This is part of an invoice sent to a Coles store over a year ago listing the recharge products purchased and the commissions paid. It shows that they earn twice the commission newsagents earn. I know from nearby newsagents that they are likely to do considerably more recharge business than Coles.
Optus is preparing to reduce its commissions to newsagents again. My understanding is that commission on recharge will drop to 5%. I suspect that Coles will be on 12% or more for the same product. Plus, they have the benefit of the cash received for up to 30 days as they pay monthly. Newsagents pay daily.
Companies such as Optus have an obligation to be fair in their dealings with small businesses. To cut newsagent commission while paying Coles three and more times as much would be morally unconscionable. I hope that Optus considers this as it navigates its planned commission cut.
Do you personally deal direct with Optus, or are you selling through the Bill Express terminal? Coles would be buying direct I imagine and paying for all the infrastructure, but Bill Express provides you with a free (at the moment through subsidies) terminal, so Bill Express needs their cut. So while you say you actually pay daily, do you mean you pay as you sell, so no stock is held. There used to be bigger commissions when we all had to buy the phone cards up front, but those days of cards that ran out of date are gone thank goodness.
The cutting of commissions still stinks, there is no arguement on that, I am not happy to do twice the work for measly returns, but if you check with overseas systems, they are getting cut even more apparently. (A friend told us 3 & 4 % is normal some places)
Clem I purchase recharge product from the same wholesaler as Coles. Optus, Vodafone et al set their retailer commissions direct.
Coles use Dialtime terminals (owned by Bill Express).
I use the exact same setup as Coles for half the commission.
Well that does really stink. No help from ANF?
I’m not sure what the ANF is doing about Optus’ plans to cut our commission. I understood they met with Vodafone last year and the 37% commission cut remained. I understand that commissions will fall – however they must fall fairly across all retailers.
Especially when the retailers who get to keep the “premium” commissions are not having high sales.
Hi All
Forget about ANF.they only wants you and me become a member . Wait and see?????? what ANF can do????
It is my understanding that the ANF negotiated the whole Bill Express system, so that while each newsagent signs separately they are signing a standard already determined agreement. If you don’t join you don’t get a voice. I would think instead of wait and see you would be better to make contact yourself? Wait and see just means you leave your income up to other people.