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This is the message that Carphone UK chief Andrew Harrison sent to all staff following Vodafone's announcement that it would no longer sell contracts through Carphone.
Quote:
It's not Phones 4 U, it's Vodafone for U.
You may have heard that Vodafone has put out an announcement to say that they're going to start restricting selling their subscription phones through one partner only and that they have chosen Phones 4 U.
Let me just be clear that this isn't how the course of events transpired.
The deal means that Phones 4 U has guaranteed to give Vodafone a large percentage of their subscription sales every month, as I was told by Vodafone, "NO MATTER HOW COMPETITIVE THE OFFER IS." Vodafone approached us to do the same deal and we would and could not go anywhere near it with the terms on offer. It goes against everything we stand for.
Quite frankly, it's a sad sad day for 4 U customers. We have together built CPW on the fundamental principle of IMPARTIAL advice. This cannot and will not EVER be compromised: it is the foundation on which our customers trust us.We will always sell phones on the basis of what is the right and best for our customers, not on the basis of guaranteeing volumes of sales for networks.
Rest assured, their announcement today will have no impact on our sales figures. Less than 10% of our subscription customers today choose Vodafone and this figure will easily be made up with better offers.
Today is the day that 4 U gave up any small amount of principles they ever had. It is the day that we stand PROUD on ours.
We will continue to sell all Vodafone product until further notice.I
understand this is an inconvenience to you all, but it is important we stick to our values.
Regards,
Andrew [Harrison]
_________________
BELIEVE|
TERRORSTORM
[ This Message was edited by: axxxr on 2006-10-13 23:40 ]
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Posted: 2006-10-14 00:38:39
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Superluminova Posts: > 500
"We have together built CPW on the fundamental principle of IMPARTIAL advice."
Since when has any salesman been IMPARTIAL? They sell what makes them most money, pure and simple!
and also pushing talk talk is hardly impartial either lol
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Posted: 2006-10-14 00:49:58
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Oh look, this Andrew Harrison's nose is beginning to grow and grow...
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Posted: 2006-10-14 12:13:12
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CPW Crisis: at a glance guide
What's happened?
Vodafone has ceased selling contracts through Carphone Warehouse in favour of an exclusive partnership with Phones 4u.
Why Phones 4u?
Vodafone see Phones 4u as complementary. It's pulling power is in the 16-34 market, while Vodafone Retail's 350 stores attract those who are 30 years and older. Carphone Warehouse on the other hand has a broader range of stores and customers creating more scope for overlap in the operator's eyes.
How was the deal done?
Vodafone has been talking to Carphone and Phones 4u for months to select one strategic partner with which to focus its activities. It aims to build carefully targeted propositions that hook key customers and build high returns.
Why just one partner?
Vodafone says the market has changed from acquisition to maturity. It claims it has seen a rapid decline in third party connections in the last two years, and they now account for just one third of new connections. That being the case, it decided to work with just one retailer who would invest more time in tailoring propositions.
What are the downsides?
Vodafone's other key criterion was that there was a guaranteed level of business. Mobile understands the targets is a minimum of 30,000 connections a month , with additional targets for quality of customers. Vodafone is currently taking almost 30% of the contract market, which stands at around 110,000 connections a month, so that figure is achievable. But it would be more than Phones 4u achieved for Vodafone during the heyday when it owned Singlepoint.
What about distributors and dealers?
Vodafone does very few consumer contract sconnections through distributors and dealers. These arrangements will be left untouched. South west retailer JAG Communications for example will continue to sell Vodafone, as will a number of distributors. Hugh Symons, Carphone's distribution arm, does relatively little business on Vodafone consumer contracts.
What will be the impact?
Carphone boasts 5 million connections a year. In the short term, other operators will rush to fill the gap left by Vodafone. But they may decide to apply more pressure in negotiations after the dust settles. The key question is whether Vodafone has broken the mould. Will more operators pick favourite or exclusive retailers in future? Orange has said it will review its retail arrangements in 2007.
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Posted: 2006-10-15 23:37:55
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