A commercial property owner in Westlands, managing a 12-unit office building, increased profit margin from 42% to 57% after implementing Royalmark's expense tracking system. The detailed expense reports revealed unnecessary costs and inefficiencies that were previously invisible.
The Challenge: Hidden Expenses
Before Royalmark, expenses were tracked manually in spreadsheets. The owner, Michael Omondi, had a general sense of costs but couldn't identify specific areas for optimization. Monthly expenses averaged KES 180,000, but he couldn't break down where the money was going.
Expense Tracking Reveals Opportunities
Royalmark's expense tracking categorizes all costs: maintenance, utilities, security, cleaning, repairs, insurance, etc. Detailed reports showed that security costs were 40% higher than industry average, and maintenance expenses included duplicate payments to contractors.
Cost Savings Identified:
- Security contract renegotiation: KES 25,000/month saved
- Eliminated duplicate payments: KES 15,000/month saved
- Optimized maintenance schedule: KES 12,000/month saved
- Total: KES 52,000/month (KES 624,000 annually)
Profit Margin Improvement
With monthly revenue of KES 480,000 and expenses reduced from KES 180,000 to KES 128,000, profit increased from KES 300,000 to KES 352,000 monthly. Profit margin improved from 42% to 57%—a 35% increase.
Conclusion
Detailed expense tracking enabled Michael to identify and eliminate unnecessary costs, increasing profit margin by 35%. For commercial property owners, expense visibility is critical for profitability.
