Years ago, I went on a nation-wide tour where I met with appraisers in several cities. We discussed what I do as an appraiser and business owner, and how they could improve their businesses. At the beginning of each day, I asked the group I was with what their hourly rate was. By the end everyone could answer that question, but on average, I would say that about 10% of them actually knew what their hourly rate was at the beginning. They just hadn’t taken the time to think about what they were actually earning. It can be so easy to get stuck in a rut of keeping your head down and pumping out appraisals, but it’s important to take the time to work on your business, not just in it. I’d like to share something to consider during your next “on it, not in it” time.
This idea comes from one of my mastermind students. In his business, he’s broken everything down into what he calls “production units,” or pu’s for short. The result is that he’s able to structure his business around these production units. You can use production units in a variety of ways, but the gist of it goes something like this. It takes longer to do a full appraisal than an update. It takes more time to do a big, expensive house than a little cookie-cutter home in a subdivision. He breaks down each of those concepts into the time it takes to complete them, and then converts that into a certain number of production units. For instance, a standard house might be one production unit, a luxury home might be 2 production units, and an update may be ½ a production unit. As a consequence, he is able to keep track of what he’s doing, what his employees are doing, and what his office is capable of doing.
This is a great concept. It’s something that I recommend you think about and look into when you next make time to work on your business. It may be just what you need to help you keep track of your business more effectively and efficiently.
For more information on this subject, please download and listen to The Appraiser Coach Podcast Episode: