An agent who has created an online product says that launching it under the existing high street brand is proving very successful.
Tobias Morrish said: “We have created a new product, but not a different brand or website for Sell it Yourself.
“We do have a traditional estate agency offering, but we make no attempt to upsell to that.
“People are very proud of themselves when they sell their own property and what we find makes a big difference is that we train them in how to do viewings. This gives them the confidence.”
Sell it Yourself, which charges a flat rate of £895 plus VAT payable on completion, is part of Premier Lets and Sales, which has offices in Seaford and Peacehaven, East Sussex.
Morrish, 24, said that two years ago he joined the family business after graduating with a degree from a business innovation course.
“We were – and are – the local market leader in lettings, but I joined on the sales side,” he said.
Morrish decided to create an online offering alongside the traditional service. The former initially charged 0.5% compared with the latter’s current 1%.
The 0.5% rate came in for some online reviews noting that it was still more expensive than Purplebricks, and last week Morrish changed it to a fixed fee of £895 plus VAT.
The fee is only charged on completion.
Morrish said: “We do not have an automated online platform. We manage all the bookings and feedback ourselves, and so we are still making and taking the phone calls on behalf of the client.”
The fee also includes valuation, negotiation and sales progression done by the firm, plus listing on Rightmove and an accompanied Open House.
He said: “The only real difference is that the vendors do their own viewings. However, if there is an emergency or the vendor is on holiday, we will step in and do it for them, without any extra charge.”
There is no tie-in period and no change in the fee if the vendor is already with another agent.
Morrish said: “The reason for that is that if someone has their property with Purplebricks, they will already have paid money up-front and I did not want to charge them another fee up-front.
“As I am targeting Purplebricks sellers, that would not have made sense.”
Morrish said that he has been very interested to see the rise in product offerings so that agents can operate an online offering under a different brand.
He said: “It is almost as though this is something they want to hide away. However, we find that having Sell it Yourself under the same brand and on the same website is preferable, as it does not confuse people.
“As a product we offer it is also something we are very proud of, and not something we want to hide.”
Vendors who use Sell it Yourself do visit the branch, says Morrish. “They like to pop in, have a cup of tea and tell us how they are doing.
“When someone puts a property on with us we give them a handbook and do a trial run on how to do viewings.
“This little bit of training makes a huge difference.”
He added: “This week, Sell it Yourself has five properties under offer.
“This product has enabled us to compete with the well known agents locally as well as with the online agents, and our clients have been amazed with the high level of personal service.”
Morrish said the firm is now looking at the possibility of a Let it Yourself model, which could operate similarly.
Might we possibly have a day on PIE where a story such as this does not get rubbished? It would be really refreshing to have a positive discussion about this initiative.
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I totally agree and it is about time that all the high street agents woke up, smelt the coffee, stopped complaining and started to compete against the on-liners. As a traditional estate agent the last thing I wanted was to dilute my great reputation and service but I’m afraid if I want to stay in business then I am going to have to set up an on-line offering alongside my current name. It’s a real shame because the on-liners are going to completely ruin our industry. What the high street agents must remember is that they hopefullyalready have a good reputation in their area, so they already have a great head start without having to spend millions of pounds on tv advertising.
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I put this on the next story but I think it is just as relevant to this one:
All no sale – no fee agents should put a line in every piece of communications and publicity, in adverts and on boards, on social media and their websites etc to the effect that:
‘Always use a no sale – no fee estate agency. If you pay up front you risk losing your money’
And if you feel like add: #conmisery
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Great Idea, what will we do when PB start offering No Sale, No Fee.. Can’t be far away
Pay Upfront £849
Deferred £849 but you have to use eZIE
No Sale, No Fee £1199 but again you have to use eZIE (And pay £200 Upfront today, used to secure the Conveyancing) but in reality used to fund the LPE.
Watch the industry fold like a house of cards when the above happens
BTW – We are winning against the online agents no problem so long as we are invited out. The issue is traditional’s getting invited out.
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You can but a discussion forum where only positive comment is welcomed is artificial, attempting to censor opinion doesn’t benefit anyone.
Eye has already noticably lost Peebee’s input and only has a fraction of it’s appeal without his observation and wit. If the desire is now to create a library of quiet contemplation, good luck.
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Where has PeeBee gone?
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What has happened with PeeBee?
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He’s highlighting the massive volume of negative Trustpilot reviews of Purplebricks via Twitter.
