Property management and the apprentice's lesson
The other day I was watching an episode from the well known show The Apprentice. This show generally offers many business lessons for both those who know about business and those who are out of the business world. In that episode the teams had to create an affordable luxury product. The team that had the most attractive product though wasn't the winner.
One of the lessons in that episode was the that team set a price on that product that was low enough to cover the operational cost of the supposed store. Of course someone would expect that the team members would have taken this fact into consideration when they were trying to find their price policy. However they didn't!
Thinking this fact, I tend to think that many entrepreneurs and small companies fall in the same trap. Therefore, here the property management is not executed well even though for the operational reasons, let alone the investment ones...
Hence, many companies can practically benefit from this lesson in regard to their pricing strategy and their operational costs. And a property's operational cost, especially when the company has only one property seems to be of prime importance. The obvious consequences of not being able to cover the rent or utility bills (not to mention wages) should always be in the mind of those responsible for the pricing policy in relation with the viability of a company.