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Cellular Phone Forum / Country Specific / UK Group / October 2003

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Retailer Profit Margin on Top-Up Cards

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Davo - 10 Oct 2003 14:49 GMT
Does anyone know what proportion of mobile phone top-up cards' face value
the retailer gets to keep?

And if anyone happens to know the proportion for prepaid phone cards, that
would be great too!

Thanks,

Dave
Dr Zoidberg. - 10 Oct 2003 14:54 GMT
> Does anyone know what proportion of mobile phone top-up cards' face
> value the retailer gets to keep?

It used to be about 5% when I sold them , but that was a good few yeas back
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Webmaster - 10 Oct 2003 19:03 GMT
Davo reckoned that:
> Does anyone know what proportion of mobile phone top-up cards' face value
> the retailer gets to keep?

Very little. Typically around 1% to 2%, which is usually destroyed by
people who pay for a £5 top-up using a bloody credit card.
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Ivor Jones - 10 Oct 2003 20:42 GMT
> Davo reckoned that:
> > Does anyone know what proportion of mobile phone top-up cards' face value
> > the retailer gets to keep?
>
> Very little. Typically around 1% to 2%, which is usually destroyed by
> people who pay for a £5 top-up using a bloody credit card.

Which is why £5 vouchers went. I used to know the manager of my local
Orange shop quite well before he moved to another area, he told me that
they were always selling out of them, mostly to schoolgirls..! They'd come
into the shop and put a fiver on their phones, then they'd be back the
following day or the day after for another fiver..!

Ivor
Webmaster - 10 Oct 2003 22:39 GMT
Ivor Jones reckoned that:
> Which is why £5 vouchers went. I used to know the manager of my local
> Orange shop quite well before he moved to another area

What was his name?

> he told me that
> they were always selling out of them, mostly to schoolgirls..! They'd come
> into the shop and put a fiver on their phones, then they'd be back the
> following day or the day after for another fiver..!

I see a core base of about 50 peaople every week who top up with a tenner.
None of them are prepared to listen when I explain they may be better off
under a contract. Quite annoying really.
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Odd Bod b'God - 12 Oct 2003 17:26 GMT
> Does anyone know what proportion of mobile phone top-up cards' face value
> the retailer gets to keep?

Depends how they are purchased...

When I looked at this a year or two ago the %age was around 7% for the big
reatilers who buy direct (Carphone Warehouse, Sainsbury's etc). For the
smaller corner shop types they get around 4% depending on the percentage
charged by the wholsaler. I think Food Sellers received 7% and kept 3%,
passing the rest onto the retailer...

HTH

OBG
 
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