Purplebricks Share Discussion Threads

[rogthepodge] 21/9/2018 00:17

vindicated schmindicated

I couldn't give two hoots, what you are 'Andy'

you vindicate away, if it makes you feel good

[andy] 20/9/2018 23:54

'Rog'


"This is what happens when you operate with an upfront fixed fee. There's no motivation to even sell because you have already been paid," Mr Reid said.

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I have been consistently saying this as long as I have posted on this thread!


Vindicated again!

[rogthepodge] 20/9/2018 23:12

smear campaign against a market disruptor

same old same old

[bbmsionlypostafter] 20/9/2018 21:05

'Speechless and horrified': Purplebricks in firing line over discount contest

by Larry Schlesinger

Real Estate Institute of NSW president Leanne Pilkington said she was left "horrified and speechless" over an "outrageous" competition run in NSW by fixed-fee agents Purplebricks to pressure vendors to lower their asking prices.

As revealed by The Australian Financial Review, Purplebricks offered $5000 cash prizes to agents who secured the most 5 per cent or more price reductions from their clients as the company tried to clear a growing list of unsold homes amid the slowing housing market.

In some instances agents of Purplebricks, which is not a member of the REINSW, pressured vendors into reducing asking prices by as much as 20 per cent in the space of a week as they competed for the $5000 prize "generously supported" by co-founder Kenny Bruce. In total more than 100 price reductions were secured as part of the "NSW Raffle".

Amid the revelations, Purplebricks' share price crashed 6.5 per cent in London on Wednesday to an 18-month low of £2.226. It has fallen 25 per cent over the past month.

Ms Pilkington, who is also managing director of estate agency Laing + Simmons, said her jaw dropped when she read about the Purplebricks competition.

"I am speechless. I am horrified. Asking prices dropping is something we all accept but trying to get a [minimum] 5 per cent reduction from everybody without discriminating at all, that's outrageous.

"I'll be having conversations with the NSW Office of Fair Trading and seeing how this sits with them," she said.

"Estate agents are paid to act in their clients' best interests by law. How can this be in their best interests?"

Purplebricks initially threatened to go to court to seek an injunction to prevent publication of the Financial Review's exclusive story. The company later defended the competition as "entirely normal".

'Really bad experience'

Further trouble could be brewing for Purplebricks with a number of vendors coming forward on Thursday to describe how Purplebricks agents pressured them to reduce their asking prices in NSW and other states.

"I'm currently listed with their Victorian division, and yes, my agent has been hassling me to drop my asking price," said a vendor who asked not to be named.

Another former Purplebricks vendor in NSW, said he was looking into a class action following revelations about the vendor discounting competition. "We were pressured pretty quickly to reduce our price ... it was a really bad experience."

A spokeswoman for NSW Fair Trading said it was not currently investigating Purplebricks but was "working with Purplebricks to ensure it is compliant with state and federal legislation".

Recently, the Financial Review revealed that WA's Department of Mines, Industry Regulation and Safety, which is leading a joint examination of Purplebricks by state regulators, was investigating "suspected contraventions" of real estate, business and consumer laws by Purplebricks in WA.

Purplebricks has sold more than 4200 homes in Australia since launching two years ago, but this year has battled an exodus of "broke" agents amid accusations – strongly denied by the company – of a toxic work culture.

Purplebricks recently announced it would increase its fixed fee to $8800 – the third increase this year – with half to be paid up front and the rest on settlement. Agents who currently earn just over $1000 per listing, can earn a second fee if they negotiate a sale.

The new fee model, brought it in under Kenny Bruce, is designed to make the offering more palatable to vendors while offering a financial incentive to agents to get a sale, as well as encourage new recruits to join.

But the latest revelations of a competition to get vendors to cut their prices will likely have the opposite effect.
'No motivation to sell'

Ben Reid, managing director of Ian Reid Vendor Advocates, called the Purplebricks vendor discounting competition "disgraceful".

"It is clear their modus operandi is not to get the highest and best price, but to get the listing and then get the property off their books quickly.

