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Extra charge on phone credit

  • 05-03-2010 3:20pm
    #1
    Registered Users, Registered Users 2 Posts: 9,205 ✭✭✭


    Whats the story with this, I ask for 10 euro's credit in supervalu, machine prints the credit out, hand in my 10 euro note and the woman say's "eh sorrrrrrrrri its 10.50 we've a 50c charge on it" :rolleyes::rolleyes:

    Robbing b%$tards I mean not only a 50c charge on a tenner credit but they even have the cheek to ask for an extra 1 euro on twenty euro's credit:confused:


«1

Comments

  • Closed Accounts Posts: 5,070 ✭✭✭ScouseMouse


    Complain to the network

    If a can of coke goes up from the manufacturer, so does the retail price to the customer.

    Phone credit has gone up 4 times in the last 3 years. And the shop is expected to carry on charging the same price? Get a grip. The shop has every right to charge more.

    If you dont like it, dont buy it. or complain to the network, they are the ones that increased the cost price.

    A shopkeeper


  • Registered Users, Registered Users 2 Posts: 9,205 ✭✭✭Gringo180


    Complain to the network

    If a can of coke goes up from the manufacturer, so does the retail price to the customer.

    Phone credit has gone up 4 times in the last 3 years. And the shop is expected to carry on charging the same price? Get a grip. The shop has every right to charge more.

    If you dont like it, dont buy it. or complain to the network, they are the ones that increased the cost price.

    A shopkeeper
    Well isn't it any wonder your a shopkeeper:rolleyes:

    Rip off - To steal from,To exploit, swindle, cheat, or defraud.

    Ive asked for 10 euros credit not 10.50, if I pay the 10.50 I will still only receive 10 euros credit, so thereby im getting cheated, robbed or whatever you want to call it, of 50c by you the retailer!

    So now why dont you go and complain to the phone networks instead of ripping off us customers of our hard earned cash, so I think you should get a grip!


  • Closed Accounts Posts: 5,070 ✭✭✭ScouseMouse


    Gringo180 wrote: »
    Well isn't it any wonder your a shopkeeper:rolleyes:

    Rip off - To steal from,To exploit, swindle, cheat, or defraud.

    Ive asked for 10 euros credit not 10.50, if I pay the 10.50 I will still only receive 10 euros credit, so thereby im getting cheated, robbed or whatever you want to call it, of 50c by you the retailer!

    So now why dont you go and complain to the phone networks instead of ripping off us customers of our hard earned cash, so I think you should get a grip!

    I dont have a problem with it...

    I came up with a solution which keeps the status quo - you are the one with the problem.


  • Registered Users, Registered Users 2 Posts: 306 ✭✭nmesisca


    I dont have a problem with it...

    I came up with a solution which keeps the status quo - you are the one with the problem.

    man you're the one with an attitude though.

    OP: was there sign or something highlighting the surcharge?


  • Registered Users, Registered Users 2 Posts: 634 ✭✭✭jimoc


    Buy it online direct from the network,
    buy it from a pass machine,
    buy it from an automatic kiosk that doesn't charge extra,
    buy it online through your online banking.
    buy it through your phone by ringing the top-up number that ever network has.

    Why even bother getting it from a shop if you getting high blood pressure for the sake of 50 cent?


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  • Closed Accounts Posts: 827 ✭✭✭Wolflikeme


    Fact: Shops wanted more money from the networks for selling credit. Networks didn't want to pay them. Shop increases price of credit.

    As previous poster said: By direct from the network. With VF and maybe the others (not sure) you can pay 20e for 20e call credit and get 10% extra free.

    Wouldn't bother buying from any shops.


  • Closed Accounts Posts: 5,070 ✭✭✭ScouseMouse


    nmesisca wrote: »
    man you're the one with an attitude though.

    OP: was there sign or something highlighting the surcharge?

    Probably caused by hearing this on a daily basis.

    Something that used to cost me about 9 euros, now costs about 9.70

    Its just plain unreasonable to expect me to take the hit.


