Professionals expand into US market

Friday, July 15, 2011

AUSTRALIAN property sales chain Professionals Real Estate Group is set to expand into the United States market.
The Queensland-headquartered company, which has more than 300 offices throughout Australia, New Zealand and a number of Asia-Pacific countries, has been eyeing off the American market for several years and now believes the time is right to enter the market.
Professionals’ chief executive officer Glyn Morgan said the Professionals’ membership model would give the chain a substantial advantage over most of its American rivals.
“Our fixed-cost membership model means that once an agency has more than five strongly performing salespeople on its workforce, the agency owner is much better off switching their operation to the Professionals brand,’’ said Mr Morgan.
“While the US market is still relatively weak, franchises in the US are looking for a better option than the standard model and a fixed-fee model focussed on providing real value for money is very attractive for many US operators because it provides for more upside with better performance.
“Franchisees are paying fees per agent and a percentage on their sales while under our model the agents only pay their membership fee, which gives access to a whole suite of service offerings.
“Our members enjoy the full benefits of their achievements when they grow or do better, unlike the franchise model.”
Mr Morgan has already met with the owners of a number of large independent real estate agencies in the US and is in talks with them about the benefits of the Professionals group and what it can deliver to them.
Mr Morgan is set to fly to the US next week for the official opening of the new Phoenix headquarters and continuing to meet prospects.
“Our US model will almost be identical to the business model that we have operated in Australia since we were established in 1976,’’ he said.
“The main difference will be that the Australian-based Professionals Real Estate Group will retain a controlling stake in the US membership group whereas in Australia it is 100 per cent controlled by the members.”
Mr Morgan said the US market offered substantial growth opportunities for the Professionals network.
“There is still substantial scope for further expansion of the Professionals network within Australia and we intend to do that but we also want to build a sound foundation for growth in the US market.
“I believe that once the US market recovers and awakens from its slumber, there will be substantial demand for professional quality real estate agencies throughout the nation.
“We want to position ourselves now to be a part of that upsurge.”