Over the weekend I received the following feedback from Vincent Jennings, the CEO of the Irish Retail Newsagents Association outlining how they handled a cut in Vodafone commissions similar to those inflicted on Australian newsagents by Vodafone:
greetings from Irish republic. The Irish Retail Newsagents Association had a battle with Vodafone over 4 years ago. The commission for e-top up had stood at 10%.Vodafone reduced the commission paid to the suppliers of the terminals(our suppliers),this was passed on to us. The I>R>N>A> led the way in recommending a handling charge, equal to the lost margin to all e-top up agents. The retailer still gets their 10% margin, his trade did not desert him(it is a convenience item) and despite High Court threats, extensive and expensive campaigns against the extra charges from Vodafone ,attempts to divert trade away from our members(we control over 85% of this trade)websites from Vodafone to sell their top-up ,links with banks to provide through ATM s we still manage to sell the vast majority of top ups in the country. If airlines, ticket agencies and other enterprises, many of them with greater opportunities for profit than our sector can implement handling or service charges why not the newsagent? The great are only great because we are on our knees, let us arise!
best of luck vincent jennings,
c.e.o. I.R>N>A>
Newsagencies are small businesses. They can ill afford the 37.5% cut in commission to 5% by Vodafone – especially in the light of at least one national supermarket chain getting a 16% commission.
I complained to the ACCC that Vodafone was able to pay the supermarket because the newsagents have taken a hit down to 5% but the ACCC has decided not to take the matter further. This is another blow to small business. There is no doubt in my mind that Vodafone could not afford to do this if newsagents were not gouged.