  • Moderators, Science, Health & Environment Moderators Posts: 21,692 Mod ✭✭✭✭helimachoptor


    How people have short memories. A few years ago the mobile networks reduced the commission paid to retailers on the top ups sold. So in order to keep their margins the retailers put the margin on top of the credit price. People will still buy the credit anyway.


  • Closed Accounts Posts: 5,070 ✭✭✭ScouseMouse


    Wolflikeme wrote: »
    Fact: Shops wanted more money from the networks for selling credit. Networks didn't want to pay them. Shop increases price of credit.

    Sorry thats wrong. Shops didnt want any MORE money.

    They just reacted to a cost-price increase.


  • Registered Users, Registered Users 2 Posts: 9,205 ✭✭✭Gringo180


    nmesisca wrote: »
    man you're the one with an attitude though.

    OP: was there sign or something highlighting the surcharge?
    Didnt see any sign bud.
    jimoc wrote: »
    Buy it online direct from the network,
    buy it from a pass machine,
    buy it from an automatic kiosk that doesn't charge extra,
    buy it online through your online banking.
    buy it through your phone by ringing the top-up number that ever network has.

    Why even bother getting it from a shop if you getting high blood pressure for the sake of 50 cent?
    Its not just the sake of 50 cent its the principle, if we pay this they'll keep on upping the charge, where will it stop?


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  • Registered Users, Registered Users 2 Posts: 634 ✭✭✭jimoc


    Gringo180 wrote: »
    Didnt see any sign bud.


    Its not just the sake of 50 cent its the principle, if we pay this they'll keep on upping the charge, where will it stop?

    The networks don't want shops selling their credit, they want to sell it directly themselves so that they don't have to pay commission.
    The charge upping will stop when every shop in the country tells the mobile networks to take their machines away and gives the networks what they want, a monopoly on where people can get credit for their phones.


  • Registered Users, Registered Users 2 Posts: 231 ✭✭KevArno


    To be honest OP you are not seeing it from the shops perspective, and I know people will say that you don't have to as you are the punter, but unfortunately other events further down the chain will have an impact on the end retailer, so the attitude could be a little more sympathetic.

    You may be buying €10 credit, but to do that you are engaging the service of the retailer, who is not doing it for free. If you have an issue with this then your problem is with the network and one of its distribution channels. Like previous posters have said, buy direct/dont' buy at all... But this is not a rip off.


  • Closed Accounts Posts: 5,070 ✭✭✭ScouseMouse


    The charge upping, or the cost price increases?

    I didnt realise thats what they were at. I thought they were just trying to increase their profits at the shops expense...


  • Posts: 0 [Deleted User]


    Shops will charge what people are willing to pay. Always have, always will.

    Solution: Don't buy phone credit from shops.

    Simple.

    I have zero sympathy for people who get ripped off in this manner tbh.


  • Closed Accounts Posts: 5,070 ✭✭✭ScouseMouse


    KevArno wrote: »
    To be honest OP you are not seeing it from the shops perspective, and I know people will say that you don't have to as you are the punter, but unfortunately other events further down the chain will have an impact on the end retailer, so the attitude could be a little more sympathetic.

    You may be buying €10 credit, but to do that you are engaging the service of the retailer, who is not doing it for free. If you have an issue with this then your problem is with the network and one of its distribution channels. Like previous posters have said, buy direct/dont' buy at all... But this is not a rip off.

    I had a customer come in here with a phone credit she bought from an automated machine as it didnt charge a service fee. She bought the wrong one and asked me to help her.

    I promptly referred her to the seller. Then she realised she couldnt do that as it was a machine with noone to help her.

    Perhaps she will appreciate and support her small local shop in future....


  • Registered Users, Registered Users 2 Posts: 1,522 ✭✭✭neilthefunkeone


    This has been going on for years... Jebus.. I top up using my online banking.. 20 euro gets me 20 euro!!!

    Its only going to be rip off Ireland if people continue paying for the rip off services...


