I have prepared a quick four-question survey for newsagents on selling mobile phone recharge. You can participate in the survey here. I created the survey because of the increasing number of newsagents I hear saying they will quit the product category given falling commission. I’ll publish the results here.
In 2005 I wrote here about a copy of a Vodafone mobile phone recharge invoice for a major supermarket showing their commission was 16% while for newsagents we were on 5%. I suspect the difference between what supermarkets get and what we get continues.
I think it is Woolworths offering 15% discount on Vodaphone recharge at present. No way a small retailer can compete with this on margins currently provided.
I know we make no money on this, we do it as a service as it isn’t a big deal.
The only way to get the same discount as supermarkets is for EVERY newsagent and convenience store to stop selling phone credit till they change. Like that would happen!
While we are happy to sell on their behalf for a crappy return nothing will change.
The last I heard from a postie I know, Aust Post staff get a 10% discount on recharge so they’re margin would be significantly higher than that I expect.
Yet another free service provided by your friendly newsagent…..well when I say free I mean less the cost of service and banking, bank fees, terminal fees and whatever else.
If every newsagent in Australia turned off their recharge for a week, would the Telecom companies notice – Id actually reckon not.
No cause they would just go to the next shop
Then why are we doing it….I ask myself whilst giving myself an upper cut.