FIDI C O N F E RE N C E IN WITH THE NEW The FIDI Academy offered a taster session at the Conference to introduce its new three-day seminar on destination service provider (DSP) services, which will soon be part of a specific FIDI Quality Seal, similar to FAIM. James Richards reports Workshop participants in action, under the watchful eye of Sara Lyrum, Academy trainer F Trainers encouraged students to determine their strategy whether to embrace DSP or not and prepare staff for changes if necessary W W W. F I D I. O R G FF291JunJul19 pp46-47 DSP workshop.indd 47 IDI Secretary General Jesse van Sas opened the FIDI Academy taster session by explaining why FIDI is now moving into destination service provider (DSP) services. He outlined how relocation companies emerged over time to compete with moving companies, offering specific services such as support with visas, immigration, housing, schooling and tax assistance services which had previously been supplied by small local firms. He explained how relocation companies were initially focused on housing especially in the US before broadening out to offer additional services to corporate customers, placing themselves in between traditional FIDI movers and their corporate customers. While movers still had access to these customers, maintaining that relationship became more challenging. Relocation companies brought something new to the market: compliance transparency and increased competitiveness. For the first time, moving companies felt they were becoming less important in the eyes of customers. Movers, being under scrutiny and constant pressure to lower rates, began to look for diversification. They found this in DSP/relocation services and incorporated them into their business models. Today, more than 60 per cent of FIDI members do this, to avoid being left behind. Now FIDI is introducing a quality certification for DSPand associated FIDI training to add value to FIDI andto help Affiliates maintain a leading position in globalmobility. DSP certification will be rolled out by the end of the year. It will be optional, user-financed, for FAIM-certified companies only, and will cover the basic services, at first. The FIDI Academy trainers, Andreas Eibel, Alexandra Schmidt, Kim Ngoc and Sara Lyrum are actively working on the development of a three-day seminar. At the end of the training programme, attendees will have a full understanding of: the different types of services available; those linked together; the types of customers; the attitude and etiquette of customers from different cultures; the costs associated with a relocation business; how to calculate their profit margin; and the components of the new FIDI Quality Seal. Some of the services that will be covered include: departure services; needs assessment; home and school searches; area orientation; temporary housing; and help settling in. Students will go through case studies to help them identify who the client is, apply best practices, manage expectations and calculate costs. Part of the syllabus will involve meeting some big consulting companies, visa and immigration officials, and meetings with international school directors. Van Sas explained the cost structure of DSP services, and observed a common misconception that treats DSP as a side activity from moving, rather than giving it the specific financial attention it deserves, which can result in negative margin creep. It was explained that, while bundling services allow you to sell additional services to your client, increasing turnover, the profit margin is lower than if you were to sell each service individually. When calculating your gross margin, Andreas Eibel, FIDI Academy trainer, advised attendees to: l Remember that relocation costs are based on time l Choose between a costs-marked-up model, or a costsplus-management-fee model l Calculate actual time spent on the services l Include any other direct costs l Account for overhead charges and profit in the mark-up on management fees l Consider that, contrary to moving services, relocation comes with high overhead/internal costs The trainers concluded by encouraging students to determine their strategy whether to embrace DSP or not and prepare staff for changes if necessary. 47 10/05/2019 17:08