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Dunno! He’s not on holiday- he’s tweeting and doing his usual sleuthing but when did you last see him post on Eye? He’s AWOL, gorn, bu99ered off.
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his heads gone
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In the words of John Cleese “He’s been taken up!”
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Not just his head, the entire thing has gone!
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Head was always gone, Eamonn – I just went looking for it.
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I agree with another comment saying ‘stick to lettings’ as all he has done is dropped and advertised his lowest agency rate and hid behind the online banner. I’ll be amazed if they survive.
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Unless his clients are businesses he needs to be quoting including VAT, why hasn’t this been picked up on?
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No they are breaking the law, simple
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Refreshing news. Its about time the industry started modernising instead of always complaining about online service. We need to keep up with our client requirements and im afraid online options are part of the service we now need to offer. John Lewis and a whole range of other high street retailers have modernised with the inclusion of an online service so come on lets wale up and smell the coffee.
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Being able to balance online and offline is only going to extend and enhance agent’s offerings. We give independent agents the ability to add these capabilities to their websites without having to invest significant amounts of capital or time.
We’d love to chat to the early-adopters and innovators of the industry. Just get in touch with us via our website at http://www.onedome.com
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I am not rubbishing this kind of idea, but the major issue in my experience is that you don’t even get in to value these properties before they appear up for sale with an online lister. The first you know is when the board goes up.
Through a combination of RM & Z low fee banner adverts, targeted emails to registered people attracted by our properties, adwords and TV advertising they get through the door first. You don’t even have a chance to present your alternative.
However there is a way we could all start addressing this problem through ‘co-operative collective intelligent marketing’. Just 1,000 of us aligned behind a campaign could drive huge numbers of requested valuations in our direction first. It would cost us all a great deal less than giving up half our commission or more trying to match fees that are already largely subsidised up to 50% or more by investor money.
If you want to be kept informed going forwards on a no commitment basis then post a comment here or send an email to hiphip@agentv.co.uk.
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It is my humble opinion that if an estate agent wants to offer an online package, it should be a different brand all together from their High street brand .. (in fact I discussed this a few months ago on three minute YouTube video on why I thought the Countrywide decision was wrong for them https://youtu.be/7S1Gj9UvO9c ).
My fear is if we all create an online offering to go alongside our High Street offering .. what if that Online offering actually works? The very thing we created to protect ourselves from the online threat will end up destroying the very thing it was designed to protect?
I have had at look at this agents figures .. and in the BN8, BN9, BN10, BN20, BN25 and BN26 which is Peacehaven and Seaford .. the two main towns the agent covers + the Countryside behind it …. over the last 12 months (according to Rightmove Intel) they have listed an impressive 32 properties .. yet only represents a market share on new listings of 1.4%
Have a look at the market share of new listings below
If you are an agent and worried ..Let’s not panic here guys .. even Purplebricks only have 3% market share
By creating your own online model for a threat that only represents 4% to 5% of the market seems very strange– you could end up killing your High Street agency by going this way?
There are better ways to counter the online threat than join them (I talk about it my Youtube channel which you can access after watching the above video)
MARKET SHARE ACCORDING TO RM INTEL – JUNE 2016 TO JUNE 2017 – in the postcodes mentioned above
1. Phillip Mann Estate Agents Seaford – 175 listings – 7.5% market share
2. Phillip Mann Estate Agents Peacehaven – 172 listings – market share 7.4%
3. Phillip Mann Estate Agents Newhaven – 139 listings and market share of 6.0%
4. Cubitt & West Peacehaven 134 listings with market share of 5.7%
5. Rowland Gorringe Seaford 127 listings with market share of 5.4%
6. David Jordan Seaford 126 listings with 5.4% market share
7. Fox & Sons Seaford – 116 listings and 5.0% market share
8. Fox & Sons Peacehaven 99 listings and 4.2% market share
9. Simon Welch Your Estate Agent – Seaford – 93 listings and market share of 4.0%
10. Carruthers & Luck Peacehaven – 80 listings and 3.4% market share
11. Purplebricks.com – 71 listings and market share of 3.0%
12. Move Sussex – Eastbourne – 66 listings and 2.8% market share
13. Archer & Partners – Polegate – 55 listings and 2.4% market share
14. Fox & Sons Polegate 41 listings and 1.8% market share
15. Newberry Tully Seaford 37 listings and 1.6% market share
16 YOUR MOVE Polegate – 37 listings and 1.6% market share
17. Emslie & Tarrant – Eastbourne – 36 listings and 1.5% market share
18. Freeman Forman – Seaford – 35 listings and 1.5% market share
19. King & Chasemore – Saltdean – 32 listings and 1.4% market share
20 Premier Lets & Sales, South Coast – 32 listings and 1.4% market share (THE AGENT IN THE STORY)
21. Open House Estate Agents- 30 listings and market share of 1.3%
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The very thing we created to protect ourselves from the online threat will end up destroying the very thing it was designed to protect?