  • Posts: 0 [Deleted User]


    I had a customer come in here with a phone credit she bought from an automated machine as it didnt charge a service fee. She bought the wrong one and asked me to help her.

    I promptly referred her to the seller. Then she realised she couldnt do that as it was a machine with noone to help her.

    Perhaps she will appreciate and support her small local shop in future....

    Small shops that rip people off? Great support alright.

    The 5% tax that small shops impose is nothing short of shamefull.

    Rip off Ireland indeed.


  • Closed Accounts Posts: 5,070 ✭✭✭ScouseMouse


    rarnes1 wrote: »
    Small shops that rip people off? Great support alright.

    The 5% tax that small shops impose is nothing short of shamefull.

    Rip off Ireland indeed.

    Tax? What tax?

    What thread are you reading ?:eek:


  • Posts: 0 [Deleted User]


    Tax? What tax?

    What thread are you reading ?:eek:

    Sorry a "service charge" :rolleyes:


  • Closed Accounts Posts: 827 ✭✭✭Wolflikeme


    jimoc wrote: »
    The networks don't want shops selling their credit, they want to sell it directly themselves so that they don't have to pay commission.
    The charge upping will stop when every shop in the country tells the mobile networks to take their machines away and gives the networks what they want, a monopoly on where people can get credit for their phones.

    A monopoly on where people can get credit? That sounds mental!!!

    Do you know how many different avenues to acquire credit that don't charge a surcharge? I think of 5 of the top of my head! You don't need to go to a shop, there are many more convenient ways.


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  • Closed Accounts Posts: 5,070 ✭✭✭ScouseMouse


    rarnes1 wrote: »
    Sorry a "service charge" :rolleyes:

    The service (staff) have to be paid.

    Like everything else in retail. If the cost price goes up, so does the retail.

    Phone credit is no different.


  • Closed Accounts Posts: 827 ✭✭✭Wolflikeme


    I had a customer come in here with a phone credit she bought from an automated machine as it didnt charge a service fee. She bought the wrong one and asked me to help her.

    I promptly referred her to the seller. Then she realised she couldnt do that as it was a machine with noone to help her.

    Perhaps she will appreciate and support her small local shop in future....

    A machine with nobody to help? Eh no. That would be the network that would help. If there was a problem with a machine issuing vouchers then it would be referred by the network to the vendor. In the meantime, there are processes in place to ensure the customer would get there credit.


  • Closed Accounts Posts: 827 ✭✭✭Wolflikeme


    Sorry thats wrong. Shops didnt want any MORE money.

    They just reacted to a cost-price increase.

    Oh yeah! Apologies.


  • Posts: 0 [Deleted User]


    The service (staff) have to be paid.

    Like everything else in retail. If the cost price goes up, so does the retail.

    Phone credit is no different.

    Then why do Dunnes Stores not have this charge?

    Or more importantly, why doesn't every small shop/garage have it?

    It's a blatent rip off. Another reason to never shop in small shops.


  • Closed Accounts Posts: 5,070 ✭✭✭ScouseMouse


    Wolflikeme wrote: »
    A machine with nobody to help? Eh no. That would be the network that would help. If there was a problem with a machine issuing vouchers then it would be referred by the network to the vendor. In the meantime, there are processes in place to ensure the customer would get there credit.

    Eh YES! The network wouldnt even listen to her. There was nothing wrong with the credit. She bought the wrong network.

    As it was a machine, there was noone to help her. Only a mobile number for "customer services". It is situated in a pub and the barman just shrugged his shoulders.

    The "processes" you speak of are of no use to someone who has no money to buy more credit and wait while they try to get a refund from someone on a mobile phone elsewhere.


  • Closed Accounts Posts: 5,070 ✭✭✭ScouseMouse


    rarnes1 wrote: »
    Then why do Dunnes Stores not have this charge?

    Or more importantly, why doesn't every small shop/garage have it?

    It's a blatent rip off. Another reason to never shop in small shops.

