Purplebricks’ CEO Vic Darvey has revealed the full details of its Territory Owner reduction programme that leaked out earlier this year.
In a presentation to investors following its annual results published early yesterday morning, Darvey says the number of Territory Owners has been cut from 120 to 42, a much more dramatic reduction than first reported in February.
The numbers were revealed as Darvey outlined the company’s achievements over the past 12 months including its attempts to ‘get closer to its customers’ and paying its agents more than the company’s high street competitors.
“We’ve divided the UK into new, expanded territories and put a new leadership structure and plan of control in place,” said Darvey.
“As a result of this our remaining Territory Owners have much greater accountability for much bigger regions, significantly increasing their income opportunities and ensuring that our best leaders can earn consistently more than their high street counterparts.
Darvey also said Purplebricks has redesigned its agent remuneration structure to ensure the ‘right opportunities are available to everyone in the field’ including a 20% instruction fee payment increase following the company’s recent fixed-fee hike.
He also revealed that the enlarged territories are to operate under a new ‘target model’ to tackle the ‘significant variations in performance’ across the business from region to region.
“The best performing regions are already achieving 10% market share and there is a significant opportunity to grow our overall market share by investing in training, performance management and recruitment,” he said.
Darvey also said that the company is in the process of recruiting 50 new agents to deal with the uplift in demand following the re-opening of the housing market.