Often referred to simply as ends (that
is, each transaction has two ends, one
listing and one selling; a transaction
involving one salesperson with both listing
and selling portion is referred to as
getting both ends or double ending), revenue
units are utilized by some brokerages to
accompany budget figures and gain a more
meaningful sales performance overview. They
can also be effective in evaluating overall
salesperson activity. Revenue units are
normally tallied as follows:
EVENT
REVENUE UNITS
Single
Listings Sold
1
Single Sale
1
Double End
Sale (Listing and Sale)
2
Revenue units have proven very effective
in evaluating activity compared with
traditional methods that rely on sales
volume. Sales volume comparisons are
somewhat awkward as there is no universally
accepted method of calculation and rapidly
increasing prices can distort the true
position, e.g., increased volumes are not
due to market penetration but merely the
sale of expensive properties. Market share
can actually be shrinking while sales volume
is increasing. By tallying units, brokerages
can gather valuable year-on-year information
concerning amount of activity generated and
not just dollar volume.
The revenue unit is preferred to
calculations based on total number of
transactions as this approach ignores the
importance of in-house (double end) sales.
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