Regional News

Purplebricks pressures vendors to cut prices through competition

By Editor 0 Comments NEWS, Regional News

As part of an NSW "competition" that offers cash prizes to the agents that get the most price reduction, Purplebrick's agents have been pressuring vendors to cut their asking prices by at most, 20 perfect.

Called the "NSW Raffle" agents had to secure a minimum 5 percent reduction on three properties to go into the raffle which offered a $5000 prize "generously supported by [Purplebricks co-founder] Kenny Bruce".

Any further reduced properties secured the agent another ticket as did a customer upgrading their marketing to the more expensive premier package on realestate.com.au.

"This is an awesome opportunity to get our customers' homes realigned with the marketplace and make sure we get the job done for them," said an email sent out to staff. The email, seen by The Australian Financial Review, said that agents with stock that had been on the market for more than 30 days "needed to realign pricing the most".

Accompanying the competition, was a spreadsheet called the "NSW raffle card" which tracked how agents were faring. It was leaked to the Financial Review by multiple sources and makes for astonishing reading.

In one instance, a vendor in Panania in south-west Sydney agreed to cut their price from $1.2 million to $1 million in the space of just eight days, a 20 per cent reduction, while another in Condell Park cut their price from $1.4 million to $1.2 million, a reduction of 17 percent in 18 days.

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