Customer stickiness
- Online / email – cancel an app , send me an email to breakup with me.
- Phone call –
- In person
- Physical effort – moving apartment / changing mortgage company.
- Physical rigger and money. – moving out of apartment.
- Financial risk / penalty – LO changing companies.
Business stickiness
- Relationship – Mortgage biz can be “stolen” if boss exits. It’s a relationship business.
- Hard asset – apartment complex, can’t be stolen. RV park lots, can’t be stolen.
- Longevity of client. Mortgage is transactional.
Barrier to entry
- Capital
- Effort – mortgage is effort
- Knowledge
Complexity of business.
- Mortgages are hard.
- Propane is easy.
Hassle
- Lots of employees
- Need skilled employees
- Very low skill level / not reliable – think HVAC business or painters
- Lots of capital calls
- Compliance
Farming
Multi family
Storage units
Rv park
Paper lots
Car wash