Online agent eMoov is to raise its prices – and is currently running a promotion on its website, encouraging sellers to list now.
A notice on the eMoov website is inviting sellers to list now before its prices rise, warning: “Price Freeze – Avoid our upcoming price increase, SAVE £100 and get FREE Premium Listings!” The notice says sellers can save £100 by listing for £579 now.
The current charge without the discount is £679 but eMoov founder Russell Quirk told EYE that the new fee would be higher.
He said: “We have raised our core fee five times in the past four years and that’s very much part of our strategy, hence we will be raising our pricing again soon and as per the ‘heads up’ on our website.
“We launched in 2010 at just £295 and therefore we are now twice that price.
“Our intention has always been to demonstrate that we are not just better value than the high street but that our proposition is better in its customer service demonstration too.
“Those in our sector that can also show such superior service levels should be able to raise prices too, albeit that some will raise prices without having built those firm foundations. And that won’t work for them and will see them pouring more and more money into ever higher and more unjustifiable CPAs.
“eMoov and the best in the online/hybrid sector can justify higher prices in exchange for better service.
“The converse applies too in that traditional agents that continue to charge high fees for poorer service, have a limited shelf life now given that even as the online sector raises costs, the high street are still several times more expensive. The consumer has the choice… More for less. Or less for more. I think we know how that plays out.”
Quirk declined to give a new figure or date for the changes.
Separately, House Shop founder Nick Marr has warned that online operators will need to raise prices to make a profit.
Marr, whose private sale by owner site the Little House Company was reinvented as the House Shop to include estate agents’ listings, also said that many of the larger online operators are yet to make a profit and may need to consolidate.
He told the Financial Times that this could be an issue as sellers may be less willing to pay higher amounts upfront.
Marr said: “A lot of these guys are not making any money. How much does it cost to get each customer when you are using TV ads and so on?
“They are going to have to put their prices up, and when people pay upfront, if you’re asking for £1,000 or £1,200, they might be uncomfortable with that. I think they are going to struggle.”
In September Purplebricks increased its charges from £798 to £849 and from £1,158 to £1199 in London.
Addressing the issue of online agent profitability, Quirk told EYE: “The ‘profit’ debate is for now a misnomer. It’s hard for some in our industry to comprehend the concept of growth businesses, I know, but the online agency sector is not a short-term lifestyle play and is not about how much per month you can afford to pay for your BMW.
“This is about three or so disruptive players taking a 50% chunk of the estate agency market eventually and how much that makes such a business worth. It’s what’s happened in insurance, travel, comparison websites, recruitment, consumer goods and, soon, banking etc.
“There’s a bigger picture which the incumbent critics are not seeing.
“That said, will online players consolidate to get there quicker?
“Yes, but in my opinion there’s not many players in our space that would truly represent consolidated value. Some businesses combining with other businesses might simply make two poor executors twice as undesirable.”
First crack in the dam. Expect the deluge any time in the next twelve months as all the other pile it high sell it cheap merchants realise they cannot defy the laws of financial gravity and have not got deep enough pockets to build the pile sufficiently high. The clear out will come all the quicker if the Brexit-affected market significantly stalls.
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Looks like purple bricks will win this space and then be on watchdog for most of next year when people realise theyve been had by slick marketing with no substance.
MONDAY is national click the adwords day of online agents..everyone join in. be fun.
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Love Quirky’s enthusiasm, my Facebook feed was flooded with emoov’s ads over the last few months with their ad. I think they are targeting the wrong people, burning money needlessly (I would rather use PB). Funnily I was also spammed by some new online players as well… eagle eye property online services etc… anyone heard of them? The point is, barrier to entry is 0. Any idiot can start an online agency (it’s not a disruptor), and they do. Quirky’s bigger picture point may be right, but unfortunately I don’t think they are one of them.
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Must have spent all Christmas trying to dream up new marketing and advertising to get some new business in. Not very imaginative! Guess they are being squeezed by the bigger players in their sector!
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“The current charge without the discount is £679…..We launched in 2010 at just £295 and therefore we are now twice that price.”
Figures really aren’t your strong suit are they Russell?
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Is it me or is he boasting that they have had four price increases?
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“A notice on the eMoov website is inviting sellers to list now before its prices rise, warning: “Price Freeze – Avoid our upcoming price increase, SAVE £100 and get FREE Premium Listings!” The notice says sellers can save £100 by listing for £579 now.”
This presumably being the notice to replace the one stating “£100 off. Offer running for a limited time only.”
At least MFI changed the figure from “sale” to “sale” – fooled some of the people some of the time.
