PRINCE2 on LinkedIn

Please visit this link. I used to run a PRINCE2 group on LinkedIn, but have now closed it (no point in duplication)

Craig

Estate agents, time to change business model

Unsurprisingly estate agents are feeling the pain of the credit crunch, with 150 closing a week and monthly sales down from 14 to 7 properties on average. This is despite Scottish house prices continuing to rise.

The problem here is twofold. First of all with agencies closing, there is fewer competition for consumers and secondly the remaining competition will no doubt carry on with the same absurd practices which led their competitors to go bust on the hope that it won't happen to them.

When I received a quote from some local estate agents, I was alarmed that the rates they quoted of 0.75% and 1% of the sale price were at the lower end of the national average which according to this article is about 2%. Using the national average house price of £218,112 and the figures above, here's an estate agent income calculator:

1. Average house price = £218,112
2. Average estate agent commission = 2% = £4,362 commission
3. Average monthly sales = 7. Therefore average monthly income = £30,535

4 Estate agents per office average, average salary £50,000. Total wages bill approx £18,000. This means approx £12,000 per month profit to cover phone calls, office hire and so on.

Certainly in my case, advertising and other extras such as placement on websites, noticeboards and so on was paid for on top.

So what did I get for my 1% deduction on the sale price, according to the bill? "Professional charges including preparation of draft schedule, validated and printed, insertion of photo in local offices, placement on rightmove website and dealing with enquiries".

For that they get 1% of the sale price, and sole selling rights which mean:

"If missives for the sale of the property are concluded during the period in which the company has sole selling rights then the charges are payable even if the buyer was found by myself".

So basically the current estate agent model means that even if I find a buyer, they get to charge 1% of the sale price. Personally I think this is an undue benefit to the agent and as such possibly unfair (and therefore illegal and unenforceable) however the point here is that it's a huge commission when you consider the actual effort to achieve it. To sell a property for 400K for instance, there isn't a lot of actual effort the agent needs to do besides place adverts in papers and on websites and for that they get £4K+, something that I could employ a full time consultant for a week and still have spare change, yet the estate agent sits back for the calls and gets the money even if I find the buyer. Surely something wrong here.

This is essentially why so many agents are now going bust, and why so many went bust in the previous housing downturn in England in the early 90s. They are dependent on a very small number of very high profit margin sales and so they are extremely vulnerable to market fluctuations and in a quiet period, their profits can dry up very quickly indeed.

The solution naturally is to pay estate agents a proper fee. I would quite happily pay £100 to write a schedule and take photos. I would also, maybe, pay to advertise on websites although I think that the age of having to do so will pass in the next 5 years as more free listing sites emerge. I also don't mind paying to advertise in local papers if necessary or on a per viewing basis if the agent shows the house for sale. However, I object to paying £4K just for them answering the phone when I could do it myself.

So all in it should be perfectly possible to sell a house whatever its market value for a few hundred pounds + whatever extra marketing I want to pay for. The days of taking 1%, 2% of the sale price should be a thing of the past.

This of course means that estate agents have even less money coming in which means that they have to deal with a much wider customer base. Fair enough, I think that there are probably too many estate agents and if the numbers stay at their post-crash lows then this would be a good thing. By having more customers and a lower margin on each, they would overall make more money due to scale and also would be more immune to market fluctuations

e.g. selling 100 properties a month over a much wider customer base and making £500 on each means that the agent makes £50,000 per month rather than £30,000 and having the customers spread over a wider area means they are less vulnerable to local downturns. Incidentally £500 is the min fee that my agent charged, so clearly it is feasible at this level.

Am I the only one who thinks its time for a shake up in how house sales are charged?

Evidently not, see House Network. Any more like it?

Craig

DVD forced advertising hell

This picture sums up my attitude towards forced advertising and anti-skip menus on legitimate DVDS

Independent Scotland: £4Bn budget surplus

SOARING oil prices would give an independent Scotland a £4.4 billion budget surplus, making it one of Europe's richest countries, according to a new study.

The surplus would allow Alex Salmond to maintain existing levels of public spending, while cutting corporation tax from 28% to 12.5%, reducing income tax by 5p in the pound and still having £2 billion every year to invest in a Norwegian-style oil fund to safeguard Scotland against a future decline in North Sea oil revenue.

