Purplebricks boss Vic Darvey has expressed full confidence in the company’s goal of 10% market share in the UK.
In the second part of his exclusive interview with EYE, he said: “People forget what a nascent operation this is.
“We have gone in five years from start-up to being the UK’s biggest estate agency.
“From our perspective and our investment, we believe that technology will help us get there, plus of course enhancing the performance of our people.”
He said that after a flurry of recent changes, including reducing the number of Territory Owners down from 100 to 43, the company now has strong foundations in place.
Customers will now also get a more consistent offering.
He said that with the appointment of a new, single managing director of both sales and service – that of Allan Warren – customers will now have a cohesive service “from the living room all the way until the big day”.
He said that up until now the customer journey, between the field force and contact centre, had been “a bit disjointed”.
Of the 60 or so people who were until recently Territory Owners, he hopes that most will be interested in redeployment.
But will they be earning less in different roles? The loss of £2,000 per month has been mentioned by some insiders to EYE.
Darvey said he could not comment on individual scenarios but added: “It is important to us that our people in the field earn more than their high street agent counterparts.”
Asked whether Purplebricks would ever change its business model to No Sale, No Fee, Darvey said: “It is very unlikely. The upfront fee gets us motivated customers, and we recognise it as very successful.”
Darvey was also forthcoming about the antagonism that a number of high street agents show towards Purplebricks.
Purplebricks had, after all, set out to disrupt the entire industry and while its ‘commisery’ adverts were witty, they had undoubtedly been provocative.
He said: “We recognise we are a very disruptive proposition.
“We have taken a significant amount of money off the marketplace.”
He said that he personally is very aware of some of the antagonistic comments from high street agents, including on EYE.
He said: “I try not to become too distracted. I accept that everyone has a right to an opinion, and I respect that. We are very disruptive and it is only understandable that certain people see us with animosity.”
However, he added: “Even though we are the UK’s largest agency, Purplebricks has only about 4% of the marketplace – so with 96% remaining, there is a lot to play for.”
* Yesterday afternoon, after concerns were expressed to EYE about contracts that LPEs are being asked to sign which talk about transition plans for properties that have been listed but are unsold or unlet, Purplebricks told us: “There is no intention on the part of PB to claw back fees already paid to Territory Owners or LPEs.”
Comments (45)
Is it true that your new training is to tell the recruits to list at any price as long as their notes are clear that they told the owners what the value should be? Thus to have a reason to object to any refunds when they complain that they haven’t sold?
List them high and not sell a thing? 15,000 standing stock for listings over 8 weeks old and no motivation to sell them after listing?
Is it also true that once paid it is no longer a lifetime fee and returning customers have to pay again?
These are the questions that need answering Vic. You are mugging the shareholders.
“Is it also true that once paid it is no longer a lifetime fee and returning customers have to pay again?”
Blimey, TFIT – that’s one helluva question!!
A quick look at the Service Agreement throws up this little cherry:
“We will advertise and market your property for the Advertisement Period on such property portals, websites or publications as we consider to be the most effective at securing interest on your property from potential purchasers and tenants in our absolute discretion.”
In relation to the above, according to the Key:
“‘Advertisement Period’ means 12 calendar months.”
Also, under ‘Cancellations and refunds’:
“You can withdraw your advert at any time by clicking on the ‘remove advert’ icon on your property page in the Online Platform. In certain circumstances you may be able to re-list the property within a designated period after withdrawal. Details will be made available at the time of seeking to withdraw/relist your Advert.”
So – maybe the ‘Lifetime Fee’ is a thing of the past!
#TotallyScrewed!
It has been mentioned before – see comment #5 on this link
https://v3.propertyindustryeye.com/eye-newsflash-restructure-at-purplebricks-as-layer-of-management-is-removed/
Can’t believe I missed that!!
SO…
According to Mr Darvey:
“We have gone in five years from start-up to being the UK’s biggest estate agency.”
On the basis that the date of Incorporation of the company was 26 April 2012 –
beta.companieshouse.gov.uk/company/08047368
– doesn’t he mean seven years? (Nearly eight, to be more precise…)
Seems that Purplebricks’ Group CEOs keep their ‘Key Dates’ and “Sales” statistics filed in the same PurpleDrawer.
The only 10% market share I can see these cowboys achieving is 10% of all the complaints about estate agents in the U.K. The way they treat their staff is shocking, mind you it’s no different to the way they treat their poor suffering customers! Ahh CONmisery!
Don’t get wound up with all this PR kerfuffle.
Best way to treat the next PB exclusive news is to totally ignore it – with no comments a few times it will be interesting to see what the PB PR machine
I would say though that we seem to live in an age, helped by social media, when so many “gurus” relentlessly predict then they are not there when their predictions don’t come about. If one predicts there should be some responsibility and accountability.