Let’s see what they are charging in 12 months. MY guess (GUESS, Mr QUIRK – there’s no stake here for you to claim at a later date…) is £499 tops.
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To all “real” estate agents. Sit tight on your fees folks. The on-liners will close the gap for us beautifully.
Truth is if all it was about was putting property onto Zoopla and RM,with up front fees, no staff, no infrastructure, and no interest if they sell the properties, then if there were enough listings, they might get by charging a few quid.
However,they are all rapidly learning:
i) they need to make profit to succeed.
ii) public want service and service needs people ( good people) and good people cost money.
So the disrupting hype of the on-liners is slowly loosing its power.
However forgetting the the on-line revolution, the public today are more demanding and expectant than ever,so us “real” estate agents need to be on our metal to keep raising our standards,otherwise we will be left behind in the market place amongst ourselves.
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The figures to December 2015 appeared to be submitted on the afternoon of the last day possible in September 2016. They were a confusing and unconventional set of accounts that I struggled to understand so forgive me if my interpretation is incorrect.
The money pumped into Emoov in 2015 as investment, loans or crowd funding was enough to set up and kick start a significant company. By the end of that accounting period it seems that less than half the money raised was left. Taking into account the accounting period for that set of accounts was not for a full 12 months it was possible to calculate that expenditure exceeded income.
Two key and significant members of staff have been dropped from the payroll since which precludes an accurate estimation of fixed costs compared with quite accurate tracking of listing numbers (Hands up those who thought monitoring portaljuggling was just about CPR’s, it gives me a detailed insight into everyone’s activity) but I would seriously question whether this increase in listing fees is enough.
Please bear in mind my obvious ignorance but the current register of available properties for the firm appears to be quite a long way short of the total I would expect to see if normal agency KPI’s are applied.
Whacking the price up now creates an embarrassing conversation; why now? A price rise flies in the face of every bit of “Cheap is good” advertising and PR. It is a U Turn, an admission that an estate agency business has fixed costs which have to be covered before there is profit.
What we are seeing here is the end of disruption; the savings made by not having an office premises does allow any firm to operate with an un-economic fee structure. The loss of the 24hour 365 subliminal presence of an office and boards and #local awareness of trusted known staff was negligently overlooked when the disruptor model was conceived and this is the first and from a personal point of view a very welcome , nah nah na nah nah, two fingered, **** a snook, told you so sign that the disruption myth is broken
My opinion is that this is too little, too late and the firm will only continue to trade if there is further external funding. I won’t be investing but I’m sure there will be people who are stupid enough to think fair, honest, #local, traditional, estate agency can be replaced by the polar opposite of all that.
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**** large male chicken that likes to make a big noise in the morning.
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Russell is not alone in raising his fees or showing eye watering losses with this business model. Perhaps the “savings on high street premises” are not as great as they had calculated or told investors and the public?
That said, 2016 was going to be “the turning point” – (R. Quirk) for call-centre agents with predictions they would be well on their way to 50% UK market share by now. Figures in the FT* yesterday by analysts UBS show a total UK call-centre market share of just 3.4% (a drop from last years claimed 5% by and for the sector at the time)
* https://www.ft.com/content/36e9a5e2-78c9-11e6-97ae-647294649b28#myft:saved-articles:page (Paywall)
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Interesting that Mr Q brings up the issue of ‘market share’.
I seem to recall him claiming that ‘call centre agents’ would have 20% share of the market at some point in the future. When was that exactly – have we passed that point?
If a 20% market share for ‘call centre agents’ were to pass, I think we are miles away from that point by the way, would Mr Q like to tell us what his fee would be then?
The hype about his fee and savings is just that, because it is all he has got whilst he attempts to get a foothold in the market.
We all know that the moment they feel they can charge more they will. As an example you only have to look at Rightmove’s pricing now compared to 2004. When a business can charge more for it’s service it will because it can.
Average revenue per advertiser:
2004 – £117
2016 – £830
Number of customers:
2004 – 7,570
2016 – 19,981
Why are eMoov’s fees going up now.
1) They are still not making a profit.
2) They are currently taking on less instructions so need to lift the ‘average order value’ to stand still.
Smoke and mirrors and PR guff!
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It is helping relieve the symptoms of the newly discovered ‘commisery’…. 😉
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“Less for more. Or more for less”
I hate to be pedantic, Russell, but what about More for More?
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Belching in to action with a press release after a well deserved spell in exile our gob on a stick is back and at it……….and I’ve changed my mind on this lad, I don’t like him, I flippin’ love him.
