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Purplebricks prepares to radically change its fixed fee model

first_imgHome » News » Agencies & People » Purplebricks prepares to radically change its fixed fee model previous nextAgencies & PeoplePurplebricks prepares to radically change its fixed fee modelCompany’s CEO says it is looking at several options due to launch this Autumn including dual fees and split payments at instruction and sale.Nigel Lewis3rd August 202002,333 Views Purplebricks has announced that it is to reduce its up-front fee of £999 this Autumn following an in-depth pricing study, CEO Vic Darvey has revealed in the hybrid agency’s annual results.He also says the company is looking at splitting the payment between listing and completion, lowering the cost of instructing the company but raising the overall fee.“Reducing the upfront fee will reduce the barrier for many customers in instructing us – while higher fees on completion will allow our LPEs to earn more from each sale, ensuring our self-employed model will not only remain sustainable but become more attractive to the best talent in the industry,” he says.Anthony Codling (left) CEO of Twindig, says: “Is ‘pay now perhaps sell later’ coming to an end?“Paying whether or not you sell was always going to be a hard sell in a tough market; Purplebricks instructions fell 23% in the year to 30 April 2020 that’s a very significant fall when the majority of that year was not impacted by COVID.”Purplebricks has put a brave face on its latest results which, as well as lower instructions, reveals declining revenues and profits in the UK.The company’s revenue per instruction was the only bright spot in its financial and annual report which covers its trading during the 12 months to April 30th. This increased by 12% to £1,394. But otherwise revenue dropped by 11% and EBITDA by 53% to £4.2 million.On a group level, the company continues to lose money and its latest results show a loss of £19.2 million as the closure of its US and Australia operations continue to weigh down on its finances, although if its overseas costs are taking out, it only lost £1.8 million.The company is also racing through its cash reserves – which dropped from £62.8 million to £30.1 million.   Purplebricks Anthony Codling vic darvey August 3, 2020Nigel LewisWhat’s your opinion? Cancel replyYou must be logged in to post a comment.Please note: This is a site for professional discussion. Comments will carry your full name and company.This site uses Akismet to reduce spam. Learn how your comment data is processed.Related articles BREAKING: Evictions paperwork must now include ‘breathing space’ scheme details30th April 2021 City dwellers most satisfied with where they live30th April 2021 Hong Kong remains most expensive city to rent with London in 4th place30th April 2021last_img read more