Do you know your business? - Irish Times 5 March 2010

Managing Director Regina Mangan was interviewed by Olive Keogh of the Irish Times for the popular Innovation section of the newspaper. Below is the interview which features in the second half of the article.

To read the full article click here

LAST YEAR Regina Mangan took one of the toughest decisions of her commercial life. She stopped working with one of her companys largest clients because she could no longer make a sufficient margin on the business. “We had already reduced our fees by 20 per cent and were subsequently told that we had to cut them by a further 30 per cent or we would lose the business,” says Mangan who set up her property rental and maintenance company, bookaroom.ie, in 1995.

“We had been working with this client for nearly five years and it involved a significant portfolio of properties,” said Mangan. “Initially it was very good business but after a few years there was an expectation that we would reduce our fees. Eventually that expectation was unrealistic. We were effectively being asked to provide the same service at half the price. It was a tough decision to walk away but when we evaluated the cost of servicing this client and looked at it versus the cost of other clients we decided we would be better off.

Mangan has been using the support of professional mentors, whom she first sourced through FÁS and her local enterprise board, to help develop her business over the last three years. “I’d urge companies to tap into the reserves of knowledge that are out there especially in the current climate,” she says.

Despite the recession, bookaroom.ie invested heavily in new information technology and software last year. “It has transformed our business,” says Mangan. The new system allows Mangan to see exactly who are clients are and to target her advertising and marketing accordingly. “I was quite surprised to discover that the largest national group to whom we rent is Slovakian and the majority of our renters are male in the 24-32 age group,” she says. “Knowing your market that specifically means you can be a lot more selective about where you spent your promotional budget. “One of the things we have done is analyse exactly how much time it takes us to secure a letting versus the value of that letting. “This is crucial in determining fee levels. If you dont have a good grasp of all your costs you will end up losing money.”

Posted by Regina on 27/05/2010