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TODAY'S OTHER NEWS

Purplebricks for the high jump as it sponsors Olympics Team GB

Purplebricks is the “Official Estate Agent Of Team GB” for the build-up to and completion of next summer’s Olympics in Tokyo.

It is going to change the colour of its Sold boards to gold featuring the Team GB logo. 

No details of the cost of the sponsorship have been revealed but four years ago London’s Evening Standard newspaper reported Aldi’s deal as ‘Official Supermarket of Team GB’ for the Brazil 2016 games cost £6m to £10m.

A statement from the troubled estate agency says of the latest deal: “With Purplebricks selling three-times more homes than the second placed agent, a touch of gold will soon start appearing all over Britain’s streets.”

The company says the boards “also reflect Purplebricks own ‘gold’ from review site Feefo, which last month awarded the brand their ‘Gold Trusted Service’ award, for having held a customer rating of over 4.5 out of 5 during the previous 12 months.”

Purplebricks will also be mounting a PR campaign mobilising what it calls “the support of [our] own team of more than 600 local estate agents in a series of campaigns and initiatives under the banner of #TeamPB.”

This isn’t the agency’s first high-profile sponsorship: earlier this year it was the back-of-shirt sponsor of the Scotland national team throughout the Six Nations rugby tournament.

It also became the ‘major partner’ with a leading Australian rugby league team, Melbourne Storm, just weeks before the agency shut down its Australian business.

Vic Darvey, Purplebricks recently-appointed chief executive, says: “We are delighted to announce our partnership with Team GB. Purplebricks is a proudly British company and we’re excited about how we can bring support for our heroic athletes to the streets as we build up to Tokyo 2020.”

He continues: “This sponsorship was a natural next step for our business as, like Team GB, our ‘Team PB’ has the ambition and drive to win. We have hard working, experienced estate agents across the country - and we intend to use that local reach to move every community behind our athletes over the next year.”

Tim Ellerton, the commercial director for the British Olympic Association, says of Purplebricks: “Their visibility across the streets of the UK gives us a great presence as we build up to the Olympic Games and their innovation and customer focus makes them a perfect partner for Team GB.”

  • Andrew Stanton Estate Agency Insights And Strategies

    I am amazed that purplebricks will be looking to put any money into an Olympic vanity project when its market capitalisation is down by over 60%, its share price is only 20% of what it was at its height, all the Bruce clan have divested themselves of their shares, Michael Bruce has exited the company, Neil woodford’s equity company has been suspended and he is up before the regulators later this month.

    Add to this the closure of most of the overseas operation of the company and the fact that despite taking millions in upfront fees from vendors who failed to get a sale the company has yet to make a penny profit or return a dividend. So, the Olympic tie up is being funded not from profits, but by the 50% of vendors who continue to pay upfront for a service ... the successful sale of their property, which they will never actually see.

    At some point trading standards will scrutinise the business model and realise this is not an equitable situation. Maybe if axel springer take the company private, and change the model, maybe actually employing the poor long suffering local property experts, and maybe adding some sales people to actually *sell’ the property that is listed then purplebricks might survive.

    If the share price goes below 96p the original opening price which seems likely, I think that the falling share price will underpin the recent d decline of this dot com business. Which may well go the route of tepilo, emoov, (version-one) hatched, etc, all of whom ceased trading less than 12 months ago, and did nothing but burned cash and lined the pockets of the advertising and marketing industry, and created losses for many unlucky shareholders, and created hardship for those who were not paid salaries when some companies closed overnight, unlike the orderly exit of hatched, which had an enlightened management team who decided to cut their losses and focus on traditional agency, which they do so well.

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    Blah, blah, Beige!!

     
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    Wonder if they'll be paying the money up-front?

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    Well said Andrew 👍

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    Anything to add Adam? Perhaps you'd care to explain why you agree with the statement "At some point trading standards will scrutinise the business model and realise this is not an equitable situation"

     
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    Andrew your rant is frankly hyperbole.

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    Maybe something else is happening that makes continued promotion of the brand a good option.

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    Andrew - Can you validate this comment?
    "Add to this the closure of most of the overseas operation of the company "

    As far I was aware they are in the US / Canada / UK and Germany.

