Purplebricks has revealed that it is to consider overhauling the agency’s pricing structure and move away from its fixed-fee model of £1,399 in London and £899 elsewhere.
Recently-installed CEO Vic Darvey has also admitted that charging vendors even if their home doesn’t sell may not be working in some areas of the UK.
“In certain markets, in certain pockets of the country where houses aren’t moving quickly, there is a moment of hesitation from customers saying: ‘I know I can save £10,000 but actually do I want to commit to an £899 upfront fee when my house may not sell?’,” he said.
Darvey also believes the changes may be necessary if the number of homes sold each year in the UK dips following Brexit, and that he’s unhappy that its current pricing structure has been the same for five years.
“With any successful business, you need to adapt and evolve your pricing strategy,” he said.
In separate comments to PA, Darvey also said the company’s US and Australian operations had been a ‘huge distraction’ for the company’s board, and admitted that ‘some mistakes’ had been made in the past.
“I think we’ve been really clear in admitting that we’ve made some mistakes and we need to learn from those,” he said.
Other changes confirmed by the CEO include a swing away from only plugging its low-price fixed fees and promote its ‘exceptional service’ as well.
And contrary to industry rumours, Darvey confirmed that Purplebricks is to continue operating its profit-making Canadian business.