Starting a high street branch - short-term options?

BenJacobs

Free Member
  • Mar 18, 2013
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    Oxford
    I'm looking to start a high street branch - not done it before - and being tied into long term commitments when I don't know if it's going to work or not makes me quite nervous. Are there any options for starting pop-up shops / short-term options to test and see what the sort of uptake is? I've seen lots of shops come and go in short time spans, so I'm curious as to what options might be out there. It goes without saying that if it works, great, we'll take on a long-term lease, but just to lower my risk right from the word go - what options might be available please?

    Thank you
     

    intheTRADE

    Free Member
    Apr 14, 2019
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    Is this for your estate agent business you mention in another thread?

    If it is, you really don't need a physical branch. Totally unnecessary costs hence why more and more agents are moving online and closing local branches. Nearly every search is conducted on Zoopla, Rightmove and OnTheMarket so just be visible on them and meet potential buyers at the properties at time of viewing.

    Purplebricks being the perfect example of the modern day estate agent and why their costs are so low as they have little overheads
     
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    fisicx

    Moderator
    Sep 12, 2006
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    www.aerin.co.uk
    I'm looking to start a high street branch
    Why?

    Been involved in 8 property deals in the last 5 years and never once visited or even looked in the window of an estate agent.
     
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    BenJacobs

    Free Member
  • Mar 18, 2013
    194
    11
    Oxford
    Is this for your estate agent business you mention in another thread?

    If it is, you really don't need a physical branch. Totally unnecessary costs hence why more and more agents are moving online and closing local branches. Nearly every search is conducted on Zoopla, Rightmove and OnTheMarket so just be visible on them and meet potential buyers at the properties at time of viewing.

    Purplebricks being the perfect example of the modern day estate agent and why their costs are so low as they have little overheads
    Yes indeed it is. It's not for attracting more buying enquiries, but more sellers. I often hear it said that agents don't need a high street branch, yet 96% of sellers choose a local high street agent, visible in their local area. No online agent, Purple or otherwise, have become the obvious go to agent for an area, that accolade always sits with the high street branches that sellers can see and trust. It's something that makes a huge difference, and something I'd love to test.
     
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    UKSBD

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  • Dec 30, 2005
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    Don't know about national stats but I can tell you where we are I have only ever seen one house with a purple bricks sign outside all the rest have used one of the two local agents.

    Same here, the agents may all be on the portals, but it's generally the agents boards I see rather than the portals.

    As the OP says, there is a difference between buying and selling, if he's targeting the sellers it makes sense to me to have a physical location.
     
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    MOIC

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  • Nov 16, 2011
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    My tuppence worth . . . . .

    To have an online presence selling property, you'll require a large amount of marketing budget to compete with what's already out there, even if it's local advertising.

    For a pop-up shop, it works both ways. The landlord will want to include a 30 day (it will depend on each landlord) vacant notification to terminate the license, should he have an enquiry to sell a lease to another party. A quick exit is probably the last thing you need to build your reputation in the local area you're looking to start with. Even on a short term basis, you'll need to invest in getting the shop up to scratch, as well as furniture, phone lines, signage etc etc, presuming the property is in a good decorative order.

    My advice is to commit to a year's license (rent to be negotiated in your favor - 20% of current rental value is probably fair on both sides), so at least you have security of tenure for one year with a clause to allow you to extend, should you want to.

    Take into account that if you have a B&M shop, you'll have additional expenses, staff, utilities etc etc, which all needs to be taken into account.

    Even if you decide to just have an online business, you'll still need premises to work from, whether it's an office, shop or other commercial property.

    I agree that sellers will prefer to work with a local agent rather than an online only agent, but they'll probably be directed to an existing company they trust and has a reputation in the area, rather than a newcomer.

    Your only way to get a seller on board is to offer a cheaper rate, probably 1%, instead of the normal 1.5% - 2%.

    Give it some thought and see what competitors you have in the area you're looking to start with.
     
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    ecommerce84

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    Feb 24, 2007
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    An estate agent friend of mine thinks that Purple Bricks is the best thing to happen to traditional estate agents in a long time.

    They are apparently so bad, that it will put people off ‘online only’ estate agents for years to come.

    Out of 85 properties currently for sale in our town, 2 are with Purple Bricks, and there are no other online only estate agents listed, which means 83 out of 85 are listed through traditional estate agents, all of whom have a bricks and mortar establishment.

    In our area at least, having an actual building is undoubtedly a major plus point, and I doubt we’re an outlier of any kind.
     
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