Purplebricks hints at introducing No Sale, No Fee, as it looks to ‘evolve’ its pricing

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.”

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25 Comments

  1. GPL

     
    Is Vic there…..?
     
    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…….”  
     
    ”Stores” Vic? Really?    
     
    No Sale, No Fee from Purplebricks? They can keep trying to mimic what a real Estate Agent does however Purplebricks are extremely poor imitators and most sensible Homesellers know the value of using a real Estate Agent. 
     
    Purplebricks LPE’s? …….brace for impact!
     
     

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  2. The Future Is Tech

    The funny thing is, the LPE’s will be the last to know of any changes and remain very vague.

    How else can Purplebricks recover from a crumbling business and build market share. Closing stores? Vic has zero idea what estate agency is.

    EYE understands that the fee will be £1995 – where did this statement come from?

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    1. Property Pundit

      Maybe to compete with YOPA?

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  3. Hillofwad71

    Yes that song Is Vic there? repeats in my head when his name gets mentioned which to be frank hasn’t been much !!
      The Invisible Man !!
       “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.”
     
      Bricksspeak  for Glass ceiling has been reached ,instructions in UK falling How can we increase revenue ? Bricks is a company which is fast running out of ideas ., Time for the grown ups at Axel to finally step up to the plate .
     
      Over in Oz  inventory has now dwindled to 282. However they still have a hefty team of 71 field agents  on the payroll In addition  to Head Office Where is the sense in that keeping it open ?They could “sell” the porfolio to,local agents who would be grateful to show their  skillsets and shut the whole operation down and cap the costs .
     
        Hopeless,helpless and hapless   

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    1. JVSOZ

      They had several offers and took none of them.

      I personally sent an email directly with an offer that would have saved them a fortune directly to Vic, to which he declined to reply.

      Purple Bricks operate with complete incompetence. I’ve never seen or experienced the likes of them before and doubt I’ll see stupidity quite like it again once they’ve gone.

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  4. Property Poke In The Eye

    If PB bring in a No Sale No Fee option, this could be the end of PB and it will never make money.

    In MY OPINION this could possibly mislead more investors to invest in a company which will never make a decent amount of profit.  On the same token this will put pressure on the weaker estate agents to bring down their fee levels.

    It’s going to be tough for EA for a few years.  So keep focused and keep positive.

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  5. smile please

    It seems they have tried the take on the world idea, realised the online thing does not work and is unsustainable. Now they are looking to replicate why high street is so successful and going onto  a ‘No Sale, No Fee’ option.

     

    Let me guess, the next stage is physical regional hubs?

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    1. smile please

      Any reason my comment was censored? You cant say it defamed an individual or entity?

      Far worse has been written by many more.

       

      Purplebricks asked you to remove it or you not happy with it?

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  6. Not Surprised

    Vic isn’t an estate agent and has never claimed to be and has an entirely digital background. That would explain the ‘stores’ slip up but in itself doesn’t mean he doesn’t understand the industry. More worrying for them is a potential situation whereby they could be going no sale no fee but unless they have the sales progression part managed super well then not only will sales fall through but private sales will go on (with their buyers) and they won’t know and not get paid. That is where their loss will be for sure.  I think it’s good to offer both options but their operations/infrastructure need improving to support that new concept.

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    1. ArthurHouse02

      Replace the words “More worryingly” with Hilariously

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    2. Property Pundit

      You’re going to see high street agents continue to close more stores
      Stores? How can you not call them branches or offices?

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      1. GPL

         

        Apparently LPE’s are now to be referred to as…..

        LSA’s

        Local Store Assistants!

        …….is Vic there? No! ……he’s just left the store!

         

         

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  7. GPL

     

    Vic? You do talk complete & utter b@llocks!

     

    ……”re 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?”

     

    Let’s run with my “Press Release” Vic….

     

    ”A large proportion of Purplebricks Homesellers will have any perceived cost saving completely wiped out by the poor sale price achieved by Purplebricks.

    The majority of professional High Street/Local Estate Agents will easily outperform Purplebricks and secure a much better sale price for Homesellers.

    In reality Purplebricks claims to be a one-size-fits-all operation which in reality fits no-one.