    They are existing Australia....

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    You're right Ann. I think Andrew is getting fact mixed up with opinion or even wishful thinking.

     
  • Andrew Stanton Estate Agency Insights And Strategies

    Truth hurts - hyperbole = are exaggerated statements, my statements are based on facts.

    So, statement one - market capitalisation was at its highest 1000m today it is 303M,

    statement two - share price today dipped to 96p at 11.48 am, its highest share value was 523p,

    statement three - all of the shares that the Bruce's held have been exchanged for money - so cashed in, statement four Michael Bruce has left the company as it has a new CEO,

    statement four on 3rd of June 2019 Woodford's investment vehicle was suspended for 28-days, and on 25th of June he is up to see the regulator to explain amongst other things his operations in Guernsey, and why he circumvented the usual financial norms risking heavily other peoples money,

    Statement five - closures - according to the FT PB ' in Australia, which last year the group predicted would be the first of its international markets to turn a profit, Purplebricks is leaving entirely. The US operations meanwhile face a strategic review and material cuts to investment in marketing and other overheads. The board will “more closely [consider] the opportunities and risks associated with a materially scaled back business” there. That leaves just the UK and Canada.'

    Statement six - Purplebricks complete on only 48% of the properties they list - this is perhaps the biggest statement of fact that everyone should get their head around, meaning that 52% of revenue is generated from clients who get nothing in return - not even a cake.

    Statement seven - well hopefully Truth Hurts you are getting the picture - the truth does hurt and that is why Purplebricks will soon have burnt through its cash mountain, with an annual 26M spend on brand awareness advertising alone - those cake adverts do not come cheaply.


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    Blah, blah, go away!

     
  • Algarve  Investor

    Amazing. You would have thought no-one would want to touch PB with a barge pole after its recent troubles and travails.

    Just goes to show the power of brand awareness, good PR and perception. Outside of the industry, I don't think awareness of PB's difficulties would be common knowledge - they'd just be a name people know as a major estate agency, whose boards are everywhere, and who do naff commisery adverts on the TV.

    That alone, plus reams of funding, is keeping them going at the moment. Because there is huge question marks over their business model, long-term viability, disastrous expansion plans, efficiency and effectiveness when it comes to the bread and butter of agency.

    It clearly has a gold medal winning PR and sales team, to keep getting these sponsorship deals and endorsements even with all the troubles it's faced of late. Maybe it has become simply too big to fail?

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    It is, by far, a better proposition than anything you've ever known or could ever offer. You said it couldn't last and you'll probably still be saying it in another 5 years time.

     
  • Andrew Stanton Estate Agency Insights And Strategies

    Algarve Investor - you are so right. Brand awareness PR and perception.

    I deal with clients who make 400k profits out of a single branch - but they do zero active marketing of their success, imagine - if they actually had a 'brand awareness' like PB, together with a business model that works - well that 400k could be a million, but the need for deep pockets - or in the case of PB other people's pockets - often stifles the ability of a company to launch itself.

    A real irony, estate agents are great at marketing property, poor at marketing themselves.

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    How are agents great at marketing? They fill in a template and upload second rate photos to Rightmove and Zoopla before kicking back and waiting for the phone to ring. Call that great marketing???

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    Do we really care?

  • Paul Barrett

    I think we all know there are too many EA; LA and possibly LL.
    A cull is needed of all of them especially the illegal LL

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    Michelle.
    Let me know your company and I will have a look at how you promote your Properties.
    Should be interesting.

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    Paul.
    Give it a rest

  • Paul Barrett

    So you believe 5 EA in close proximity to eachother is acceptable.
    I don't and never have..Far better to have fewer and less on the borderline of profitability.
    The sector needs financially robust EA who are able to deliver an excellent service.
    Worrying about how the bills will be paid is not conducive to delivering a good service.
    Say it again there are too many LA and EA for the business available.
    I know absolutely nothing about the EA business model but I would imagine at least 20 sales pm are required just to break even!
    That is a big ask in the current climate.
    But amalgamate 2 EA then making 40 sales pm.
    Far better!!

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