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Archive for September, 2011

What Have We Done?

How and why has Allens Goode Leith Realty Limited just made the most important business decision in its 13 year history? That decision being: Our independent three office Northland organisation with consistent residential market share in our selling district of between 25 and 35% joining forces with the Ray White Group and, as of early October 2011, becoming Ray White Allens.

It all started early this year when an opportunity to purchase the existing Ray White Whangarei business was presented to the directors. That purchase would gain us a rental roll of around 70 good quality properties and the chance to encourage 11 experienced sales professionals to join the Allens team. At this point there was no inclination or consideration of joining the Ray White, or any other, franchise. As negotiations continued it became obvious to the directors that the selling licensee was very enthusiastic about the features and benefits offered by the franchise. Although still not seriously considering this option, we made a decision to meet the CEO of the New Zealand group, Carey Smith, for no other reason really than to discount the idea. Probably the most important decision of all as it turned out …

The old saying “you don’t know what you don’t know” springs to mind at this point. Looking back, meeting the quietly spoken, intuitive Carey was the turning point in the decision making process.

Real estate is all about people, relationships, empathy, and credibility. The way Carey explained what Ray White was all about, what it had to offer and how he believed it could add value to our company was compelling. This and other explanations of features such as their IT platform, marketing, training, networking and reporting systems were well planned, extremely informative and obviously ahead of where Allens was at this point (even though we thought we were well ahead of the game in a lot of areas). The resources that the Ray White organisation have at their disposal allowing ongoing research and development in all the important areas relating to the practise of real estate, combined with the existing high level relationships with supply and industry partners, as well as the stability and credibility of a 110 year old international real estate brand with a global reputation were factors that were starting to become, to say the least, very attractive to us.

On the other hand, the emotional connection to our existing brand was very strong. We had invested heavily, over the last decade especially, in building a local brand that had strong community awareness, equity and market share in Northland. We had a team of salespeople and support staff who had been extremely loyal and who were an important part of the growing of the Allens brand … how would they react to this change? Would they embrace and engage with the benefits and features on offer if we joined the Ray White Group? Or would they react in a negative and confrontational way that could cause irreparable damage to the company brand in these challenging times?

After several weeks of investigation, consultation with business advisors, including our accountants and bankers, proing and conning, the decision was made late one Friday night and from that moment on there has not been one moment of ‘buyers remorse’ – just excitement and enthusiasm regarding the future of our company.

A presentation was made to the two respective teams last week and, although I for one had some trepidation, my fears were unfounded.

The decision the directors had made on behalf of the company was immediately accepted by the two teams with an excitement that exceeded our expectations. It is obvious that the team members were also of the belief that this was something that Allens needed to take the company to the next level; that Allens had maybe hit a ceiling, although very successful as a brand over the last decade or so; that belonging to a globally aware brand with resources, knowledge and systems that can be tapped into with a press of a button, was the way to go.

Someone said to me a long time ago that “opportunities come to pass, not to pause” and we are very thankful that we as directors and later our team members have grabbed this fantastic opportunity before it got away.

Let the rollout begin!

Over the next few weeks our customers will start to see some dramatic visual changes take place as we rebrand our three offices at Whangarei, Tutukaka Coast and Bream Bay. Also undergoing a makeover will be the Allens Minis, website, stationery, flyers and marketing – as we take steps to become ‘Ray White Allens’.