Purplebricks will offer a money back guarantee if the homes of …

In a business statement this morning, Darvey said he is releasing “Purplebricks 2.0” after putting in place “the right leadership team, the right strategy and the right technology to continue growing the business.”

He continued, “With a streamlined proposal and our new pricing structure in place, I have no doubts that Purplebricks is well positioned to gain market share, accelerate revenue growth and progress towards our mid-term goals. “

In a lengthy explanation to justify the new pricing strategy, distributed to shareholders, the agency says its lengthy consumer research on the new pricing showed that many people still viewed Purplebricks as just a “DIY alternative to the street. main “.

Additionally, the study found that consumers felt that without physical branches, the agency lacked local expertise.

Darvey told the agency’s investors: “So what does this mean for Purplebricks? In order to achieve growth, our future pricing and proposition must:

– Ensure that there is a clear sense of responsibility beyond the initial list;

– Encourage global consideration by educating the seller about the full service offered by Purplebricks and the results it achieves in relation to the general public;

– Simplify our offer to facilitate comparison with the simple “one size fits all” approach adopted by the general public;

– Promote and showcase local expertise and the role of the local real estate expert to facilitate the end-to-end process.

The agency says its current fixed upfront fee outside London of £ 999 including VAT remains a critical price, but adds that it came to the ‘refund’ proposal after two six-week trials in the north of the England this spring and early summer.

Tests apparently indicated that a money back guarantee was very convincing in driving conversions from interested parties to actual customers – an 18% improvement in conversion rates.

And Darvey added: “Customers are keen to tailor their own proposals with additional ancillary products such as 3D tours, premium listings, energy certificates and house reports.

The agency also used the statement to report on its latest fiscal year.

He said instructions rose 14% to 58,043, up from 50,948 12 months earlier. Market share by volume fell to 4.67 percent from 5.1 percent.

Average income per instruction rose seven percent to £ 1,501 and total fee income rose 22 percent from £ 71.4million to £ 87.1million.

Adjusted EBITDA of £ 12.0 million (FY20: £ 2.9 million) was recorded, up 314%; the agency had previously announced the return of £ 1million obtained from the coronavirus job retention program.

An operating profit of £ 8.2million, including £ 4.3million from non-commercial items, is well above the loss of £ 5.7million last year.