2/18/2009 12:50:00 PM
Hugh Symons increases its focus on dealers by raising commissions
Hugh Symons Communications (HSC) has trebled its Orange commissions in less than three months, in a bid to win business dealers.
The move comes as the distributor market grows increasingly cut-throat.
HSC has increased the box bonus (commission per handset) to £90, compared with £25 in December. In January, the bonus doubled from £25 per handset to £50.
The distributor said it is paying a significantly higher amount than its peers in an attempt to win dealers and increase its market share.
HSC managing director Bob Sweetlove said: ‘We’ve got a rich pack and we’re keen to maximise our high quality dealer base in an increasingly tough market.’
The sharp increase in commissions in February initially prompted rumours among dealers that the pricing was a misprint.
The distributor is taking a hit on up-front commissions to drive up numbers and reach the volume bonus. One dealer said: ‘They’ve come out aggressively on this; they are using their own money to drive up the number of dealers.’
One distributor said: ‘It makes business sense that they won’t get the profit, but they’ll get more dealers.’
In July 2008, HSC tried to entice dealers with a free laptop offer. New and returning dealers were given an Acer 5315 laptop if they signed up 10 pay-monthly customers in a 30-day period.
The incentive was geared towards educating dealers on mobile broadband products, as well as attempting to lure dealers to HSC.
Orange declined to comment.