Running flex spaces almost always involves razor-thin margins and the continuous budgetary balancing act between offering premium hospitality and realistic profit margins.
There are a lot of businesses that exist to help drive up revenues of flex workspaces, from human brokers, to booking platforms, to technology across the customer journey.
Today, I’m going to focus on the subtopic of servicing bookings via external partners – an area I know very well, from both a past life as a workspace operator and someone who built one of the first “Airbnb for desks space” platforms in Europe.
Particularly, I’d like to dig into the real and often forgotten costs per lead from any platform, and why, if approached correctly, you can cultivate a superb network of cost-efficient revenue drivers.
The obvious costs.
Some costs are front and center when working with online brokers and aggregators.
These are the fees.
Whether it’s listing fees, sponsorship fees (to appear higher in results), or per-booking fees.
These are what most people think of when we discuss the “costs” of sales generated via third-party platforms and brokerages.
The two groups of often-forgotten costs.
But two groups of very real costs usually get forgotten.
The first often-forgotten group of costs are Quantifiable Costs
These are costs that can be directly measured.
This includes the cost of hourly wages that go into creating, managing, responding to, and servicing listings, requests, tours, and bookings.
Added to the wages (or work time) that go into tracking, reporting, accounting, and problem-solving common or surprise issues – these costs can add up pretty quickly.
The second often-forgotten group is Unquantifiable Costs.
These are the costs that can’t accurately be measured, but should still be considered.
These include (but are not just limited to) things like:
Is there anything else your team could be doing, or revenue they could be generating, instead of doing what they are currently doing?
Would your brand suffer any “damage” if things ever go wrong, or when experiences aren’t as seamless as expected? What would it cost to restore any lost reputation or mend relationships?
Costs of Churn
Are any existing customers at risk of leaving due to resources being diverted to servicing prospects or new customers?
Combining obvious and often forgotten costs, you get what we call “Blended Overheads”.
Left unchecked, untracked, and unoptimized, this could cause margins to be even thinner than predicted in business plans, quarterly reports, or other stakeholder communication.
In the worst case, unchecked overheads have led to revenue losses per booking.
Taming these overheads = higher profits.
It can sound scary, but these overheads should not prevent you from taking advantage of the wider reach and higher revenues that market-leading platforms and services can provide.
You just need to check, track, and optimize your blended overheads.
We get this. It’s one of the ways we help flex space operators continuously improve their businesses.
Up until 2022, many flex space brands were focused on growth at break-neck speeds.
The flex spaces and brands that emerge from 2024 as market leaders will be laser-focused on revenue optimization.
Bringing in help to reduce blended overheads.
Depending on where you are as a business, Syncaroo has 3 solutions that can be leveraged to streamline your overheads by automating tedious and repetitive processes across your flex space business.
With Syncaroo Advantage, we’ll do 3 quick but very thorough assessments of your tech, dataflows, and process setups to make recommendations around the optimizations you could make to hit your prioritized goals. In this case: identifying and shrinking your Blended Overheads.
With Syncaroo Platform, you not only get access to time-saving tools and battle-tested integration infrastructure, but you also get a monthly 45-minute call with our team to dig into any costs, overheads, optimizations, and opportunities.
For operators who want a bit more power and guidance in their corner, Syncaroo CIO provides a fractional Chief Information Officer to your team on a short or long-term contract basis.
Not sure which, or which combination of, Syncaroo solutions can best support your business, and reduce your Blended Overheads across all platforms?
🤙 Request a free, no obligation, 1-on-1 call and let’s take it from there.