    Because they are big enough, and make enough money to absorb the extra cost, while a lot of small shops couldnt.

    Thats why.


  • Closed Accounts Posts: 827 ✭✭✭Wolflikeme


    Eh YES! The network wouldnt even listen to her. There was nothing wrong with the credit. She bought the wrong network.

    As it was a machine, there was noone to help her. Only a mobile number for "customer services". It is situated in a pub and the barman just shrugged his shoulders.

    The "processes" you speak of are of no use to someone who has no money to buy more credit and wait while they try to get a refund from someone on a mobile phone elsewhere.

    If it's a case they do it at an ATM it's easily fixed. Should be something (there has to be) in place for purchasing a ticket out of a machine.

    It appears then whoever she was speaking at whichever network wasn't very helpful.

    And I doubt anyone's going to be that stuck that they spend they're last tenner on phone credit!!!


  • Posts: 0 [Deleted User]


    Because they are big enough, and make enough money to absorb the extra cost, while a lot of small shops couldnt.

    Thats why.

    So what?


  • Closed Accounts Posts: 5,070 ✭✭✭ScouseMouse


    Wolflikeme wrote: »
    If it's a case they do it at an ATM it's easily fixed. Should be something (there has to be) in place for purchasing a ticket out of a machine.

    It appears then whoever she was speaking at whichever network wasn't very helpful.

    And I doubt anyone's going to be that stuck that they spend they're last tenner on phone credit!!!

    You misunderstand.

    Its a standalone machine as you see in pubs and some shops.

    Its not an ATM. It sells phone credit and only phone credit.

    The premises may get something for having it there but they have nothing to do with it. Its an outside company like vending machines.

    The lady bought the wrong network and was stuck with it. But she had some cheek asking ME to fix it.


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  • Closed Accounts Posts: 5,070 ✭✭✭ScouseMouse


    rarnes1 wrote: »
    So what?

    Very intelligent post there. Shows a lot about your reasoning.


  • Closed Accounts Posts: 827 ✭✭✭Wolflikeme


    You misunderstand.

    Its a standalone machine as you see in pubs and some shops.

    Its not an ATM. It sells phone credit and only phone credit.

    The premises may get something for having it there but they have nothing to do with it. Its an outside company like vending machines.

    The lady bought the wrong network and was stuck with it. But she had some cheek asking ME to fix it.

    No I know what it is, I was just using the example that things are in place for other means so I'm sure they have to be for stand alone machines.

    Well maybe she was just asking for help, nothing cheeky about that.


  • Closed Accounts Posts: 5,070 ✭✭✭ScouseMouse


    My point about being cheeky is based on the fact she only gave out to me last week about the surcharge so started going to the pub for her credit.

    Then she bought the wrong one and she had noone to help her.

    Poetic justice?


  • Registered Users, Registered Users 2 Posts: 9,205 ✭✭✭Gringo180


    My point about being cheeky is based on the fact she only gave out to me last week about the surcharge so started going to the pub for her credit.

    Then she bought the wrong one and she had noone to help her.

    Poetic justice?
    Human decency would of helped the lady, but I guess thats out of the question for some greedy shopkeepers like yourself:rolleyes:

    I'd highly doubt you get served with a smile in your shop, judging by your attitude.


  • Closed Accounts Posts: 1,574 ✭✭✭falan


    In my small town there are about 6 or 7 shops who sell credit. Only one of them charges extra for credit. Same shop/petrol station charges 5.25eur for a breakfast roll that is like rubber when everywhere else charges 3.00euro....

    NOW THATS RIP-OFF IRELAND:mad:


  • Closed Accounts Posts: 5,070 ✭✭✭ScouseMouse


    Gringo180 wrote: »
    Human decency would of helped the lady, but I guess thats out of the question for some greedy shopkeepers like yourself:rolleyes:

    I'd highly doubt you get served with a smile in your shop, judging by your attitude.

    Well you doubt wrong then.

    There is quite a good atmosphere in my shop.