The study, based on Treasury oil revenue forecasts and official spending figures, has calculated that, without money from the taxation of oil and gas, an independent Scotland would have an underlying deficit of £7.8billion. But when £12.2billion of oil and gas revenues are included, Scotland would have a surplus of more than £4billion.

See the link for more info

OGC Logo embarrassment

Certainly made me laugh.

A tale of two websites

Having blogged about a more flexible e-commerce model for e-commerce before let me recap with some history.

The pioneers of e-commerce back in 1995 were Amazon and eBay. Both used a model that now forms the default business model replicated on nearly every other website. That is, you must register on the website and hold an account on the website with a login and password for you to buy anything. This is completely unnecessary, an invasion of users' privacy, does not help in any anti-fraud measures and is simply websites forcing users to hand over long term purchasing stats because they can rather than because it is an integral part of the transaction. We wouldn't tolerate this intrusiveness on the high street and we freely shop there without having to register with shops first, so why put up with this nonsense online?

This forced registration is excess data gathering and contravenes the third principle of the data protection act, namely that the information being handed over - the customer's buying history - is excessive for the purposes of the individual transaction. Sure it's convenient to have an account already set up if I don't want to enter my data repeatedly, but on the other hand it's really inconvenient having my every purchase tracked, and trying to log in when I'm required to have an account have forgotten the password and hate having yet another website where I have to remember yet another username and password.

Argos, a top 5 retail site in the UK is now bucking this 13 year old trend. You can register if you want to, but you don't have to. Well done Argos. Same goes for Visitscotland.com

Let me tell now the tale of two websites. When trying to buy a Chiminea Barbeque tonight, I found two very similar models at the same price.

One was on greenfingers.com which insisted I had an account or registered first, then when I went to register it said I couldn't because I already had even though when I went through the 10 minute forgotten password dance and logged in there was no account info there. The other was castironchimineas.co.uk which didn't require me to register and as an added triple bonus didn't have the other usual website irritations such as a mandatory courtesy title, needlessly separate first and last name fields (i.e. one field for the whole customer name) and finally allowed Scotland as a valid country. Naturally the latter site got my business, it was far simpler and easier to use.

Well done, castironchimineas, someone taking a leaf out of my book not only on flexible e-commerce, but also how to capture a customer name but also website usability guru Jakob Nielsen who said way back in 1995 that customer name fields should be combined into one.

Maybe 13 years after the e-commerce revolution started, we can start to get back to the basics of usability?

Craig

Labour's fortunes

As if things weren't already bad enough for Gordon Brown, this week sees revelations from both Cherie Blair and John Prescott which are entirely unhelpful for Gordon Brown's image and popularity. It's also looking like Labour will also lose the forthcoming by-election, previously a safe Labour seat.

For a government that was so obsessed with spin and image whilst Tony Blair was in power, the publication of these memoirs is clearly something that serves the interests of the authors and who clearly also appreciates the damage it will do to the party as they seek a record breaking 4th successive term.

Clearly they have their own financial interests ahead of such an achievement for the Labour party and would rather be doing their bit to get the Tories elected in 2010 than hold off for a couple of years. An author's fortune or Labour's fortunes?

Coming in 2010. My years with Tony Blair and how my muck raking in 2008 led to Labour's defeat at the polls.

Somehow I don't think that'll be a best seller, unless published by Conservative central office

Craig

Bring it on

In three unprepared words in a throwaway phrase, Labour has removed the biggest obstacle to democratic choice in Scotland: Whether the Scots should be allowed to decided whether or not to remain part of the UK

With those three words, the political process to make the biggest change to the UK for 300+ years really begins in earnest. A process which could see a large portion of the Scottish cabinet lose their seats post 2011, if the Tories haven't done the job first in 2010.

Bring it on indeed.

London curry

Lahore Kebabhouse, E1 1PY

Excellent food and service. Great prices, no pretentiousness. No mandatory tipping or service charge either.

Only slight drawback is that it's yet another place that has a VAT number but doesn't issue correct VAT receipts (with the amount of actual VAT paid on them).

Here's the link Lahore Kebabhouse.

There's also some rather excellent curry to be had at the Noor Jahan 2, 26 Sussex Place, London W2 2TH but again is let down by the inability to produce a correct VAT receipt showing the VAT paid, meaning that the tip amount gets paid to the VATman rather than the staff. Food is excellent here though and there is also a very good pub just across the road, the Victoria at 10a Strathearn Place which has great food (stops at 9:30pm) and great beer. Busy on Tuesday evenings in the pub. Anywhere that gets 5 pints on Fancyapint.com is worth a visit.

