The market might be flat, but Kremer Signs has enlisted 71 new start-up agents in the first six months of this year.
They are among 114 new customers, with 178 offices between them, using the boards service – a 22% rise on the first half of last year.
Sales manager Gary Gosney said that around 60% of the new start-up agents have been in the south of England, with most offering both sales and lettings – around a fifth doing lettings only and just 13% doing sales only.
Kremer Signs, which has been trading for 27 years, has recently made some substantial investments in its products, aimed at improving delivery time.
Comments
I dont think a bank would look at lending to an EA start up, no matter how good the business plan in the current climate.
A bank would loan against the security of a property. You could then use that finance to set up as EA. Not ideal.
I think you would need to self fund.
First 6 months = no income.
Expensive.
Unhappy Chappy: "...you are not comparing buying widgets to buying houses are you my friend?"
No - and never would. Neither, my friend, should you - but nevertheless you are attempting to do exactly that.
You must meet Mr Hendry. He is another individual who believes that he can effect a one-man sea-change just by rattling the cages of a few Agents.
It ain't gonna happen - get used to the fact. If you find an Agent who rolls over on Fees without so much as a hint of an argument you will no doubt instruct them and feel like you have won the war. Believe me - having lost that battle with you, that Agent will roll over just as quickly when the price of your property is being negotiated with your prospective buyer.
Then, in the words of that amazingly talented actor chap, Dolph Lundgren - "YOU WILL LOSE!"
Tell you what, mate. If and when you prove me wrong, and all Agents adopt YOUR proposed Fee strategy, then I will instruct one offering a %age Fee that will light their eyes up.
THEN LET'S SEE which works best, huh? :o)
Pee bee I would establish if the widgets met the technical and technical and commercial requirements. If they did then yes i would buy them and have done just that these things are caale dmarket C changes and have happened countless times over the years.....you are not comparing buying widgets to buying houses are you my friend?
So lets take you rexample of stcking em high your friend FBA seems to advocate this philosphy but not seeling em as cheap....As longas the new agents leave em smiling they will keep the business and the repeat business and put the old uns out of business.
In a similar way as low cost countries effected the UK manufacturing industry.
Unhappy Chappy: You DIDN'T answer my question! ;o)
How many WOULD you buy? Sorry - but Buying is buying. You say you DID buy widgets (in your dim and distant past, obviously...), so you know the principles.
Back to yours: "what does the established agent do to compete with the start ups they are losing instructions to?" Answer: Nothing. Why should they? Sorry - but you believe that the new kid in town is being successful here simply because they are taking properties on the market. WRONG! They are only successful if they SELL them! Until that point; they are the ones with something to prove; not the established local 'experts'...
Tell me - how 'flexible' are you with YOUR fees?
Oh - and as for me - I'm just a nobody working in the property industry...
Pee bee you didnt exactly answer my question but anyway i will answer yours
No I do not buy wigets....I buy services on consultancy basis and I use a variety of techniques to establish the suitable market price as of today and tomorrow. (Although i used to buy widgets). If the price Increased over even the short term I probably would not have had a job at all. However there were often new technologies or processes that were discovered that meant I achieved significant price reductions for my clinets or employers. Sometimes this meant moving to new supplier sometimes it meant helping implement these processes with the current one.
By the way what do you do....Peebee?
Unhappy Chappy: Okay - let's cut to your area of expertise...
You are a professional buyer; you buy widgets as machine components. The price of the machine you manufacture has doubled in price in the last ten years, the price for each of these widgets has done so also - and is now £3340 plus VAT. You need to order another thousand widgets.
Then, up pops a new supplier. They say they can supply compatible widgets - but at a cost of £500 no VAT.
How many will you take as an order?
Peebee -
"There have lots of start ups in our area and they have ALL come in at £250 no sale no charge rising to less than 1% - therefore gobbling up loads of stock to begin with."
These people are challenging the status quo they are not on line agents they are local...I have seen them in my area too...so its not new its not diffrent....if they are here in 5 years will prove whether it is profitable but presumably they have provided a business plan that satisys the banks they will be!
Now the question is what does the established agent do to compete with the start ups they are losing instructions to? Answers on a post card please!
Unhappy Chappy: WHAT "challenge to the status quo"? WHAT are they offering which is "different"? New start-ups offering cheap fees to buy themselves into the market is what I see. Hardly new; innovative - OR profitable!
That said - it takes cojones to start up a business at ANY time, never mind somewhere in the throes of the worst market in memory... so I wish them all the very best of luck.
Nice to see some start ups challenging the status quo.....and offering something different...I banged on about flexibility enough on another article.
Hi I recently opened an estate agency and lettings and have been offering 1% for sale and 5% full management for lettings. So far I have listed 12 properties in the first 4 weeks but the lettings side of things is really struggling to take off even with the really low management fee just wondered if anyone had any advice they could give me???
Good luck to them/you all.
A lot of people overlook the fact you only need a small slice of the market to make enough money to succeed. As you continue to succeed, the slice get's bigger.
well done DB - tell that to the idiots round here please
@ James Nothing ever under 1.35% +Vat
DB
I am just about to set up om my own and would appreciate a chat if you could spare me 10 mins. Doesnt appear to be a Private Message facility for me to send you my number so hope its ok to post it here. Chris 07776200581 . Thanks
We've opened two offices during the recession, which has actually helped us gain market share through canvassing. In a good market, houses sell so quickly, that vendors hardly need to change agents, so the slow market has benefited us.
Conversely, the good rental market has generated a good early turnover, which would not have happened during the boom. Not round here, anyway.
And clearly this means that when the market does indeed improve, we have a good stock level and plenty boards on the streets which will help us gain even more instructions, so it's a win-win for us. An added benefit is because we have to work harder to gain sales right now, we can take that ethos with us into a good market, which should prevent us from getting lazy.
Thanks Wardy. It has been encouraging to see new agents but also the conversion of existing has been good too. Im not saying the market has recovered but the wheels seem to be turning
good job Gary.
I wonder what proposition of these new agents are 'onliners'? Would be interesting to know
DB - what was your starting commission rate, and what is it now - may I ask?
There have lots of start ups in our area and they have ALL come in at £250 no sale no charge rising to less than 1% - therefore gobbling up loads of stock to begin with.
we set up in April 2010 and are now the agent of choice in our locality good luck to all the new start ups. work hard and offer excelent service, market correctly and you will prosper