    I am known for slagging everyone.

    But then, you can believe whatever you like.


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  • Moderators, Technology & Internet Moderators, Regional South East Moderators Posts: 28,536 Mod ✭✭✭✭Cabaal


    Complain to the network

    If a can of coke goes up from the manufacturer, so does the retail price to the customer.

    Phone credit has gone up 4 times in the last 3 years. And the shop is expected to carry on charging the same price? Get a grip. The shop has every right to charge more.

    If you dont like it, dont buy it. or complain to the network, they are the ones that increased the cost price.

    A shopkeeper

    But you could argue that a shop has a phone credit machine in order to bring in customers who will then likely buy other items which the shop makes profit on.

    The same example applys to Lotto machines....you don't see the shop charging 20c extra on a quickpick because they can't.

    Bottom line is the shop is only charging extra because they can and want extra money, of course shops that do this risk loosing ANY customers who might go in to buy credit and end up buying something extra because they'll be put off by this extra "super service charge"....so really the shops will be affecting their own business in other ways.

    Unless of course the shop is at a total loss from running a phone credit machine (makes 0 profit)...which I highly doubt is the case...care to confirm or deny this superscouse? :)


  • Registered Users, Registered Users 2 Posts: 6,141 ✭✭✭colrow


    I got hit with this rip off in the newsagent in Cork Airport a couple of years ago. I was dead pee'd off, they didn't tell me about there €2 charge till after they gave me the €20 topup. I needed the credit to use my fone then, and I put it down to an airport ripoff. I usually use my online banking to top up now.


  • Closed Accounts Posts: 16,801 ✭✭✭✭Gary ITR


    I don't think the retailers are wrong to do this, I blame the networks. The retailer exists on making a profit, if they didn't make a profit thay can't stay open.

    Already there is minimal margin on cigarettes, which can be 1/3 of some retailers turnover and in some cases it actually costs retailers money to sell cigarettes when you take into account the percentage of their turnover that they pay to trade under a brandname (Spar etc)

    The margin on phone credit is in around 3% iirc, this won't cover the cost of the floor you walk on, the door you walk through, the heat you absorb, the light you see with and the staff member that served you your phone credit. It is a pox that we are left to pay for it but it's not the retailer I blame, it's the poxy networks.

    For those of you that say 'tough' the the local small shop need to gro up a tad too, I mean where do you go when you need something? Also an average convenience store has a staff of between 6-12 people most of who would live in the locality.


  • Moderators, Technology & Internet Moderators, Regional South East Moderators Posts: 28,536 Mod ✭✭✭✭Cabaal


    Onkle wrote: »
    Already there is minimal margin on cigarettes, which can be 1/3 of some retailers turnover and in some cases it actually costs retailers money to sell cigarettes when you take into account the percentage of their turnover that they pay to trade under a brandname (Spar etc)

    If a shop becomes part of a franchise this is the choice of the shop, the consumer didn't force the shop to do this.

    Plenty of shops up and down the country don't have franchise's
    The margin on phone credit is in around 3% iirc, this won't cover the cost of the floor you walk on, the door you walk through, the heat you absorb, the light you see with and the staff member that served you your phone credit. It is a pox that we are left to pay for it but it's not the retailer I blame, it's the poxy networks.

    You make it sound like the only thing a shop sells is phone credit, as per my last post things like phone credit often exist simply to draw customers in who will then likely purchase some other item.

    The same example can be applied to Lotto machines or a shop that has an ATM in their premises.....what percentage of profit do they get off an ATM?

    For those of you that say 'tough' the the local small shop need to gro up a tad too, I mean where do you go when you need something? Also an average convenience store has a staff of between 6-12 people most of who would live in the locality.

    The local shop by adding on this extra charge are ensuring that people WON'T get credit from them and if they are not getting credit then they are not going to pick up that something extra when they are in the premises.

    As such the shop is loosing any chance of making profit off other items that the customer may buy.

