Telstra is the third major telco to cut commissions paid to newsagents on recharge sales. Newsagents received advice yesterday. What we don’t know is whether Telstra has ‘done a Vodafone’ and cut newsagents to 5% while paying Coles 16% as reported here previously.
Newsagents provide better service to recharge customers than Coles and better point of purchase presence so there is no justification for paying them two thirds less. Newsagents hand over their recharge revenue daily while Coles, in the case of Vodafone, hands it over monthly.
While these large telcos spend millions sucking up to consumers they are looking after major retailers and taking money from newsagents. Consider a $30.00 recharge sale. For that I get $1.50 commission. I lose 27 cents in credit card fees and am left with $1.23 for a two to five minute transaction. To enable me to complete the transaction I have $25,000 worth of capital equipment installed. That’s a lot of $1.23 transactions to costs the costs.
I understand that telcos around the world are cutting retailer commissions. What is unfair is the double standards in Australia. There is no justification for Coles paying Vodafone 16% and newsagents 5%.
Unfortunately, the government nor the ACCC is interested in this matter.
Join forces and go to another carrier as a protest!
People complains about banks as well ,yet they still with them.