10/23/2008 11:48:00 AM
Distributors say Orange can’t control sub-dealing
Distributors have accused Orange of turning a blind eye to sub-dealing by its band of elite dealers – so-called federated dealers – and are sceptical that the upcoming revenue share model will address the problem.
In a poll of the major Orange distributors, the majority said that several federated dealers were using commissions superior to those offered to distributors in order to poach dealers.
There are around 100 dealers signed to the Orange programme, which offers better commissions, preferential stock and other benefits. The idea is to reward those who bring higher spending and more loyal customers.
In a bid to outlaw bad practices, dealers and distributors are to receive an expected 20% of their commissions some time into the customer’s contract in the proposed revenue share scheme, set to begin in January.
One dealer said: ‘It’ll still happen just under the different model.’
Sub-dealing has been rife for some time among every network confederate. High connection targets mean that some federated dealers sub-deal to other dealers and use their commissions, which are richer than those given to distributors.
Distributors have not been vocal in raising the issue for fear of upsetting Orange and losing their relationship with the operator.