    Some shops will just chance their arm I've seen it time and time again over the years and this is coming from experience in the grocery/off-license/pub trade.

    If they think they can charge extra and get away with it then they will,


  • Closed Accounts Posts: 5,070 ✭✭✭ScouseMouse


    Cabaal wrote: »
    But you could argue that a shop has a phone credit machine in order to bring in customers who will then likely buy other items which the shop makes profit on.

    The same example applys to Lotto machines....you don't see the shop charging 20c extra on a quickpick because they can't.

    Bottom line is the shop is only charging extra because they can and want extra money, of course shops that do this risk loosing ANY customers who might go in to buy credit and end up buying something extra because they'll be put off by this extra "super service charge"....so really the shops will be affecting their own business in other ways.

    Unless of course the shop is at a total loss from running a phone credit machine (makes 0 profit)...which I highly doubt is the case...care to confirm or deny this superscouse? :)

    As for the claim, it brings people in and they spend money on other things, in practice, that often is wrong.
    The example of Lotto is incorrect because we took in the lotto at a margin of six percent. They have not increased the price. So we still get six percent. They have never increased the price in the 15 years that I can remember.

    The phone companies have increased the cost price of credit four times. So its gone from 10 percent, to its current 4 percent approximately.


    On the question of running at cost:

    The staff member has to be paid, the pink terminal from Alphyra cost 15 euro per month, then you have the dedicated bb line (not sure to hand), along with all the other overheads of a store, rent, rates, etc etc.

    Any business that does not increase its retails in line with increases in costs is asking for it.


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  • Closed Accounts Posts: 5,070 ✭✭✭ScouseMouse


    Cabaal. Please answer me this.

    If a pint of beer goes up from the brewer, the pint in the pub goes up.
    If a can of coke from coke goes up from coke, the can in the shop goes up.
    If a car tyre from pirelli goes up, quickfit will charge more to sell it.
    If the cost of coffee goes up, it goes up in your local shop.

    Why is phone credit different ?


  • Moderators, Technology & Internet Moderators, Regional South East Moderators Posts: 28,536 Mod ✭✭✭✭Cabaal


    As for the claim, it brings people in and they spend money on other things, in practice, that often is wrong.

    Oh I see what your doing, your now attempting to discount the whole idea yet you know there is basis for it

    Again care to answer me if you get money by having an ATM?
    The example of Lotto is incorrect because we took in the lotto at a margin of six percent. They have not increased the price. So we still get six percent. They have never increased the price in the 15 years that I can remember.

    That's a very interesting example, so during the Celtic Tiger years when running costs were at they're highest and wages were high etc the Lotto never increased the revenue to shops?

    Tell me why didn't shops then add on an surcharge for quick picks and lotto tickets in order to cover increased running costs (and god knows they likely had them)?

    Oh wait.....because they couldn't because people would have been bitching on the likes of Joe Duffy about greedy shops charging 20c extra on a quick pick.

    Phone credit however they increase because they knew they'd likely get away with it.

    The phone companies have increased the cost price of credit four times. So its gone from 10 percent, to its current 4 percent approximately.

    Interesting, can you perhaps give me a breakdown of when it dropped by each percentage over the years

    Given MANY shops having been charging between 20c (20p) and even upto 1e extra for phone credit as far back as I can remember (certainly at least 1999), can you tell me what percentage it was then?

    Again you know greed showed its head long long before the percentage dropped to 4%
    Cabaal. Please answer me this.

    If a pint of beer goes up from the brewer, the pint in the pub goes up.

    Yes, however a pub by law must display the price in addition the pub risks loosing business to other pubs very easily if they do this in a very greedy way.

    I've only seen a hand full of shops display a notice about a "service charge", this is underhanded and likely against the law. Can you tell me do you have a notice up?

    We've seen with phone credit the OP had to pay 50c yet other shops charge 20c, this is in-consisted pricing across the board and it shows "chancing the arm" pricing.

    If a can of coke from coke goes up from coke, the can in the shop goes up.

