BILL CHERRY'S GREATEST DALLAS PARK CITIES REAL ESTATE BLOG: Pay Attention to Considering Cause-Effect. It's Real.

Pay Attention to Considering Cause-Effect. It's Real.

Federal law from the beginning of time was that the US Government would provide postal service, and that private carriers could not compete.


Whether or not it had worked efficiently is an opinion that's up for grabs.



Federal Express could have never been invented had they not negotiated an exception.  It was this:  They would provide super fast, next day delivery of important mail, a service that the US Postal Service was not providing.


The deal would be predicated on the customer's honor that it needed fast delivery, and FedEx's honor that it would stick to that one type of service. 


To seal the agreement with a kiss, FedEx was required to print "Urgent" on the face of each of its special envelopes, and it wasn't allowed to transport anything that wasn't in one of those fancy envelopes.


But what was hiding in the bushes was that rather than USPS meet the need that FedEx's proposed its business would be predicated on, it gave it away. 


A highly profitable venue that had not previously been accurately considered was given away.


So what was the effect?  Simply, that the USPS was left with an already net umprofitable business without what it could have had as a major offset.


Real estate companies fall into a similar trap.  They license and contract with newcombers without knowing whether or not they can carry their weight by bringing in sufficient income.


And sure enough,  sometimes a new agent like Stella doesn't, which brings on the rationalization:


"Well, Stella is paying her part of our overhead by "renting" our services, so we might as well keep her as long as we can."


But the real question is, How many possible listings and sales are getting by Stella without success, when put in the hands of another agent at the office would add a significant income stream to the office kitty?


Real estate management needs to wonder about this enough to set up pro-active ways of measuring agent success, and to either help failing agents rectify their lack of production, or to terminate them at some predetermined point.


Both the broker and the agent need to agree on what is expected and by when at the time the agent is contracted.


Bill Cherry, Realtor
214 503-8563

Comment balloon 0 commentsBILL CHERRY • October 28 2017 02:04PM


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