He’s getting madder as the years pass, he’s never made a single prediction that’s come true but keeps making them, he’s had a kings ransom from a number of poor souls in cash which he’s promptly spent on……well, I’m assuming sweets and Tizer or sponsoring his pet elephants coke habit, his market share has been static at best, he changes tune like a tanked up fiddler and is ridiculed by pretty much everyone but lord above I love him because he does it all with a bit of gumption and really does believe in himself.
Anyway like those DFS Sofa adverts that used to tell us we could save £*** that got changed to save before prices go up / post sale prices here we have emoov doing the same, be with nteresting to see when the higher fees do come in?
Jonnie
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” sponsoring his pet elephants coke habit” Comment of the week!
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Tepilo also raised their fees 30% in the New Year.
Emoov, Teplio, etc. have built their businesses on being cheap. What’s the USP now?
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I can tell what it isn’t – better than anything on the high street.
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‘Tepilo also raised their fees in the new year’ Well spotted Keyser!!
Had a very brief glance and there most used package is now £895 ….but an extra £360 if you don’t use their conveyancing service, for which I guess they charge you a lot more for than your own choice. So the real fee is £1,255 and should be quoted as such….hmmm…ASA? You also have to pay whether you sell or not.
We all know a bird in hand is worth two in the bush…..so in theory my ‘no sale no fee’ should be £2,510 or less to be competitive with their ‘you will pay whatever the result’ fee……. and my average fee is. Now all we need is them to declare their ‘listing fee charged to successful completed sale ratio’, multiply their £1,255 by this and we have a truer comparable picture.
And on top of this I guarantee 100% that I will put in far more time and effort to give a more personal service and to achieve a better sale amount/completed transaction for my vendor.
Why would anyone want to use them, compared to a traditional agent?? Only those who are duped by misleading figures in marketing and advertising, I guess!!!
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2 bit chancers always get busted sooner or later…
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EMoov ………….who are they ? My own prediction for 2019.
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Property Peep – Don’t you mean ‘Who were they?’
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“Exactlyyyyyyyy”
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It appears that those ‘chancers’ are beginning to realise that full service, branch based estate agency, in the average and majority market in the UK is amongst the best value in the World.
It simply cannot be done cheaper and make money? Example UK average fee 1% ish. America 6% ish similar to many parts of Europe.
PB ‘investors’ appeared to subsidise every instruction in their last financial year to the tune of £1,800? Thereby, actually costing them close to £2,700 per listing…..far more than the average fee in my area.
Is it time the portals realised that stabbing their their traditional clients in the back by allowing these on line companies to promote their cheap fees via email alerts to those traditional agents existing and future clients may be a very bad move? Particularly, when their funding runs out or will these portals then pounce and buy one or others.?
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http://www.rightmove.co.uk/estate-agents/agent/Visum/Nationwide-35298.html#ram
Another fine example of what you are saying Thomas….I thought Rightmove weren’t going to allow this kind of advertising of cheap fees?
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And this is not by email…this is on the main rightmove site!!!
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Good spot Agent V.
Independent agents really now ought to foresee that the portals may soon cost agents a lot more in lost business, on top of their huge subscriptions?
Bear that in mind when RM demand further price increases?
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We cannot allow this to continue. We have established Rightmove by our commitment and our content. It is now being used against us and we are prepared to allow it to happen. Somewhere along the line we all need to make a stand. We whinge on this forum (which is a great forum) but we need to get our feelings in front of Rightmove. Thoughts???
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crooki…..join our movement if you are interested…let us know how we can contact you or find us on twitter.
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Also worth posting your point on twitter… #conmisery …established by PeeBee
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Interested to hear there are others trying to biting some pressure onto the large portal sites. Thanks Guys. Could someone contact me via richard@crookandblight.com.
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Not done them much good. Going since 2004, sell your home from £99. 89 listings ppppfffftttt !!
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Blue…agreed, but a potential customer of mine used them after I had given all the advice on price, marketing, strategy everything. They even nicked and used our floor plan which we had created to sell the property a few years ago.
It sold, as any property correctly priced with the right strategy will in our area at the moment, and it doesn’t seem to matter that I reckon I would have achieved five to ten thousand more on the sale price. They cost me at least £1,750 lost fee and the other local potential referrals that matter to me, but they don’t even care about.
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It’s a business not a charity. Some clearly seem not to realize this.
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Have you ever paid a charity £1000 plus per month? Do you know any other business that makes 75 pence profit on every pound of turnover but is still not satisfied?
Talking of charities would you be happy if you made a charitable donation and that charity sold on you details to others?
No? Nor were the Government who acted to prevent such practice.