Meanwhile some praise the idea. The internet has been used by agents for over two decades and now all you are doing is trying to “buy” your customer with cheap fees and win 3 to 4 times more instructions compared to sound and stable high street practice. That is a big risk. If the big boys can’t make money out of it spending £m’s, how does the little agent expect to! Its all about your own confidence and presentation that makes you successful. You are cutting your throats if you think (you can be lazy) and win more business. When the market dwindles, so does your income which you have cut so lean!
I’m all for improvements, but no-one has made it successful on-line. Only the other day EYE reported a hedge fund invested £15m for a SHARE of £1m return before costs and we all know how much that other internet disruptor has lost megga loads £m’s …. which people seem to think is a success, so lets follow them. Lemmings comes to mind.
You are all already on the internet so this is nothing more than about cheap fee’s to win business.
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We went ‘online’ the moment the internet became mainstream.
What you’re talking about is slashing your fees.
You’re all mental.
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We don’t use mental these days, its not p.c. Try businessly challenged!
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Being “businessly challenged” is one thing, but wearing a waistcoat is unforgivable…
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As usual agents are their own worse enemy’s.
Prepare to see a whole load more of these stories over the next couple of years, My prediction is most will not see the 2 year anniversary.
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I had to read this story twice to really get to grips with it and where to start?
Firstly by offering a supposedly online agency alongside your current existing brand you are instantly down valuing your current offering or maybe you do not value your current offering?
If the only thing that differentiates the two services is the fact that you are requesting the owners conduct their own viewings then you are merely offering a traditional estate agency that is not doing its own viewings and cutting its fees, therefore having to increase the amount of units its sells to provide the same service and have any chance of continued profitability. If you don’t double your units then you will either lose your customer service or profitability, more than likley both.
So assuming you have decided to sell twice as many properties to equal the same amount turnover. But the market is tightening and less people are moving and there are now new players in town that have millions to spend. So Why do traditional agents feel the need to compete with purple bricks and the like most of these companies are glorified listing agents enabling the seller to list their property on portal websites. Differentiating your service and marketing and what the estate agent really offers and showing that it has a value has to be a better solution than trying to be a jack of all trade’s and master of none.
For years in the strong market I have pitched against agents saying they will find a buyer in a week, they can sell it easy, but sit with a seller, explain how you can get them the best price, and how you pay for the best staff, what it costs and truthfully how long the process takes and you will be half way there. We all know it is not a matter of weeks, it takes several months from start to finish and Mr or Mrs Seller you will be having a relationship with me for a number of months where I will be looking after you and my team paid well for selling your home.
If traditional estate agents increased their charges by a fraction then the majority of the public when understanding this will still continue to use you. This can be seen in hundreds of online reviews and client feedback showing they do value the service that they receive.
You don’t see a luxury brands such as Gucci, Armani, etc offering their products side by side or trying to compete on price, they establish themselves as quality.
So before you start thinking you can’t beat the online brigade or you need to offer it, read all your reviews and you competitors and Imagine increasing your fee from 1% to 1.15% all of a sudden you could manage to let 1 in 10 instructions go to the cheap option and you would be no worse off, increase to 1.25 and you could let 1 in 4 go. Chances are many of these in a market which is becoming increasingly tougher will come back to you as the local expert who believed in his or her service.
There are now always going to be online agencies and traditional ones, there will always be primark and Hugo boss. It is a question of where you want to be, but having the two side by side is in my opinion commercial suicide.
Here is a link to a recent review by one of our clients that hopefully will give the doubters faith: https://www.allagents.co.uk/review/245209/
Its easy to fall into the trap of reading everything online and seeing reports about PB and the like, but if you came into agency to help people move provide a personal service where indeed they can call whenever, pop in and have coffee and you will be there for them, then value it.
Don’t offer the service for peanuts, you will end up only being able to pay for monkeys with no way to incentive them and your clients won’t want to pop in, or worse you won’t have the time to spend with them if they do. Your service will slip, your profit vanish and you will lose.