If you’re going to do something then do it, don’t bother to tell me about it until you’ve done it. I’ve found that people who tell you they are going to do something invariable never do it – just live on the back of a dream
The arrogant ex employees of PB – good luck – so many of you bitter and twisted. You made your money but were ‘found out’ – hope you’re happy in your new ‘well paid’ jobs, guessing that’s why you post on here
lincla……? that “bitter & twisted” thing you mentioned, if you hold up your mirror, you can bask in the reflection of your comments. “Found out” ……Yes, Purplebricks have indeed been found out. Snuggle down. Nite.
With the brand awareness PB has it be better of becoming a portal..
Surprised Axel Springer haven’t done that (given their background). Perhaps KKR will provide the cash for them to buy OTM and rebrand ?
If they bought C/Wide as well, that would really disrupt RM & Z.
Good luck getting any form of support from agents as a portal……..
Well you pay RM so my guess is you’d pay anyone!
A fair point.
This is the statement that I find most offensive, from Dear Old Vic…
“We have gone in five years from start-up to being the UK’s biggest estate agency.”
I know that you’ve got to keep spouting this fake comparison Vic, pretending to be “an estate agency”.
Trust me Vic …..with over 30 Years graft in this industry I can still smell sh£te wafting up from a PR statement.
I could praise that you spout World Class sh£te Vic, however you don’t. You currently run (until the next CEO moves you aside) a pretend estate agency, shored up my a multi-million marketing spend that makes real estate agents (working across the UK) recoil in amazement …….that despite spending 10’s & 10’s of Millions of £££’s, you are still peddling at 4% market share.
Here’s the reality Vic. Any UK Homeowner who is thinking of selling their home should NOT even consider Purplebricks unless they think their home is a 99p cheeseburger. The most valuable asset that most people own is their home, so when they choose to sell it, they should choose a REAL Estate Agent, not PRETEND PURPLEBRICKS.
The poor souls that are fooled into working for you need to know that there is no pot of gold at the end of your Purple Rainbow ……at least NOT for them.
You can keep spending Millions Vic, trying to perpetuate the myth that Purplebricks is an Estate Agency ……but it isn’t Vic. We know it. You know it. Your investors might just begin to understand that PB is simply a very expensive money muncher.
So, STOP peddling the Estate Agency myth Vic and START explaining what Purplebricks really is, a VERY EXPENSIVE Property Listing Service which spends Millions on Marketing itself, pretending to be just like a real estate agent, and waaaay more time managing its online reviews in order to perpetuate the myth.
This industry w
So which patch were you running when you worked for them?
SLF ……. a question that leads nowhere.
Goodnight, God Bless, and may your Purple God go with You.
Great way to achieve 10% market share; get rid of the “self employed” TOs consistently achieving over and above that in their territories……all so you can make sure your redundant EMPLOYED RDs are kept happy and out of the inevitable Tribunals…. Oh, and by the way, you don’t “enhance your people” (you certainly don’t!) You look after your people so that they will enhance your business.
Look after your workers that remain on the fronline…not that you’ll ever admit thats what they are, especially to HMRC.
Is that it, 10%!!!! Do the maths it isn’t enough for the investment lost to-date.
PB is nothing more than a franchise of self employed LPE’s estate agents. Not the UK biggest estate agent, they are a brand name.
Figures show that when whittled down to territories/towns they are the smallest estate agents.
If the Prudential, Lloyds Bank et all couldn’t, if Mr. Turner couldn’t, if Mr. Livesey hasn’t, I wonder what gives Mr. Darvey the confidence to think he can get a 10% market share of all Sales and all lettings and all management.
To put some missing meat on the bones that’s about 90,000 completions- 174,520 instructions and 460,000 let or managed properties
I am not knocking the ambition but practically I cannot see how the growth in staff and costs to list all of those properties, let alone win all those instructions can be achieved
Vic – You state that you have no intention on clawing monies already paid to LPEe. Why ask us to sign this???? 11.2 To the extent that as at termination or expiry of this Agreement, the LPC has received Fees from the TOC in respect of any properties which as at the date of termination have not been sold or let (a “Pending Property” ) the LPC will, at its own cost, co-operate in good faith with the TOC (or the Licensor if the TOC’s agreement with the Licensor is no longer in effect) to agree a transition plan in relation to the handover of those Pending Properties to a new licensed business partner identified by the TOC or any other party identified by the Licensor (as applicable) and the LPC shall repay to the TOC the Fees which have been received for such Pending Property minus a sum which is equal to the actual costs incurred by the Licensed Business Party relating to arranging viewings of the Pending Property (if any).
Shocking abuse of your LPE’s. So if you leave you will have to repay £1000s. This ‘commisery’ clause will destroy the morale of your income generators.
go read it again…. and get a dictionary and find out the meaning of ‘pending’
Dictionary definition of pending: Adjective – awaiting settlement. So, if, say, 50% of an LPE’s stock is available for sale or let on termination the LPE shall have to repay any commission received on all these ‘pending’ properties. Have you signed this revision clause lincla1803?