Craig

Nokia N95 unable to display message

I like the Nokia N95, the GPS is useful as is the unlimited internet access I have on it. The speakers deliver a pretty decent quality for a phone when I'm playing MP3s, free entertainment in the hotel bedroom when I'm travelling.

However, the most consistently annoying thing is that about half the e-mails I receive immediately present the error "unable to display message" when opening the message and then "Conversion error" when the message is opened. I then have to open the HTML attachment to see the contents, which is obviously nice to look at but since I'm using a browser, the email function of "reply" is no longer available.

What's stranger is that if I do press reply without opening the attachment, there is the text content of the message which a few seconds ago the phone reported it couldn't display because of the conversion error and was unable to display the message as a result of said "conversion error".

Is there a solution to this problem or a known cause? After all, if the phone can read the contents to show them when replying why is it presenting the message when the mail is opened?

thanks

Craig

Website reviews

I'm going to enjoy slagging off a few websites at http://www.reviewcentre.com/, especially next.co.uk who have about the most user hostile website I have ever used.

Let me just say that any website that doesn't use passwords by trying to do things its own way is off to a very bad start indeed. Mandatory dates of birth when they aren't selling age related goods and all I want to do is just pay by credit card is also questionable under the data protection act, 3rd principle.

"Personal data shall be adequate, relevant and not excessive in relation to the purpose or purposes for which they are processed". The wide definition of processing should be borne in mind when considering the Third Principle. In complying with this Principle, data controllers should seek to identify the minimum amount of information that is required in order properly to fulfil their purpose and this will be a question of fact in each case. If it is necessary to hold additional information about certain individuals, such information should only be collected and recorded in those cases."

So if I can buy age related goods on amazon.co.uk without telling them my actual date of birth, merely that I am old enough why do I need to hand over material for ID theft when I buy on next and they don't sell age related goods?




Craig

basic search engine failure

Why is it that 14 years after search engines took off, and millions of pounds of research later that in 2008 you still can't do something as basic and necessary as typing in your postcode to find out where the nearest chemist is that opens on a Sunday?

Even the NHS don't publish this info online, yet somehow they manage to give it to their contact centre staff. Staff who require to know your name, address and date of birth to answer a query.

How is this data collection justifiable when the information should be freely available online?

You can't search for post offices open on a Sunday either!

Craig

Better business regulation

I've submitted a few ideas to the better regulation website. If you want to cut red tape in business and improve productivity, why don't you do likewise?

Craig

The three rules of test driven development

A useful first step in proving the functionality of software, websites etc. Now all we need is a link up to ensure that the unit tests ensure what is being tested is actually what the end-user (as opposed to the customer) actually wants to use.

Craig

Tesco, every little helps

Every Friday night when I get back from work about 11pm, the shops have long since closed. The local shops all have lights out, the businesses all have lights out and the only store with lights on is the local Tesco.

Every light on, plain as day, just as if the store was open and full of customers. Yet, the store has been shut for an hour. No dimmer switch, not even just some of them on. Even the staff canteen lights are on long after the staff have left.

Tesco, you are constantly going on about how green you are and isn't it wonderful that your store in Wick is powered by renewable energy and how we'll get green points if we reuse our carrier bags and all that stuff. I actually reuse my carrier bags, I use them instead of bin bags meaning that I don't need to buy use-once bin bags. Back to the point though. Do you not think you might save on the 4.13m tonnes of carbon you eject into the atmosphere every year if you did one simple thing?

TURN OFF THE LIGHTS WHEN THE STORE IS SHUT

You know, like every one else is told to do. Or is your store security more important than the environment?

Remember Tesco, every little helps.

Craig

Scottish IT consultation with Enterprise minister

At an industry consultation earlier this week, ScotlandIS Members, including myself, met with the Enterprise Minister, Jim Mather. Issues raised included the increasing difficulty in accessing public sector contracts, the contribution the industry can make in helping to grow the economy, and the skills challenges the industry faces.

For more details including the White Paper prepared for the Industry Consultation see the page on the ScotlandIS site.