Of course If your happy providing a listing service for under a £1000 with a centralised call centre and sales progression team that doesn’t answer calls and stresses the seller and the chain then go for it, it is a very different option.
Finally a question to ask yourself and your team …. can you and they list at least 5 reasons why you should charge more than your competitor next door and 10 more reasons why you charge more than an online option, if not then I fear you have an issue.
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Am I missing something here?
Isn’t this the agent offering the seller a couple of grand to do the viewings for him?
“Well normally to sell your property at £300,000 we’d charge 1.3% which equates to £3,900 + vat…BUT if you’re happy to do your own viewings I’ll knock £3,000 off”
As a seller it should be a no brainer…unless you’ve got some kind of excessive shyness or anxiety disorder. And for anyone wanting to jump on that comment, I’m not poking fun. That would be a genuine reason to want someone doing the viewings for you (but I’d still get a mate to do them and save the 3k)
Talk about dropping your pants and giving yourself a good spanking.
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nice advert PIE.
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Well good luck to them, but from the board/branding and the local presence it seems they are best just sticking to the low cost offering. Running a business where you charge £895 for EVERYTHING but viewings…… Have they costed this properly? Time for a rethink, or perhaps stick to lettings.
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As a buying agent only and not a selling agent the idea of a type of hybrid on line agent who actually books the appointments and does the negotiation must appeal to an informed vendor. Education education education and time spent with potential vendors when you are pitching for the client is essential to get them on board. If you are a good high street agent why not couple your tradotional agency offering with an on line option under the same name. Providing you are good then both offerings benefit your one company name.
Tesco have shops and sell on line as do many national and local based retail outlets under the same name. Two different names equals double costs in publicity – why water down your ‘name’?
I recently had to arrange an appointment through an on line agency Visum. Well I almost gave up as I phoned them outside office hours and after 20 minutesI gave up tyring to use their automated service. Finally called the next day and spoke to a human but that person was not exactly a happy bunny.I Finally viewed and agreed to buy but of course vendor uninformed about the buying procedure so I happily advised.Service from Visum zilch.
For the speed and convenience why not consider the business model as Tobias has? After all, all estate agents have websites so by charging a relevant fee as a high street agent you can get a piece of the on line action as opposed to PB or others. Service offered to purchasers will win through and appointments and handling negotiation with vendor doing viewings OK by me. Some people will always want something cheaper so why bother with them?
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Perfectly summed up, surely it’s better to have something rather than nothing, high street agents like myself need to adapt otherwise the future is bleak. Customers will always be willing to pay for a quality service but there are also others that are purely being convinced by the on-line option.
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Something rather than nothing ….
Think we went to very different business schools.
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Looks like it is going really well for them with their 2 listings.
Where have all the real estate agents gone….. far too many people not willing to stand up and fight the likes of Purple bricks. I Believe they are flavour of the month, and sooner rather than later people are going to want a traditional/professional agent back not a bunch of muppets sitting in an office hundred of miles away who have never even seen the property.
If we don’t stand together none of us will be having turkey for Christmas Dinner!
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We have been told we are an “irritation”, “the industry is tired of us” and one of us has been actively prevented from raising standards in order to “keep things the way they always have been”
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Just wait till their existing vendor stock hear they can get it for a lot less!!!!!!!!!!!!!!!!!
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Of two most recent surveys completed, fees are not near the top of the list for consideration for potential vendors when choosing an agent.
So why are so many offering a service based on fees?
And when everyone provides an online-only service, how will you then be able to differentiate?
Cheaper, cheaper and a further race to the bottom.
Understand why vendors select agents and then ensure you service those needs. The main aspects are local knowledge and expertise, ability to affect sale price and most importantly, customer service.
someone mentioned here a fee of 1.3% was what they charge, giving an average of £3900 plus VAT.
Not high enough for a quality business. The best charge a lot more – why not aim to be the best?
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I’m getting quite pissed off at agents blatently breaking advertising standards rules, it makes me wonder why they are even there if no one does anything about it. I’ve reported 3 agents in my area who break the rules and nothing is done.
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Regulators:
Answer #1: They are not on the receiving end, so have no owenrship to the problem.
Answer #2: They are incompetent, more justyfing their daily workload as being efficient.
Answer 3: They are not accountable!!!!!!!!!!!!!!!!!
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Wow where to start?
