Newsagents and other retailers in the UK are boycotting the sale of Vodafone recharge this weekend for the third time in a row with the company over its cut in retailer commission. See Mobile News International for the full report. There is a website, www.topupratecut.biz, for retailers to register their support for the campaign.
A public campaign like this is healthy. The small retailers are using the only leverage they have, numbers.
Commission on mobile phone recharge, transport tickets, lottery products, any agency type business really, is a big issue for newsagents. With rent increasing at least 5% a year and labour increasing at least 4% a year, commission cuts push the business behind in real terms. The end result of such moves can only be less retailers and no on wins from that.
The only way boycotts work is if they are on a national scale with at least a 80% uptake of stores. Anything less will not bring about enough pain for the supplier to change anything. National associations will not have any power to wield unless they can show to suppliers that the majority of members will boycott if needed. Then and only then will we get a fair go, why is it that coles/woolies get better commissions, it is because if they didn’t they would no longer stock that supplier in any store and all stores act as one. It is time all newsagents woke up and acted as an industry not a group of individuals.
i would be with ant plan to do so …just imagine no lotto sales for a week
According to the sales rep of one of the bank, Coles and Woolworth get higher commission because they bypass all the distributors and have their own equipment (i.e. there is no third party getting any commission on providing the service). If newsagents could come up together and provide their own systems, and deal straight with Optus and Vodafone (in National Scale). Then, perhaps we could get more commission? Woolies give 10% off on the vodafone recharge (better than the supplier gave us on commission, ridiculous isn’t it?).
Another classic case of our retail channel just getting thrown the scraps when it comes to commissions,we really do get shafted at just about every turn, we surely must be the softest targets for our suppliers.Page 6 of todays Herald Sun advertising
25% OFF $100 Recharge vouchers(not just vodaphone either ,all the 4 big providers,telstra,voda,optus and virgin)
Such a huge discount and obviously still a margin left for profit for them,what is their actual commission? it must be at least more than 25% what a joke we dont get even 20% of that,surely our combined purchases must have significant enough volume to warrant a better commission!
Oh how pleased I am to be told Telstra is reducing commission on recharges from Oct 11, I guess they will all start now.
i hope woolie discount 20% like the other day:)