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Commission award for Rawson franchisee

12 Aug 2013

To the surprise of many franchisees, Schalk van der Merwe of Somerset West won the Rawson Property Group’s prize for the highest commission fees earned in the Western Cape in November 2012 to April 2013.

Schalk van der Merwe of Rawson's Somerset West franchise won the Rawson Property Group’s prize for earning commission of up to R42 million worth of sales.

The reason for the surprise is that with many franchises, the franchisee does not sell property and therefore cannot earn his own commission.

Van der Merwe says at Rawson Somerset West, they believe it's good for the franchisee to sell because it keeps him in touch with the market and puts him in a better position to advise and support his agents.

Working with his father, Johann van der Merwe, who established the franchise in 2006, he is able to devote 70 percent of his time to his own sales, leaving the remainder of the time for support to his agents and the running of the office.

The award was based on Van der Merwe achieving R42 million worth of sales in the period mentioned. The highest priced property sold during this period by him was a five bedroom, mountainside home in Spanish Farm, which sold for R6.5 million. The least expensive property he sold was a three bedroom townhouse in Somerset Ridge, which achieved a price of R825 000.

Van der Merwe says his sales success proves the value of establishing a loyal client base and building a reputation made up of reliability and trustworthiness.

“In this franchise, we try to inculcate the idea that the initial meetings and initial deal are merely the first step in establishing a long term relationship with the client." He says that focussing on this aspect has meant that just under 50 percent (48 percent in the period referred to) of his sales leads come from clients with whom he has already worked.

Such clients may be upgrading or downgrading, or buying additional property. They may also be moving into the commercial field, but in most cases they will recommend him to their friends. Another big advantage of establishing a good reputation is that it means that it enables him to work only on a sole mandate basis.

Van der Merwe adds that a high percentage of today’s buyers in Somerset West are from Gauteng. They move to the area because of the lifestyle, the low crime rate and the quality of the local schools, such as Somerset College and Paarl Valley. Also prominent among buyers these days, he says, are Germans who currently own 13 percent of the residential properties in Somerset West today.

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