Firstly by offering a supposedly online agency alongside your current existing brand you are instantly down valuing your current offering or maybe you do not value your current offering?
If the only thing that differentiates the two services is the fact that you are requesting the owners conduct their own viewings then you are merely offering a traditional estate agency that is not doing its own viewings and cutting its fees, therefore having to increase the amount of units its sells to provide the same service and have any chance of continued profitability. If you don’t double your units then you will either lose your customer service or profitability, more than likely both.
So assuming you have decided to sell twice as many properties to equal the same amount turnover. But the market is tightening and less people are moving and there are now new players in town that have millions to spend. So Why do traditional agents feel the need to compete with PB and the like most of these companies are glorified listing agents enabling the seller to list their property on portal websites. Differentiating your service and marketing and what the estate agent really offers and showing that it has a value has to be a better solution than trying to be a jack of all trade’s and master of none.
For years in the strong market I have pitched against agents saying they will find a buyer in a week, they can sell it easy, but sit with a seller, explain how you can get them the best price, and how you pay for the best staff, what it costs and truthfully how long the process takes and you will be half way there. We all know it is not a matter of weeks, it takes several months from start to finish and Mr or Mrs Seller you will be having a relationship with me for a number of months where I will be looking after you and my team paid well for selling your home.
If traditional estate agents increased their charges by a fraction then the majority of the public when understanding this will still continue to use you. This can be seen in hundreds of online reviews and client feedback showing they do value the service that they receive.
You don’t see a luxury brands offering their products side by side or trying to compete on price, they establish themselves as quality.
So before you start thinking you can’t beat the online brigade or you need to offer it, read all your reviews and you competitors and Imagine increasing your fee from 1% to 1.15% all of a sudden you could manage to let 1 in 10 instructions go to the cheap option and you would be no worse off, increase to 1.25 and you could let 1 in 4 go. Chances are many of these in a market which is becoming increasingly tougher will come back to you as the local expert who believed in his or her service.
There are now always going to be online agencies and traditional ones, and there will always be Primark and Hugo boss. It is a question of where you want to be, but having the two side by side is in my opinion commercial suicide.
Its easy to fall into the trap of reading everything online and seeing reports about PB and the like, but if you came into agency to help people move provide a personal service where indeed they can call whenever, pop in and have coffee and you will be there for them, then value it.
Don’t offer the service for peanuts, you will end up only being able to pay for monkeys with no way to incentive them and your clients won’t want to pop in, or worse you won’t have the time to spend with them if they do. Your service will slip, your profit vanish and you will lose.
Of course If your happy providing a listing service for under a £1000 with a centralised call centre and sales progression team that doesn’t answer calls and stresses the seller and the chain then go for it, it is a very different option.
Finally a question to ask yourself and your team …. can you and they list at least 5 reasons why you should charge more than your competitor next door and 10 more reasons why you charge more than an online option, if not then I fear you have an issue.
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You are right, good comments, could i ask to make it easier to read in future you pop a few line spaces in.
The interesting thing not looked at here is they have “A successful letting business”
Lad fresh from education in family business wants to have a say…
Let him deal with sales! – He is not a seasoned sales person (books only teach so much).
Finds he can only compete on fee.
Launches this new idea, Gives him a bit of “Beer money”
Thats how i read it anyway.
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One has to question the motive for such an adventure. Are they saying they are not successfal as they are? Are they saying they are trying for two bites of the cherry? If the answer to one is they are successful, they don’t need the adventure to work three/four times harder for the same result.
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Gareth Styles, I have to disagree we offer an online offering alongside our normal package.
About 1-2% of customer take it the rest all want the more expensive standard service
We also have our high-end service and again only 1-2% of customer take it.
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The opportunity for the onliners is not to compete with genuine top notch estate agents, it is to compete with the poor ones. The take some snaps, write some twaddle, upload it, accept any old offer brigade. Those who are poor at marketing, poor at selling, poor at negotiating etc… That’s it, that is their market.
You are not an “early adopter” or an “innovator” or a “disruptor” or competing with the likes of PB by “inventing” a similar offering. You are their target market.
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Blue
Pity the jist of your post and particularly the last line weren’t seen by more people, as they were put up quite late. Excellent observations I thought!
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How can an agency with two locations and just 4 stock even survive? I assume living of lettings income.
So here we have someone who isn’t performing staggeringly well in sales making the headlines with an illegal offer of £X+vat, I don’t get it..
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