the $56 above.
I have made a number of assumptions in arriving at these figures, your costs may be more or less, but this will give you an idea of what to look for and how to calculate your expenses. If you have any questions, write to me or give me a call and I will go over your situation with you.
Remember, in order to be fair with yourself and your customers, your prices must reflect the true cost of doing business. Do not ever apologize for your prices. You need to charge enough for you to live on and enough to stay in business to service the clients that have come to depend upon you. If some of your customers cant understand this, change your customers, not your prices.
Copyright 2003, DeFiore Enterprises.
Look Past the Bottom Line for a Propertys Potential
It’s unfortunate that many real estate investors tend to look at the bottom line when deliberating about a property, rather than the big picture.The real moneymakers in real estate investments are the people with vision, who think creatively, and are willing to assume some level of risk.
If we want to fill our heads with the doom and gloom society seems tothrive on, all we need to do is turn on the local news at night. To make that quantum leap toward personal happiness and success in life,sometimes we just need to do what so many people seem to be talkingabout lately: clean house and take personal inventory of the people weassociate with most.
Jobseekers! Look For Smoke, Not Fire...
"If you always do what youve always done, you will always get what youve always received,” said some wise person. This is certainly true when it comes to job-hunting, especially during a "sucky" economy. How many times have you applied to a job on Monster.com Now ask yourself, "How many other people have applied for the same position" The numbers are discouraging I assure you. Should this keep you from applying to jobs online By no means, job boards are a necessary part of the process. However, if you limit your jobsearch to seeking only those jobs that you are qualified for then you are making a mistake. Am I suggesting that you do a "shotgun" effect with your resume and apply to as many jobs as you can hoping that by some miraculous twist of fate you catch a recruiters eye No... and yes, in a way.
Feed me - Satisfy the Search Engines and Your Sites Visitors With Keyword-Rich Content
Search engines love content. Graphics may make your site look great, but a nice picture does not attract a search engine. Or a searcher for that matter. Good, relevant content does.
Bunbury Western Australia
The first recorded mapping of what is now Koombana Bay and the eventual City of Bunbury, was in 1803 by the French explorers Nicolas Baudin and Louis de Freycinet, from their ships the Geographe and Casuarina. In 1831 there was a temporary English military settlement with the first settlers moving to the area named after Lieutenant Henry William St Pierre Bunbury in 1838. A growing port serviced the settlers and the subsequent local industries that developed.
Why Some People Almost Always Make Money With Investments
Real estate investment takes motivation, drive and ambition on your part if you want to see your hard work turn into a huge profit. If you, yourself dont have the enthusiasm, chances are, your real estate investment days wont last long or make you much money. But, if you do, the possibilities are endless and so is your financial gain.
Determinants Of Success- Revisited, Again.
If you have been a long time subscriber to this newsletter you have read about the determinates of success before. If you are new, hold on to your hat because this is some powerful stuff.
Wire Transfers: The Easiest Way To Send Money
In the past, if you wanted to send money electronically through a wire transfer you only had a few options available to you. You could go to your local bank to conduct the transfer, or you could use the services of a company such as Western Union. But nowadays more and more companies are set up to provide wire transfer services, especially online. Companies such as PayPal, for example, allow almost anyone to send money worldwide through their website – and all you need is an e-mail address and a credit card. In addition, most local banks that provide online banking services now allow their patrons to send wire transfers through the Internet.
When a Real Estate Agent May Not Be The Best Option
Historically, when homeowners wanted to sell their home, the first call made would be to a Realtor.Since the early 1900’s, Realtors have represented homeowners during the process of selling their home, which is usually to another homeowner.Real estate brokers hold state regulated licenses that allow them to market real estate on behalf of the owner.The national average for broker commissions is approximately five percent.In many cases, another broker will bring the buyer and receive typically fifty percent of the commission.When the majority of homeowners sell their home, they believe a real estate agent gives them the best chance to maximize the amount they receive and the agent commission will come out of their proceeds at closing.This is a process that takes place everyday throughout America.
The Power of a Home Equity Loan to Pay Down Debt
Households across the country are finding themselves in a similar situation. They lack the financial funds to make the necessary changes to their home and need to find a way to fund upgrades and eliminate debt. A popular way of financing these changes without killing themselves is by taking a home equity loan to pay down their debt.
Do You Make Less Money Than Your Taller Peers
A recent study at the University of Florida found that over the span of their careers short people earn less money than their taller counterparts. In terms of cold hard cash, each extra inch in height equals roughly $800 difference in annual pay. So, essentially a person standing at 5 ft 8 inches tall will make about $9600 less annually than someone standing at 6 ft 8 inches tall.
The Disciplines of Success
Success, in the dictionary, is defined as, “The achievement of something desired, planned, or attempted.” So why is success in our society defined by the balance in your bank account, the car you drive, or how big your house is You are successful if you are a lawyer, doctor, or movie actor with a six figure income. You should be able to be called a “success” when you have been able to do anything and everything you have wanted to do in your life. Shouldn’t success be defined as being able to do what your passion is in life Shouldn’t you be successful when you have achieved complete happiness Besides money, wealth should include your spiritual, physical and mental well-being.
Is Your Business Safe
Well, is it! Do you back up your files on a regular basis Do you have a back up plan in place What’s important to your business and what isn’t What happens if you get hurt, who will run your business Do you have customers come to your business What ifthey get hurt, are you covered What about all the equipment you have, is it covered
Writing a Press Release
When dealing with "this-just-in" type information, it is important to understand how to write a head-turning press release. A press release must contain substantial information that you consider to be newsworthy and substantial. Relate the news to the audience. Spell out for them WHY it is newsworthy and why they should read on. First describe your news, and THEN tell who said it, etc. Remember that the first ten words in your press release are the attention-getters, thus should be effective. Use what journalists refer to as plain-style language, not fancy words or lots of adjectives. Stick to the facts; avoid fluff. Provide plenty of contact information the name, phone numbers, fax etc. for the person with the most information about the story to make it as easy as possible for the media to do their job!
Networking - Outside The Box
We receive numerous emails regarding how to network. For those of us in lease purchasing its easy, for others not so easy.For example, those in the travel business have been hit hard by business slowing down. Why not try to network with some of the tanning salons, and offer discounts to those individuals for cruises and/or exotic locals. Or network with B&B owners in your own state or neighboring states and offer your customers weekend package deals.Spas are becoming very popular. Network with some in your own state or surrounding states and then offer specials to your clients.
Internet News Services Explode Online
It seems no matter how much information comes available online, people thirst for more.
How Do I Define My Market
Your market is who you want to reach. Your customer. Who is your average customer What is your estimate of total market size What territory do you intend to serve Will you offer a variety of products or services
Customer Service – the Real Estate Revolution
Traditionally, real estate has been viewed as a sales industry. But perceptions are changing. Agents around the country are coming to believe that the key to real estate success is service – not sales.
A Time-Saving Programming Tactic that Doesn’t Work
Let’s say that you have a software project that’s under severe time pressure.Let’s say that this deadline is so tight that you already know it will involve many late nights of black coffee and frenetic programming.What can you do to make this process go faster
Types of Listings with Agents
There are several different types of listing contracts. Few of them are detailed below:
|home | site map|