I suggest you do not.
Clearly the PB model cannot continue to work- who in their right minds is going to want to work for PB now?
The LPEs used to get paid an override if they didn’t make enough one month. They were encouraged to keep believing that earnings would increase if they continued to work long hours seven days a week..however, years down the line, earnings have only got worse and for many, hope has long gone.
Kenny and Michael have been replaced by incompetent, ruthless individuals who have no experience of the business and clearly no loyalty and no care for the people who have practically worked like slaves.
Not only has the security of the override been taken away, earnings continue to be poor and are abysmal some months. The rules are constantly changing, as are the personnel. Nobody seems to know who to trust.
Now to be told that you have to pay back money for instructions if you make the sensible decision to leave???
For anybody still hanging on, I would get out as soon as you can…
shame you’re bitter – wish you all the best
One cannot carry one’s business forward without first carrying one’s staff on one’s shoulders.
Course you will Vic.
Increase of market share always goes hand in hand with a cull in staff.
I made more net profit from my 1 branch independent than the UK’s biggest estate agents last year… and the year before… and the year before! Puts a spring in one’s step on a gloomy Monday morning.
Good for you! Now if you don’t mind, I have just a quick suggestion; Give RQ a tinkle ask him to float your agency (*he may ask for a fair cut say 78% to him) but as your in profit and Doorsteps, EasyProp, PB , HouseSimple and Yopa aren’t ; by my finger in the air valuation, I reckon you’re worth £800m
It’s not just the antagonism of other agents that Vic ought to be concerned about, how about the anger of the ever growing number of exPB ‘people’ ? So many (probably most) feel that they have been treated badly and completely stitched up… and then there’s the customers!
As an ex TO I can 100% confirm that refunds were given to customers and those refunds deducted from my invoice.
Vic Darvey – this is why your workforce dislike you.
It’s laughable how you think you’ll progress this business when you’re clueless about your people.
“…it is only understandable that certain people see us with animosity.”
It is only understandable if you understand, live, breathe and care passionately about the industry…
…on all points of which you fail miserably, Mr Darvey.
Some questions for Vic How many Territory owners are going to stay as LPEs?
How many LPEs do you have left?
What does your recruitment look like now with the current advert saying you will ‘own postcodes’ when they can be whipped away at any time?
How do you expect to get 10% market share when some regions exceeded this and now dropping like flies?
What are the views of the shareholders now that all you have done is lose your best talent in the field?
It’s not the disruption that makes other agents angry, competition isn’t a problem for agents it’s always been a massively competitive industry.
There is frustration this particular competition doesn’t actually have to make a profit to consider itself successful because that’s not the case for every single rival you compete against. It’s like gunning a race against a drug chest, it’s not a fair race. But so be it, that’s the business model.
The resentment comes from exaggerated claims, blatant lies, hidden fees, miss truths, false reviews, describing a salesforce, who are usually neither local nor experts, as LPE’s and marketing that slags off all those agents who do have to make a profit to survive as greedy.
If any business could have a bottomless pit of cash, be allowed to waste staggering proportions of it over a period of years while claiming to be the saviour of an industry – it’s unlikely to win a popularity contest or carry credibility within that industry. That’s why we get the hump Vic.
Exactly this
Yawn!
10% market share…blah, blah, blah.
Industry disruptors…etc, etc, etc.
UK’s biggest Estate Agency…yadda, yadda, yadda.
It’s just the same old sound bites regurgitated again and again and again.
Come on Vic, when are you going to come up with something new? PB has been banging the same drum for so long now, everyone is bored.
Didn’t some other failed self styled luminary predict the onliners would have a 50% market share by 2020 – look how that business crashed and burned !!
Good Luck with that Vic!
Purplebricks – Estate Agents? NO
Purplebricks – Marketing Machine? – YES
Vic Darvey – Dreamer? – Yes
Allan Warren – Fall Guy? – Yes
PB Consumers – Misled? – Yes
PB People – Collateral Damage? – Yes
Purplebricks – Sustainable? – Doubtful (Only if it can keep spending MILLIONS on marketing)
Purplebricks – Good for the consumer? – No
Purplebricks & Trustpilot? – No (credibilty)
Finally…… The Oscar for Virtual Reality? – Purplebricks
Purple_Who?
I can only guess you’ve never worked for them as you show a total ignorance of how they work. What a ridiculous post, buy hey, you got 10 likes so that’ll perk you up for the day.
You’re right SLF….
I haven’t worked for them. I can’t change ……I’m a real ESTATE AGENT.
‘I haven’t worked for them’ – seriously and you think you can spout off
That’s right lincla ……I haven’t worked for them. The only spout I use is the one when pouring a cuppa. Nite. Zzzzzzz