Alert on software company failures

24 months on and the only suppliers not still here are the ones that Mr Goddard has closed down namely Core, and GMW.

• 03 November 2010 16:28 PM

Let's not forget the good old days of Traditional Estate Agency, long before computers, mobile phones, email and websites. These are all great tools - but should not be the "be all and end all" of Estate Agency. What really matters is good traditional service and the effective utilisation of modern technology.

• 17 November 2008 01:05 AM

I think EAT now has the capability and the visitors to get all agents together and create an action group to start their own portal! Actually that is a great idea come to think of it!! Seriously EAT, what do you think about starting your own portal, I am up for it? If all agents got behind it from the start and advertised it on all their newspaper adverts and letterheads then it would fly! What does anyone else think of this idea?

• 15 November 2008 06:58 AM

It is interesting to see that Mark Goddards comments have sparked such a flurry of comment especially from the new start up brigade. Having been in this industry for over 20 years, it is true that during both previous slumps that not only did it clear the high street of agents, but the number of providers of not just software, but boards, print, and legal services changed dramatically. The highs and lows of this sector does require resilience and Mr Goddards concerns probably have some foundations. The local nature of the agency supply chains lend themselves to small business startups which for the last 10 years has been great. The downturn as we have seen from the thread on portals with everyone of them under pressure does mean that agents need to hedge their bets. Only the best funded companies will survive.
Its not about product or customer service - its about the crude reality of paying the bills and the staff.
With technology and software now such a critical part of the agency process - the risks are unfortunately real.

• 14 November 2008 07:17 AM

I agree with Mark Goddards comments and believe that this could be a good thing for consumers - There's too much badly written software out there and recently there's been dozens of new offerings on the market from companies purporting to provide the best web-based systems. In truth, many of these new companies are just website designers who have had a go at writing an estate agency solution. Their designs and interface look nice but to an experienced business analyst (like myself) you quickly realise that the systems are badly written, consist of poor architecture and will not help your business in practice in the long term. Our own solution is web based but has been developed from a history of developing robust accountancy systems over the past 15 years. We have hundreds of system users but receive on average, one support call a day. If the software has been written well and it's intuitive to use there's no reason why a small company like ours with very low overheads cannot ride through this recession and steal business away from companies like Vebra & the like (which we do on a weekly basis). Terry Davies - MD Baysoft Software

• 14 November 2008 06:31 AM

Hi Peter,

I think something else to bear in mind is that there are probably a number of suppliers in the market who are actively looking to increase market share, ourselves included. This means that should any competitor start to struggle, we will be amongst those looking at buying up their assets. With a web based software product, a far smoother transition is possible - we simply import the data into our database format, advise you of your login details - and away you go. This can apply similarly to online and offline competitors. I do not disagree with Mark that it is sensible to reassure yourself of the stability of your provider's business model for one minute! Just that it is not necessarily a size issue. Martin

• 14 November 2008 02:20 AM

I was in same situation as Clare, worth talking to a number of suppliers about pros and cons of web-based.

• 14 November 2008 02:16 AM

I have always been a great believer that common sayings and phrases are founded in truth - How about the “bigger they are the harder they fall”. What I think agencies may wish to consider rather than the size of the Company, is whether that firm is "buying" clients on price at commercially un-sustainable levels, perhaps dropping prices to 20% of last years level may give a better indication as to the likelihood of liquidation.

• 14 November 2008 02:13 AM

Let me give Peter the reassurance he requires. TheBu2iness is web based and is the only technology product anywhere which allows the owner an on-demand data backup or download to any FTP location of their choice, free of charge. An agents data IS their business. Almost all of the customers moving to The Bu2iness are moving from Vebra products and we think it is absolutely mandatory that an agent have ownership and control of all his data at all times, without needing to contact his provider.

As far as overheads go, one of the biggest reasons that the whole world of business has been moving to web-based technology solutions (eg Microsoft's new Azure platform, Amazon Cloud Computing, Google Docs, Email and Calendar, Apple's Mobile Me.com all of which are web based) is because the hosting and serving costs are a FRACTION of the old fashioned, server-based software which is a thing of the past.

This is why The Bu2iness can afford to provide free services such as portal uploads, which the likes of Vebra could never do due to their onerous cost base. (Prove me wrong, please Mark Goddard or Stephen McClusky!)

Server based products are dead, dead, dead and anyone who buys one now is investing in the past not the future. Just take a look outside this industry and what the rest of the world is doing!

With regards to smaller software companies being more prone to the downturn, it is simply naive to suggest that any smaller or larger companies would be more or less affected by a downturn than any other size company. Ford and General Motors, 2 of the world's biggest companies are losing around $1bn a month each - so where does Mark's logic come from that bigger = safer?

Again - please feel free to show me some evidence that smaller = more vulnerable as I think you may find the opposite to be true.

Let's see who has the largest growth in customers of our products 12 months from now, Vebra or The Bu2iness - I'd be happy to take a wager!

• 14 November 2008 01:56 AM

I think Mark Goddard's comments are understandable in the current climate. Why would any business connected to property not be affected. Most of my suppliers are being affected. He raises an interesting concern on web based systems. I recently have installed Encore Live for the exact reason Mr Goddard flags.

• 14 November 2008 01:18 AM

Are Mark Goddard's comments offered as reassurance that they are a safe bet or, dare I say, is his insight due to the benefit of inside information!

I use a desktop based system and have been thinking of moving to web based. However, if a web based software provide closed shop would my data be accessible? Reassurance now required before I take that step.

• 14 November 2008 01:05 AM

I agree with the comments above we are a small company with small overheads but with leading technology that allows agents to add their properties once to their own website which is driven by our software then see their properties added automatically to over 300 websites worldwide. The software also includes the options to uplaod automatically to all the leading portals. Ask us for more details www.propertywebmasters.com

• 14 November 2008 12:05 PM

I think this announcement is more down to the fact that vebra have had around 500 offices close down since the start of the year.what they're banking on is that other providers are experiencing the same. The big difference is that the best providers look after their clients better and provide tools that can really make a difference in this tight Market.

• 14 November 2008 12:05 PM

Not at all. Smaller software solutions have smaller overheads. We at INEA have one of the most advanced mls solutions for UK agents and its only £40 pcm. www.inea.co.uk. Our software allows agents to list and run sales, lettings, new developments, commercial and overseas listings. You can create your own branded templates and share with other UK agents your listings, backed up by a very hi tech notification system.
We are also embracing, and developing solutions as yet unseen in agency. INEA is run by me: Trevor Mealham, I had two estate agency offices and a staff of 8. I sold up to develop INEA and have 24 years in agency behind me. So some of us smaller software house have a lot to offer. we are also expanding and taking on new staff.

• 14 November 2008 11:49 AM

It's an interesting approach to PR from Mr Goddard. However, you might equally imagine that largest and most established setups like Vebra have the highest costs to sustain and also the biggest income share to lose from the slump, especially if customers begin to look for more cost effective solutions elsewhere.

As a smaller (and more flexible) software provider, we are investing our energies into making sure our products are of excellent value to our customers - both to help them survive and to ensure we do :o)

Mark needn't worry, we'll be around for years yet!

Martin

• 14 November 2008 10:54 AM