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TODAY'S OTHER NEWS

Purplebricks to raise fees and scrap money back guarantee

Purplebricks is to increase its pricing and drop its money back guarantee.

In one of the first acts by new chief executive Helena Marston, pricing will be increased on 11 July and its money back guarantee will be scrapped from 25 July.

The standard package will increase from £999 to £1,199.

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The pro Package will increase from £1,399 to £1,599.

The higher priced regions Classic Package will increase from £1,499 to £1,999.

The higher priced regions Pro Package will increase from £1,999 to £2,499

Marston described this as a “necessary step, not just to strengthen our revenues, but also as a result of the additional costs our business has had to absorb over the past few years.”

She also said in a note to staff that the money back guarantee – available if a property doesn’t receive a credible offer within 10 months of listing – will be scrapped.

She said: “When this was introduced, its objective was to inspire confidence among customers that we would deliver for them, and if we did not, they had the opportunity to get their money back. 

“However, feedback shows it was not highly valued by customers and too many of our conversations in the living room have been taken up discussing the impact of failure, rather than demonstrating why our affordable proposition will succeed.

“We hope its removal will support our field agents and focus all their attention on communicating our affordable fixed, upfront fee and build confidence with our customers that we will sell their homes.”

  • Algarve  Investor

    Last throw of the dice, but almost certainly too late. I suppose they can't really call themselves low-cost anymore. Do they still call themselves online and 24/7?

  • Kristjan Byfield

    Wow, increases of up to 33% those figures would even make Rightmove blush

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    The money back guarantee had more holes than her bank balance the year she was declared bankrupt.

    She’s just a fall guy she will be gone in 12 months. With a restructure soon after feel a bit sorry for her.

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    dont she will be earning more than you and being in charge of a corporate will look good on her CV

     
  • icon

    The next steps are fairly obvious.
    1: Yet another round of fundraising, cap in hand, to their many investors that have too much money and want to throw it away.
    2: Utilise said funds raised to buy out a National High Street agency.
    3: Maybe become profitable for once.
    4: Tell us internet agencies are the best.

  • Andrew Ireland

    Peanuts and monkeys,
    No such thing as a free lunch
    Pay for what you get
    All that glitters …
    I could go on, ….. How much is Ms Marston being paid to do the obvious?

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    Well a bit of commonsense at last. To be different you don't have to be cheap. Seems every 'disruptor' thinks it is all about price. Anyway, this market will be the end of them.

  • Matthew Payne

    This has been on the cards since PB launched. The only way they could ever make any money would be to either have something like a 40% market share, or increase their fees in line with the traditional model. This wont be the last increase. Their choice is simple, to make any money they have to become an estate agent, but that seems a tall order when they dont employ a single one with more than about 5 minutes experience.

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