Delivering value propositions

Mike Pero Mortgages, one of New Zealand's pre-eminent mortgage brokers, was established in 1990 and adopted a franchise model in 1998.

Such was the success of the franchise operation and the management structure put in place to support the franchise owners that in 2003 the company was crowned Supreme Award Winner in the New Zealand Franchise Awards.

The business model is based on a strong win-win concept for all parties. Clients receive independent lending advice, product information and home buying administration services with no fee payable by the client for the broker's service.

Banks and lending institutions benefit in terms of reduced internal administration and having their products represented in the home buyer market at the point of purchase. Through its cost-effective and customer-driven channel, Mike Pero Mortgages is able to deliver significant volumes of mortgage loans to the banks and lenders. It is a powerful value proposition.

"The franchise owners are truly motivated, the more business they write the more their franchise income and capital value rise. The franchisees are earning outstanding incomes and when the franchisees do re-sell their businesses they get an extremely good return on their investment.'' says Mike Pero.

Auckland has 16 franchises, Christchurch 9, Wellington 5, with other franchises in Whangarei, Hamilton, Tauranga, Hawke's Bay, New Plymouth, Palmerston North, Marlborough, Nelson, Queenstown and Dunedin.

Considerable opportunity exists for new entrants to the franchise particularly in the Auckland market.