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Purplebricks reveals more details about its new fees structure

Hybrid agency says money back guaranteed and simplified two-tier fee structure helped win more instructions 'in the living room' during trials.

Nigel Lewis

purplebricks boards

Purplebricks is to drive home its local credentials as it rolls out the new Money Back Guarantee (MBG) and simplified two-tier proposition.

Following trials in the North West, the firm’s annual report reveals that the guarantee had a similar effect on consideration to a fixed fee on completion; consideration to instruct increased 44% compared with the current proposition.

Conversion in the living room increased 18% across all territories and boosted instructions won; compared to pre-trial, MBG region daily run-rate instruction growth was 14% higher than non-MBG national average.

It also found that using a two-tier proposition line-up optimised choice and significantly increased consideration, delivering an 11% uplift in priced consideration.

The guarantee applies to properties marketed at the agreed valuation, allowing customers a refund on their full fee if they have not received a proceedable offer within 10% of their valuation.

Purplebricks admits that while its model remains “very relevant”, the last year has highlighted barriers to greater adoption that it needs to overcome to extend its reach.

It says: “Some customers believe the unconditional fee means that our agents aren’t always incentivised in the right way, while some don’t fully understand the Purplebricks offering and often see it as a DIY alternative to the high street.

“There is also sometimes a misconception that the company lacks local expertise.”

As it rolls out the new initiatives nationally, it aims to promote its credentials as a famous local brand and will focus heavily on promoting and emphasising its local expertise.

“We will do this through the implementation of hyper-local national media with targeted and relevant local messaging,” it adds.

“We will increase brand visibility in towns and cities across the country through local partnerships and sponsorships – and more local marketing. We will also champion and equip our agents as true local heroes.”

Purplebricks currently charges £999 incl VAT outside London and £1,499 incl VAT inside.

July 28, 2021

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