Resellers to lobby Vodafone after top-up commission cut

Some resellers of Vodafone top-up vouchers are considering forming a group to lobby with the mobile operator after their commission was cut to three per cent earlier this month.

A stationer told The Times Business that this was the fourth cut in commission in six years. Resellers originally had 10 per cent commission on top up vouchers but it was later cut to seven, then five per cent.

Resellers now make just €0.25 on the sale of a €10 voucher, the stationer said.

"Vodafone imposes a minimum €700 order on top-up vouchers and we hardly make a profit on them now. They are almost not worth stocking," the stationer said. "We are prepared to form a group to ask Vodafone to raise the commission to what it used to be."

Another small business owner said he refused to stock Vodafone top-up vouchers any longer until the commission was raised.

"A group of shops are trying to do something about this," he said. "Some shop owners have suggested we should stock only the higher value vouchers."

A Vodafone official told The Times Business that the commission on top-up vouchers stood at 10 per cent when there were just 23 customers in Malta.

"Today there are almost 400,000 customers and 80 per cent use top-ups," the official said. "We are talking of smaller percentages but the number of top-ups sold has increased to much higher proportions." The official said Vodafone had not been contacted by resellers saying they refused to stock its cards any longer.

"We have reduced the minimum order by 40 per cent so that resellers tie less money in stocks of top-up vouchers. Vodafone is the only operator providing a delivery service from order in less than 24 hours, enabling resellers to order just in time. We have over 2,000 resellers but this figure grows monthly as we constantly receive requests from more resellers. Top-up vouchers are considered to generate walk-in business."

Asked what incentive resellers had to stock Vodafone top-ups, the official replies: "Three per cent commission and providing a service to clients."

Shopowners said they now expected other operators Melita and Go to follow suit, and cut commission.

However, a spokesman for Melita confirmed the commission to resellers stood at five per cent. Go had no comment to make.