    The smart Homeseller knows the real worth of a real Estate Agent.”

     

    Stick to “Department S” Vic!

     

     

     

     

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  8. PeeBee

    ‘Chief executive Vic Darvey told the Press Association: “…our pricing has been pretty much the same for five years.” ‘

    Erm… I think not, Mr Darvey.

    As of 27 August 2014, your listing fee was £599.  Today, it is “from £899”.  That is an increase of 50.1% in 5 years – a percentage increase in fee which I suggest you will not find being levied by any High Street Estate Agent in the UK.

    Oh – and you also offered an “100% Money Back Guarantee” in those days.

    And “all of (y)our Experts NAEA qualified”.

    All that – only five years ago.

    How.

    Times.

    Change.

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  9. APE

    £1,995 for each property they actually complete on.  They will still offer upfront at £999.  Is this mathematical proof that they only expect to sell 50% of all properties they list?

     

    There are several reasons I’d be delighted if they make this change.

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  10. Hillofwad71

    The Wheels of Change and Musical Chairs  !!!

     

    Been following the fortunes of Conrad Pascal  a NewYork Realtor who worked for CWD  in E Anglia .ok up a post for Bricks in New York  last year  and has now taken up a position with Dwellowner,

     

    https://www.linkedin.com/in/conrad-n-pascal-3a61889b

     

     

    Dwellowner -the new rollout being undertaken by Eric Eckardt the former CEO of Bricks USA operation . He must have had a very relaxed contract with Bricks !!!!

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    1. cyber_truth

      It looks like most of the leadership team has followed Eric Eckardt to dwellowner. He was smart to exit when he did along with Lee Wainwright to break away from the Bruce brothers duo. https://www.dwellowner.com/about/

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  11. AgentQ73

    Imagine being an LPE and reading this, the prospect of going from an upfront fee to charging on completion will put a massive whole in their earnings.

    Cant wait to go after the stock that they list on no sale no fee and cant sell.

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  12. Property Pundit

    EYE understands that Purplebricks will be introducing a no sale, no fee fixed price of £1,995 including VAT

    Still £1,995 more expensive than Housesimple!

     

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  13. Thomas Flowers

    I remember reading that PB’s most active market was circa £300K that is a so-called saving of around £1,000 on a No sale, No charge structure not £10,000 unless they start to target those £1.2 million pockets?

    Why does their £300 advertised viewing charge not promote include VAT as it is a fee?

     

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  14. AgentV

    Obviously a no-sale no fee offering will attract the vendors who are possibly less motivated to guarantee they get a sale than those who have taken up the ‘pay whether you sell or not model’. This will mean a lot of work that their model is not geared up to provide, not least a fully comprehensive after sale service, which we all know is needed to make sure sales do actually complete.

    BSOS23PC

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  15. Ostrich17

    This could get very tricky for them – they will have to now make it crystal clear to clients that they have two different charging models and the difference between NSNF and PayAnyway with the chances of not achieving a sale. Failure to do so would lead to claims of mis-selling.
     
    How many vendors will claim they were not informed of the difference between the payment schemes ?

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    1. Hillofwad71

      You can just see it !

      Irate  Vendor

      Call to LPE

      Do you sell residential property?

      LPE Yes we do ,sir

      Irate Vendor

      Then why the  ****  haven’t you sold mine after 18 months paid up front.Not a sausage

      LPE Would you like to try our enhanced  bells and whistle package where you dont have to pay us til we sell

      Irate Vendor  How much is that?

      LPE £1995, sir

      Irate Vendor

      Slams down phone

       

       

       

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  16. M Barnard

    Watch this space! LPE’s will have their commission structure changed to be paid part up front and part on completion. Earnings will also depend on ‘add ons’ and which service (ie: paid up front or pay later) that they sell.

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  17. padymagic

    Isn’t “no sale-no fee” their advertising slogan for “commisery” ? You know when the agent charges lots for actually selling the property or gets nothing if they don’t.

    Isn’t that what they said at purplebricks?

    Well you know what I’m going to say to you?

    Whats their share price today? Lets have a look: Well it’s 128 at the moment.  I suspect it’ll bounce back to 500 as soon as they start selling property just like normal, old fashioned estate agents do.

     

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