Isn’t this a similar scenario to what the portals are now doing with the data drawn in from their own paying members listings?
I pay portals lots of money to advertise my properties not to use my listings to sell additional prospecting products to the likes of those on line only competitors?
If your an agent, clearly you do not realise the impending consequences of such a betrayal of those agents who paid for and established those two main portals?
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1stTimeBuyer has previously owned up to being a shareholder in at least one of the two big portals so has more than a vested interest in that charitable donation you make every month…
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Looks like i spoke too soon yesterday regarding loudmouth being quiet recently!
Ah well just have to wait for the doors to close.
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You must have had some kind of premonition!! I still think all the ‘online only’ fraternity must be in an emergency secret meeting somewhere this morning as there are hardly any dislikes of any comments on this story. Where have they all gone?
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FY information Mr Thomas Flowers is absolutely correct.
The sooner these muppets in call centres realise what the real job is, the sooner they will either raise their fees to pay for the actual work required or pack up and leave the real professionals to do what we have been doing for centuries.
Of course raising their fees means they cant compete
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I was thinking of branching out into private surgery to diversify in the current climate. As NHS waiting lists get longer, I think there will be huge demand. I have some very basic knowledge of anatomy and a mate of mine says he knows how to get anesthetised quite easily. He does it down the pub regularly. How hard can it be to make wads of money?
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Have you considered specialising ?
Good money in Organ Donation.
I should know, been doing this as a side line for years.
You should see my marketing campaign.
“Property Paddy estate agents- 2% fees plus VAT or pound of flesh” . in the long run still cheaper than a call centre agent too !
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And I’ve got more to sell since my ops!!
Weighed myself just after Christmas and suddenly realised the titanium implants I had last year weigh over a stone more than the bone they replaced !!!
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Isn’t time we all stopped referring to PB and others as ‘online agents’, ‘estate agents’ have traditionally taken their fees when the sale has completed. PB and others are in fact listing agents, they charge up front and bluntly don’t care if they sell the property or not!! Lets start telling the public the difference!
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Londoneye…good call. be good to contact you.
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Also worth posting your point on twitter… #conmisery …established by PeeBee
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“Price Freeze – Avoid our upcoming price increase, SAVE £100 and get FREE Premium Listings!”
Put another way …. only if you want to use Emoov! Sensible consumers would see this for what it is and if they are that interested in saving fees would go to the other bucket price portals or that so called cheapest can’t make it work after saying they can do it better than high street agents who have a presence. The wheel is coming off the re-invented dot.com boom of the 1990’s. The only person that cheap portals have ever fooled are themselves and their investors. High Street is till here and thriving.
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As a small independent working 7 days a week to keep my staff in their jobs and my modest business afloat this is what I do to keep the call centre agents at bay in my area.
If us small independents all adopt these ‘disrupter’ strategies we can stop the call centres getting market share, or ever being profitable. That way we can keep our businesses and our staff in their jobs.
When a call centre lists in my area I immediately write to the vendor and offer a High Street presence, local knowledge and personal service for the same fee. I remind them that they have 14 days to come out of their contract with the call centre. Whilst this might not make you any money its about keeping your market share. I have taken instructions from the call centres using this strategy.
If strategy one doesn’t work I have set up accounts with the main call centre agents and I book viewings at their listed property. I ask friends and family to do the same. These bookings are of course ‘no shows’. I sometimes book second viewings as well. After 3 of 4 ‘no show’ viewings I write to the vendor again to offer my reliable services, where all viewers are contacted and screened.
In parallel with action one and two I use my dummy email accounts to book Valuations with the call centre agents at random addresses to waste the ‘local’ account managers time and make them unavailable for anything else.
Another strategy is to contact the vendor when you see the call centre reduce the sale price. I highlight the loss of value and the fact that a local agent knows the real value of their property and what people will pay for it.
Whilst these actions do take up time these companies are trying to destroy our businesses and our livelihoods – ‘disrupting’ them from getting market share is worth it in the long term. The more of us that implement these strategies the better. Protect your business – Act today.
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If you’re going to fight – stick to Queensberry Rules – NOT germ warfare.
Surely you are better than that, Gameon.
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The call centres are already breaking the phantom ‘rules’ at will:
Advertising they are ‘local’ when they are not – Yopas call centre is in India
Saying we charge 1.64% plus VAT when we don’t…you can save £5600… when you cant
Dedicated account manager when you haven’t
Scraping our name on Google when a client searches for us and the click through goes to their website
etc etc
Why compete with both hands behind your back?
Your choice but my business is worth fighting for
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