The boss of Purplebricks has dropped a large hint that Purplebricks is going to introduce a new pricing model.
Chief executive Vic Darvey told the Press Association: “We’re going to start to look at how we evolve our pricing over time because our pricing has been pretty much the same for five years.”
He said: “With any successful business, you need to adapt and evolve your pricing strategy . . . In certain markets, in certain pockets of the country where houses aren’t moving quickly, there is a moment of hesitation from customers saying: ‘I know I can save £10,000 but actually do I want to commit to an £899 upfront fee when my house may not sell?’”
EYE understands that Purplebricks will be introducing a no sale, no fee fixed price of £1,995 including VAT, probably in the New Year, with the commission structure for Local Property Experts changing.
We understand that there will still be the pay upfront option, with this likely to go up by around £100.
The firm currently charges £1,399 upfront in London and £899 elsewhere.
Darvey also told the Press Association that Purplebricks has made mistakes: “We were incredibly distracted by overseas expansion. We’ve admitted we made some mistakes.
“I think we’ve been really clear in admitting that we’ve made some mistakes and we need to learn from those.”
Darvey said that Purplebricks is aiming for 10% market share within five years, adding: “You’re going to see high street agents continue to close more stores, and you’re going to see them move more to a hub model, where geographically they’ll start concentrating themselves, because it’s going to be possible to continue to support the overheads that are required if people are moving online.”
Darvey said: “It’s really important now that we become a brand that is famous for exceptional service, as well as category leading fees.”