I have heard from several newsagents in Queensland this week who are concerned at the move by Tatts to sweep retailer accounts twice a week.
This post today is at their request, to open the topic for discussion by those who already experience this and those who expect it to commence soon.
Please share your experiences.
Initially I thought it would be bad but it has actually been a good step. Having two sweeps a week that take smaller amounts makes it much easier managing my cash flow in my trading account. Its a + from me.
We have been on twice weekly sweeps since May and I actually quite like it. It appears to be easier to manage the cash flow and when there are larger payouts, you get the benefit earlier.
Here in SA we have had 2 sweeps for as long as I can remember and I think it works fine. I can’t see why there would be any issues with it.
Nothing to worry about in a well managed business.
I think the test if you are dealing with commission arrangements is, Do I have the money before I have to pay? In the case of lotto we do.
Compare this with magazines where you have to pay almost twice the value of the stock you will sell before you get the money.
not quite right Henry.
It depends on how much is paid via EFTPOS and when the provider puts those EFTPOS funds into your bank.
Public holidays can also affect this.
@ John
The sweep occurs 2+ days after the settlement period, this is pushed back or often only occurs weekly when there is a public holiday. If your eftpos takes more than 2 days to clear i would change provider.
This change should have no effect on a well run business.
I was initially wary of this however I find it actually works in my favour. My weekend eftpos is received on Tuesay with the 1st sweep on the Wednesday.
I don`t like the idea at all.
I have spoken to some NSW agents that have NEVER had an issue with cash flow until they started getting 2 sweeps a week. I can understand why Tatts wants to do this (probably had their fingers burned by closing agencies) but I think it will also force more closures to some struggling businesses….hopefully I`m proved wrong on this.
I would love to hear from agents where this has recently been introduced as opposed to say the SA agents who have had it forever.
I would also like to say that even the most WELL MANAGED business suffers from occasional cash flow issues…..how does 2 sweeps a week help the situation?
Does 2 sweeps a week also increase book keeping hours? (doing 2 settlements a week as opposed to one)
At the end of the day Tatts will do what they like anyway.
My understanding is that the two sweep system won’t come into effect in QLD until the next time we as agents have our lotto contract renewed (about another 4 years for me) or not at all or voluntarilly if there are agents still on lifetime contracts (would have been around since Moses was a lad) .
Can’t see it being that bad a thing tbh as you’re only really sweeping off the money you’ve taken on behalf of Tatts anyhow and if you’ve had a several big payouts (which I did one week to the tune of a nearly $10K above what I would normally expect) you’ll get the money back into your cashflow rather than having a negative week waiting for the next weeks sweep.