20/01/07 UPDATE. The concern expressed below has been well addressed by Bill Express announcing a sales game for newsagents. More here
Things have deteriorated in the two weeks since my Dec. 16 post about newsagents being ‘charged’ for training by Bill Express (ASX code: BXP) in the sale of its new BOPO debit card.
Newsagents are reporting being charged even where no training has been provided. Others have refused the training and still been charged. Many who have received training are reporting that it took a few minutes and they were still charged upwards of $200.00 including GST.
It is rare that a supplier keen to win new business would force training on their retail network. However, the arrangements between Bill Express and newsagents are such that this can happen. Bill Express is reducing a subsidy for one month to ‘charge’ for the training. The subsidy was put in place in 2003/04 to financially support newsagents while Bill Express brought billers on board. As the biller traffic has not been as great as expected, the subsidy has been maintained. Without it newsagents, would be losing money and this would create further problems for Bill Express.
Newsagent anger at having to pay for training is at a serious stage. Some are openly calling for class action to be taken against Bill Express.
From what I can see there is no correlation between the actual ‘charge’ and the cost of the training. This makes me doubt the justification for the charge. I am suspicious that this is more about Bill Express’ cashflow than training. Why else would they charge a business $200 for something which is easily handled over the phone in a few minutes?
Unless the situation is resolved in the next few days, Bill Express will have done irreparable damage to its relationship with many newsagents. The only reasonable solution now is the immediate reversal of the training ‘charge’. This will demonstrate good faith to newsagents and stop them from quitting their Bill Express contracts.
It is hoped that Bill Express realises the bad relations being developed. It also would appear that Bill Express has been making bad decisions with their advertising budget too. What does Bill Express on St Kilda jumpers mean to most newsagent customers? What about a national paper campaign to let people know they can pay their bills at the newsagents network? Most customers can hardly tell the difference between Billpay (Post) and Bpay (banks) so what would Bill Express on a football jumper mean to them? Sounds like they need some marketing and relationship advice. I hope you have some success with a reversal of the training charge. I did think that previously you mentioned the charge was up to $200? Now you are saying $200 upwards? Is there even more subsidy happening now?
Clem, I’ve heard of people being charged more than $200 once GST is added. The GST is a surprise since it is the removal of a subsidy and not a charge as such.
It is crucial for all newsagents to be public in airing their views on the BOPO training matter – for or against, so Bill Express know where they stand.
mark
Mark i have to agree with all you say. I have been following and contributing to the discussions on the Yahoo Groups forum and you are absolutely right in saying that the situation has deteriorated.
I am one of those who is openly calling for class action against Bill Express unless they seek to rectify this issue immediatly. It is unfortunate but i think it has come to the point at which this is necessary. I dont see the issue so much as being about the $200 but the precedent it sets for the future. And as you mention, the current state of Bill Express’s finances appears sceptical and if this were to worsen, well those rebates may become a thing of the past.
Just another mess in the newsagency industry, and no one to clean it up.
Jarryd, newsagents need to become engaged on this issue. While there is some noise, too many are sitting by and allowing the money to be taken without question. It may be that a complaint to the ACCC through their small business complaints area is a good start. It at least brings the matter to their attention and this, of itself, may be enough to get Bill Express to realise that they have made a mistake. The alternative is to consider a class action but that takes $$$ and unified newsagents and, probably, an association which is interested in the issue. Mark
How did the ANF let this slip through? Aren’t they the priciple vehicle through which the whole Bill Express situation was set up? They should have stomped on the idea straight away.
Clem, The ANF is hamstrung in that they have a contracted commercial relationship with Bill Express. This relationship and the commission which flows to the ANF precludes them commenting I think you’ll find. Mark
Joining the Bill Express class action……
Newsagents wishing to join the Class Action commenced by a group of newsagents in NSW can do so by emailing their details to Hank Spier at spierconsulting@netspeed.com.au. Hank is the Barrister involved in the action with Charles Sweeney QC.