"This is what happens when you operate with an upfront fixed fee. There's no motivation to even sell because you have already been paid," Mr Reid said.

"Simply slashing the price" is not necessarily the only way to get a result in the current market, said Mr Reid whose firm takes a cut of agent's commission as payment for advising on behalf of the vendor.

He said presentation, marketing strategy, method of sale and having the right agent were all factors in getting the best outcome.

[chuckol] 20/9/2018 17:52

Looks like old cow is suffering great rage and anxiety because his last post is full of apoplectic poo. The old fool can barely put two words together nor probably does he have two pennies to rub together.

He's also incredibly jealous because I called the bottom of PURP totally accurately. What an achievement amongst all those triumphalist idiots, eh?

He got his call, which he thought would curry favour with said idiots, embarrassingly wrong but he's still full of bluster.

COW, why don't you disappear back into that shareprophetic dungeon that you escaped from?


MOO

[ltcm1] 20/9/2018 17:14

Suits you Sir!!!

[minerve] 20/9/2018 17:13

Come on, who bought above 500p?

[rogthepodge] 20/9/2018 17:08

Destruction of the downtrend
Suits me!

[cowtrader] 20/9/2018 16:57

oh look who's here... the pair of losers who can only hide behind similar aliases of credible posters........ I say losers as that's all you will be if you're long on this share lololololololololol.... you're probably already sitting on heavy losses hence the childish outbursts from you both........ make the most of your temporary reprieve before the destruction of this downtrend continues lololololol..... you will be punished and your investment will be as good as extinct.........good luck ;)

[chuckol] 20/9/2018 15:00

How much more of your ignorant bilge do we have to suffer, COW?

You don't seem to know anything about anything!

MOOO

[1tcm1] 20/9/2018 14:45

Cow. PURP is rising very fast and very far, though, from the 210p that you shouted loudly only yesterday was the ceiling for the share. "this will NOT turn up from 210p". How wrong can you be, and in public too?


MOO MOO MOO MOO etc

[cowtrader] 20/9/2018 14:37

I dont think the closure of Hatched.co.uk will affect the share price here because at the end of the day Hatched never really got out of first gear and are no comparison to what PB have achieved in the UK up to now. That said, there is still over a 100%+ gain required for this share to get back to 500p........ gla

[cowtrader] 20/9/2018 13:49

It will take nothing short of a miracle for this share to go back to 500p

[chucko1] 20/9/2018 13:47

Rog

Your 50/50 assessment on a 150/500 outcome suggests an ‘expected̵7; price of 325p. They’re on sale now at a quid off.

Surely you must be tempted here, even if 270p was not to your liking.

[andy] 20/9/2018 13:36

'Rog',

It's a fair question as you previously said you were going to, but now you've gone all coy on us!

At least I was candid about my trade.

[cowtrader] 20/9/2018 12:58

Well.... Rog...... Connells group are closing their online agency arm 'Hatched.co.uk' this is proof that online agents are not infallible lolololololololololololololololol

[rogthepodge] 20/9/2018 12:45

you worry about your own trades 'Andy'

[andy] 20/9/2018 12:43

'Rog',

Did you add at 270p as you said you would?

[rogthepodge] 20/9/2018 12:27

50:50

but the upside is considerably greater! so lose 30%, or more than double your money

treading water for a while, is another possibility!

risky to be short

[chucko1] 20/9/2018 12:22

Rog, could you assign probabilities to these two (binary?) outcomes. Thx.

[cowtrader] 20/9/2018 12:20

I think the word 'gambling' is the first word that springs to mind when it comes to what rog is doing lolololololololol so in other words, the company is valued at either 495m or 1.65bn............ #facepalm

[andy] 20/9/2018 11:57

rogthepodge20 Sep '18 - 11:19 - 5959 of 5961 0 1 0


it's either going to 150, or to 500!

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Quite a range there 'Rog', significant margin for error there, you'r really hedging your bets aren't you?