Note: 516 people are registered for this LS product launch webinar tomorrow. We've rented a studio in NYC and are pulling out all the stops for the launch of "AutoPilot".
Something has become clear to me.
People blame a lack of profits on a lack of revenue... and a lack of revenue on low average rents in their portfolio.
But there's a simple test to understand how aggressive your fees are.
It's called RPU Aggressiveness.
Revenue Per Unit / Average Rent = RPU as a % of Average Rent
RPU of $250 / Average Rent of $1,750 = RPU Aggressiveness of 14.2%.
Why does this matter?
Because it cuts through the noise of market, door count, astral sign, etc.
See for yourself (From the NARPM Financial Performance Guide).
"The data generally bears out the conclusion that where average rents are under $2,000, the most aggressively priced companies are charging roughly between 15-24% of average rent in total RPU. In areas where average rents are over $2,000, the most aggressively priced companies are charging between 10-13% of average rent in total RPU." - Page 27 of the FPG.
This is the test to understand where you stand on pricing compared to your peers.
In summary, your geography and asset class does not have to define you.
Taking off to NYC! 🛫
P.S. - Yes, the silicon valley bank meltdown was epic to behold. No I don't have a hot take beyond reminding you the best way not to become insolvent is to generate positive free cashflow each month.