    Interesting example, years ago in the shop we sold cans for 50p...now we had all the standard soft drink cans priced at 50p yet some shops even in the same area were charging 55p or even 60p.

    Now we had running costs the same as the rest of them, yet we didn't get greedy and up prices on soft drink cans as much as these shops.

    I've seen shops increase prices from both sides of the counter and you and me know shops will often increase prices just because they can milk more money and get away with it.


  • Closed Accounts Posts: 16,793 ✭✭✭✭Hagar


    Cabaal. Please answer me this.

    If a pint of beer goes up from the brewer, the pint in the pub goes up.
    If a can of coke from coke goes up from coke, the can in the shop goes up.
    If a car tyre from pirelli goes up, quickfit will charge more to sell it.
    If the cost of coffee goes up, it goes up in your local shop.

    Why is phone credit different ?
    You logic is perfect but there is a perception held by the public, rightly or wrongly, that €10 credit should cost €10.

    If a pint of beer had "€3 pint of beer" printed on the glass the punter would react if asked for €3.25.

    Perhaps the credit pricing should be like petrol pricing, you buy a tenners worth but get a little less as the price rises. That would work just as well for phones. The retailers margin remains intact and the customer knows you get less for a tenner today compared to 12 months ago.


  • Closed Accounts Posts: 5,070 ✭✭✭ScouseMouse


    Tried to multi quote this but gave up

    A lot, but not all customers buy nothing else.

    Dont have an atm as there are three within a five minute walk and I think they cost 80 quid a week and another phone line.


    Dont know why you are talking about revenue from Lotto when we are talking about commission. They shops always got 6%, it has never changed - unlike credit. And for your information, lotto revenues have dropped substantially. Why do you think all these extra draws have been brought in.

    On your point about costs. Main cost like rent, rates, and wages have not dropped, dont know where you got that idea from.

    Your question about the notice telling people about the charge. I have one on the till and another one on the credit machine.

    I am on my day off today so I dont have access to the cost prices, but I wouldnt put them on here anyway.

    But everything I have said is true.

    Perhaps you could answer my other post about why credit is different to tyres, coffee, coke etc etc

    Your point about increased running cost resulting in surcharges shows you dont understand this thread, its about the surcharge brought about by the increase in phone credit and phone credit only.


  • Closed Accounts Posts: 16,801 ✭✭✭✭Gary ITR


    Cabaal wrote: »
    If a shop becomes part of a franchise this is the choice of the shop, the consumer didn't force the shop to do this.

    Plenty of shops up and down the country don't have franchise's

    Becoming part of a franchise is a good thing for the consumer. Independents are more expensive. Plenty of shops up and down the country don't have a franchise this is true but they are becoming fewer and fewer.

    Cabaal wrote: »
    You make it sound like the only thing a shop sells is phone credit, as per my last post things like phone credit often exist simply to draw customers in who will then likely purchase some other item.

    The same example can be applied to Lotto machines or a shop that has an ATM in their premises.....what percentage of profit do they get off an ATM?

    So phone credit is added to the list along with cigarettes, lotto, newspapers... where does it stop? What if cadbury's go in next week and say 'we're upping our prices and cutting your margin to 6%'

    Any retailer I know that has an ATM says they are more trouble than they are worth and cost them money. I'd prefer not to go into the ins and outs of an ATM though for obvious reasons
    Cabaal wrote: »
    The local shop by adding on this extra charge are ensuring that people WON'T get credit from them and if they are not getting credit then they are not going to pick up that something extra when they are in the premises.

    As such the shop is loosing any chance of making profit off other items that the customer may buy.

    THat's a fair point but you will find that people buying phone credit will do exactly that and buy nothing else. Money is tighter and consumers aren't impulse buying anymore
    Cabaal wrote: »
    Some shops will just chance their arm I've seen it time and time again over the years and this is coming from experience in the grocery/off-license/pub trade.

