When you’ve analyzed a portfolio for revenue potential and invested a sizable chunk of your resources in its growth…
There’s nothing more disappointing than seeing poor profit margins for all your hard work.
You believe in working smarter, instead of harder.
But instead of enjoying the returns of your senior living investment, you’re spending your time troubleshooting why your properties aren’t producing the revenue you expected.
Whether your properties have a subpar net operating income or a significant loss, at Bild & Company, we’ve seen enough senior living portfolios to pinpoint three common reasons you’re struggling to achieve robust top-line revenue.
Keep on reading to discover what’s holding your investment back from better returns…
Profit Margin Problem #1: Poor Processes
Filling your senior living apartments and driving occupancy isn’t an exclusive art of your sales and marketing department.
Increased census is the direct result of following industry best practices and proven processes for driving growth. And if your portfolio is experiencing poor profit margins, more than likely your communities…
- Are allowing leads to slip through the cracks.
- Don’t have or don’t execute a clearly defined system for improving inquiry-to-tour metrics.
- Fail to consistently follow up with leads.
Unless you have a clearly defined process that systematizes and standardizes how you drive growth, your investment will suffer from poor profit margins.
Profit Margin Problem #2: Poorly Articulated Competitive Advantage
There’s a reason your senior living investment has a high growth potential. Perhaps it’s your properties’ model of care, all-inclusive advantage, or unique culture.
However, if your communities are struggling to generate a return, here’s what you need to know…
All too often, communities don’t clearly articulate what makes them distinct—in a way that connects with prospects.
You need to carefully evaluate if…
- Website and marketing messages fall short of differentiation. Analyze if your efforts clearly communicate what makes your properties special.
- Conversations with leads don’t showcase how your properties meet the unique needs of future residents. It’s important that you evaluate the conversations your team members are having with prospects—both on and offline.
- Your portfolio is neglecting events that showcase your communities. Community events raise awareness about the key strengths of your properties in your local area. Neglect these, and your properties may leave revenue on the table.
- Community tours fail to leverage the strengths of your properties. Turn a critical eye to how your properties convert visitors into residents.
Profit Margin Problem #3: Poor Talent Decisions
In addition to a fuzzy competitive advantage, there’s another problem that creates poor profit margins and takes the wind of your investment’s sails: poor talent decisions.
Sometimes, your communities and teams have individuals who simply aren’t qualified to drive growth. (We analyzed the regional team of one client and found that over 50% of its team members needed to be replaced.)
Other times, you have talented team members who lack the support needed to increase occupancy, such as onboarding, accountability, or ongoing training.
However, it doesn’t matter if your investment is suffering from poorly trained team members or the absence of revenue-driving systems.
Bild & Company’s deep expertise in solving profit margin problems can empower your investment to generate significant returns. Discover how we’ll help your portfolio overcome obstacles and meet growth goals when you talk with our CEO, Traci Bild. Simply call 1-800-640-0688 and ask for Liz Simpson so she can schedule a time, or contact us online.