City Power vendor admin fee ?
Prepay Guru
Johannesburg asking the public a admin fee of R4 per R50 electricity
purchased ? This is payable at the vendign point ie. outlet at the
time of purchase.
Has any City Power clients had this experience before?
Thami City Power Johannesburg
We have been expiriencing such problems from the time we began with
3rd Party Vending. Were customers are charged so called admin fees by
the marchants. we have raised the issue with the Super Vendors all the
guys we have received complains about we have stopped them from
selling on behalf of City Power. We are dealing with the issue as and
when we receive complaints from customers. Marchants are not supposed
to charged as they are paid a commission by the Super Vendor.
If theere are ways were this was resolved we could do with the advise.
Llewellyn
will need to refund the purchasers who have been overcharged by the vendors
and reclaim the value thereof from the vendors.
Regards
Llewellyn Curlewis
BA LLB; CAIB(SA), BCOMM
Energy Audit Strategy cc
Telephone: 011 3273600
Cellular: 083 3312279
Facsimile: 0865128883
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Nicola
It was me that actually paid the R4 per R50 admin fee, but it was in
pure desperation because all the other City Power vendors where I had
tried to buy the electricity from were "offline". I honestly don't
believe that there are enough places to buy electricity for people who
have a prepaid City Power meter. I was told I could buy from PnP, but
that hasn't worked so instead I find myself driving to all the areas
near Hursthill to find places that a) sell electricity b) have stock
of electricity and c) don't charge ridiculous admin charges.
On Feb 4, 2:47 pm, Thami City Power Johannesburg
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> - Show quoted text -
Poobalan Naidoo
This seems to be happening not only in the Electricity vending space but also in the Airtime space. I recently was quite surprised to see a notice on a shop wall that said there will be a R1 surcharge for prepaid airtime vouchers.
The problem in the electricity space stems from the low commissions vendors are paid which then forces them to find alternative ways to gain extra income. There also exists the turnaround time that vendors have to wait to be paid. Further to this certain vendors have to pay a rental on the terminals that they use to sell the electricity.
Super/National Vendors are well suited to selling electricity through the chain stores where sales are done just to be able to provide a full basket of services to their shoppers, in which case the low commissions is not a major issue.
However recently Super Vendors are doing vending outside of the chain stores and the vendor's they use derive their income solely based on the sales of Electricity.
When you consider that on average a vendor receives between 1.25% and 2% commission, they could receive between R2500 and R4000 on Sales of R200 000. Based on existing purchasing history this equates to an average of about 10 000 Sales. Assume an 8 hour working day, 6 Days a week and a 4 Week Month which equates to 192 Hours of Sales. Now this then equates to 52 Sales an Hour with roughly translates into a full time job. Now also consider the fact that the vendor has to pay upfront for the credit before they can sell it which also translates into numerous trips to the banks to make deposits weekly if not daily and they take the risk for the cash.
I am in no way justifying the vendors actions but highlighting some of the reasons they resort to these kind of measure and hopefully once we understand the cause we can work towards a solution.