    If they think they can charge extra and get away with it then they will,

    Most of the retailers charging this surcharge are doing it because they have to not because they want to. Believe it or not retailers want to give the best possible value to their customers to bring them back. Now you might have this image of retailers retiring to Paradise or driving a Bentley on the money made from this surcharge, it's simply not true. Most retailers are busting their balls at the minute to make ends meet. In fact I would bet money that Superscouse doesn't get a day off every week like he's enjoying today




    Edit: I hate this rip off too. But blaming the retailer is akin to shooting the messenger. Blame the Networks


  • Closed Accounts Posts: 16,801 ✭✭✭✭Gary ITR


    Cabaal wrote: »

    Interesting, can you perhaps give me a breakdown of when it dropped by each percentage over the years

    Given MANY shops having been charging between 20c (20p) and even upto 1e extra for phone credit as far back as I can remember (certainly at least 1999), can you tell me what percentage it was then?

    Again you know greed showed its head long long before the percentage dropped to 4%

    I can't give an actual breakdown of the when and where's but I do remember this happening. IIRC 02 were the first to do it then the others followed suit and you're right it was a number of years ago, not 1999 though closer to 2002. At the time there was a huge standoff between retailers and the networks. If you remember the surcharge started at 10cent and steadily increased over the years as the margin dropped.

    Cabaal wrote: »

    We've seen with phone credit the OP had to pay 50c yet other shops charge 20c, this is in-consisted pricing across the board and it shows "chancing the arm" pricing.

    It doesn't show ''chancing the arm'' pricing. It shows some retailers are willing/can afford to take the hit themselves. To bring margins into line where they once were retailers would need to charge 60cent for every €10


    Cabaal wrote: »
    Interesting example, years ago in the shop we sold cans for 50p...now we had all the standard soft drink cans priced at 50p yet some shops even in the same area were charging 55p or even 60p.

    Now we had running costs the same as the rest of them, yet we didn't get greedy and up prices on soft drink cans as much as these shops.

    I've seen shops increase prices from both sides of the counter and you and me know shops will often increase prices just because they can milk more money and get away with it.

    Yes and the one charging 60p was probably cheaper on a bar of chocolate or or packet of crisps. Retail prices aren't just plucked out of the sky. Believe it or not shop pricing is an exact science these days. A shop must have an overall percentage margin, that's what pricing is decided on.

    You will find that shops not making the margin on phone credit are just making it up elsewhere. They have to to stay afloat


  • Registered Users, Registered Users 2 Posts: 3,077 ✭✭✭Shelflife


    The simple facts of the situation is that the networks would prefer the shopkeeper out of the loop now.

    They have latched onto the notion of the topups costing €10, €20 etc when in fact they could sell them on a unit basis, but they want to keep the selling price the same.

    The networks have consistently decreased the margin given to retailers from the heady days of the "scratch card top up" when we got 10% to now where we get just over 3%. When asked if the prices had gone up the networks have denied that they have giving the illusion that the retailer is being greedy when in fact all they are doing is passing on the price increase that the networks have imposed.


    put simply the networks have increased the cost price, the retailers have in various forms either absorbed those prices or added them on, i fail to see where the rip off is.

    As an aside when you topup via an atm, is there not a bank charge for the transaction?


  • Posts: 0 [Deleted User]


    Some small shops forget we are in recession with all these ridiculous ripoffs.

    Boycott shops that rip people off like this.


  • Registered Users, Registered Users 2 Posts: 3,077 ✭✭✭Shelflife


    rarnes1 wrote: »
    Some small shops forget we are in recession with all these ridiculous ripoffs.

    Boycott shops that rip people off like this.

    could you explain how passing on an increase in the cost of a product is a rip off please?


  • Closed Accounts Posts: 16,801 ✭✭✭✭Gary ITR


    rarnes1 wrote: »
    Some small shops forget we are in recession with all these ridiculous ripoffs.

    Boycott shops that rip people off like this.

    Shops do realise we are in a recession, why do you think when you walk into a Centra or SuperValu there are promotions all over the place


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