Vodafone has cut the commission made by newsagents in the UK selling mobile recharge to just 1%.
If this happened in Australia, newsagents would make thirty cents on a $30.00 recharge voucher sale. I’d have to consider seriously whether to continue offering the product.
The current margin structure is dangerously slim. I know we can achieve more if we sell handsets but that has another traffic-flow and labour cost making to not viable for everyone.
1% is an insulting margin that doesn’t cover the cost of transaction. I reckon its time to bail out of this service for UK retailers. But of course it is the sort of margin that many bill payment services offer so probably Vodafone has learnt that many independent store owners will accept this pitifully low payment.
Daft.
I love Vodafone. Their coverage is that bad I do a roaring trade selling Optus sims to their customers who find that once they leave the city they have no service. As for 1% commission if they tried it here I’d refuse to sell it (assuming no legal implications).