Guest Posts, Written Posts

Who’s in Charge of Revenue? – a guest post from Steve Lefkovits

2 Comments 16 August 2011

This week’s guest post is from Steve Lefkovits.  Steve is the Executive Producer of the Apartment Internet Marketing Conference and the upcoming, first annual Apartment Revenue Management Conference.  I’m excited to share this post from Steve and details of what’s in store for the Apartment Revenue Management Conference.

“Generally speaking, a 5% reduction in sales expenses increases profits by 3%; a 5% increase in sale volume increases profits by 20%; and a 5% increase in selling price increases profits by 50%.”

Robert Cross, Author of Revenue Management:
Hard-core Tactics for Market Domination

 

Multifamily properties are currently selling at initial yields of 5–6%. Increasing rental revenue 5% potentially represents an 80–100% profitability increase out of the gate. With that kind of success possible for owners and investors, I ask:

Who’s in charge of finding and capturing incremental revenue at your company and how does the company do it?

Answering those strategic questions is at the heart of the inaugural Apartment Revenue Management Conference, the premier educational forum and networking event for multifamily investors, asset managers, pricing analysts and property management executives.

A Whole-Company Approach

Most apartment operators have cost-side chiefs—a CFO, COO and often heads of human resources, marketing and other expense-based functions. Many have chiefs of new investment.  However, relatively few companies have an executive in charge of maximizing rental revenue from existing units.

Revenue management is not just a software system that enables companies to analyze data. It’s a whole-company approach to matching supply to demand and delivering the right offer to the right prospect at the right time. It discovers micro-markets and predicts consumer behavior within them so companies can price available units to maximize revenue.

If you’re interested in learning more about this whole-company approach, then please plan on joining us at the Apartment Revenue Management Conference. Not only will you hear from leading multifamily executives and revenue management experts, but you’ll also hear from the man widely credited with inventing revenue management—Robert Cross, who in his first year of revenue management with Delta Airlines netted the company $300 million in incremental revenue.

The Apartment Revenue Management Conference will be held September 12–14 at the Westin Kierland Resort in Scottsdale, Arizona. It is open to the entire multifamily industry, and is only $895 for two days of networking and informative sessions. More than 200 executives have already registered. You can find more information and session details at www.aptrevenue.com.

I hope to see you there!

– Steve Lefkovits

  • Anonymous

    Great post, and great questions. One thing that we have started is to RUB Landscape and Snow Removal, in addition to Gas, Water and Trash, which we have always done. There is always the fine line of maximized revenue and marketing, or perceived negative push back.

    • Very interesting Eric! Flat fee for landscape and snow removal.  Haven’t heard of that before, but could see it working.  Thanks for adding!

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