Craig

Paddington Tandoori

Paddington tandoori
Gloucester terrace, London

Avoid. Cash only, mandatory tip and no VAT receipt. Eat elsewhere.

Why do so many businesses rip off consumers with mandatory charges and incompetent billing?

Paypal's contender for most irritating and misleading information on the Internet

If you have a Paypal account linked to a bank account (i.e. so that you can withdraw money) then you are greeted with this abomination every time you attempt to pay by a credit card:

---

It's the default option to pay by bank account and you can't change it. However, I wonder if enough people wrote to customercare@paypal.com and asked them to change this spurious policy they might change their mind. When I want to spend my money, I'd like the option of specifying which account is debited by default, especially if I ever pay by mobile phone the contortions you have to go to to change the payment method from the default are a major pain. As someone with a bit of e-commerce experience (E-commerce lead for Scotland's tourism portal and Project Manager for Tesco.com grocery) I'd like to think that the laughable reasons Paypal gives could do with a bit of comment.

Paypal's text:

Before deciding to fund your payment with a debit or credit card, consider the benefits of paying with your bank account.

Paying with your bank account is instant and your payment will be completed immediately, as easy as paying with cash

My response: Indeed, however since paying with cash isn't an online option this is rather a bogus comparison, no? Paying with a credit or debit card of course is also instant as paypal gets an authorisation code when I pay with a credit or debit card, therefore the vendor can dispatch the goods immediately. No different to paying with a debit or credit card in a shop, as opposed to handing over my banking details there. Furthermore, if I could pay with cash online it wouldn't be as easy because then I wouldn't benefit from any Paypal or credit card protection would I?

Paypal statement:

Paypal keeps your bank account information safe and secure through military-grade encryption and 100% coverage of any unauthorised use.

My response: I hope you're not implying that my other info, such as my card details, isn't held to the same exacting standards? Which military-grade encryption would that happen to be by the way, Ancient Roman Army encryption of letter transposition or 256 bit AES? 100% coverage of any unauthorised use eh, you mean just like all the credit cards I have?

Paypal statemet:

Easy - use the same bank account for making payments and withdrawals

My response: This isn't easy at all. I want to make withdrawals to my bank account so that I can spend the money. I want to make payments from a credit card so not only do I benefit from up to 7 weeks interest free credit and have a few weeks notice of any fraud hitting my actual bank account when the payment is due, I also don't want to use my business bank account for payments because being a business bank account it is charged per transaction fees whereas my credit card is not. So, using the same account for payments and withdrawals isn't easy at all, in fact you trying to make me use the same account for both is a major pain in the arse.


Let me now redo the screen to say what Paypal is probably wanting to write

Dear Customer, please pay using direct payment because it costs us less in fees.

Which does strike me as rather odd, especially since I can go onto numerous websites and legally download MP3s for as little as 79p. Clearly these sites not only have to cover the artists' licensing costs and their own profits but also any credit card processing charges which let's face it must be pretty minuscule. Indeed, companies such as Protx offer flat rate transactions of 10p for high volume users and the kind reader is referred to realbusiness or even an article I wrote for further info on credit card charges and the options available.

So come on Paypal, come clean with customers and give us some choice instead of bogus excuses please. After all, it's our money.

thanks
Craig

p.s. I wonder if Paypal presents the same bogus arguments when you try to pay with one of their own branded credit cards?

All-hotels.com, no VAT

Be careful booking through all-hotels.com if you are a business. The prices may appear cheap, but they don't issue VAT invoices, this then means you don't get the usual 15% discount over the published rates. 15% = 100*(1-100/117.5) in case you were wondering.

There seems something rather odd about paying to stay in a hotel and there being no VAT due. Where did it go and who collected it?

Craig

review of The Ganges, Paddington

Great food, lousy service.

the service really let down the fine efforts of the chef, be warned.

first of all, when I was asking about the menu, the waiter wandered off.
The main course was served while I was still eating the starter.
The empty plates from the starter were left on the table when I was eating the main course.
There was no fresh cutlery brought for the main course.
I wasnt asked at any point if the meal was ok or if I enjoyed it.
Receipt isnt a proper VAT bill, it has to show the amount of actual VAT paid, not just a total.
Service for the dessert and bill were slow.

Great food badly let down by shoddy service - just as well the service isn't included.

See what other diners thought by looking at the reviews at the following link: