Digicel attacks problem of overcharging - 2,000 sales points to sport 'Right Price' tags
Published:Friday | August 2, 2013 | 12:00 AM
An entire network of traders of mobile credit, formal and informal, has sprung up around the formal telecoms sector, fuelled by Jamaicans' propensity for talk.
A segment of the expanding base of suppliers of prepaid credit, however, set their own terms for the phone cards they sell, which often means customers pay a higher price than the face value and associated tax charges, depending on the margins that individual traders deem appropriate.
The practice has been ongoing for years, but now Jamaica's largest mobile phone provider, Digicel Jamaica, is fighting back - indirectly.
Last week, the company, which has more than two million local subscribers, announced that it will visually identify dealers who sell its credit at the suggested retail price, with a special logo.
Digicel's 'Pay The Right Price' campaign aims to put a halt to customers being overcharged when they purchase top-up vouchers.
Recharge Manager Annalise Harewood told the Financial Gleaner that the company has always been concerned about the issue of overcharging.
"There have been greater instances of overcharging in recent times, arising partially from the introduction of the GCT on the Special Telephone Call Tax on prepaid cards."
For J$108 of credit, pay no more than J$135, tax included, Digicel advises in a press release, for J$200 of credit, the cost is J$250, and for J$1,000 of credit, that should cost no more than J$1,250.
"Retailers already receive a wholesale discount when purchasing credit for resale. However, some sellers try to earn more from each sale by charging a higher price to customers. Through this Right Price campaign, Digicel is saying that the consumer should not have to pay inflated costs," said Harewood.
The problem appears to manifest more deeply in the secondary or resellers market.
One such card vendor who spoke with the Financial Gleaner said Digicel's suggested prices do not benefit him.
"If you buy a phone a card for J$135 and sell it for J$135 then there is no profit to be made. If you sell it for J$140 a small profit will be made," he said.
The seller said vendors like him are offering a service that is more convenient to consumers of phone credit, who will pay the premium to avoid joining long lines at Digicel stores or dealerships or at ATMs for top-up.
Digicel Jamaica has a network of over 2,000 sales points that already sell credit at the suggested retail price.
The company plans to erect 'Right Price' logos - which will take the form of a green tick - at those outlets, and is encouraging customers to look out for outlets sporting the symbol/logo.
They include Digicel dealer stores, Supreme Ventures locations, BNS and NCB ATMs, Paymaster outlets, GraceKennedy Money Services stores, Burger King and Mother's fast-food outlets, and Courts furniture stores.
Customers can also top up on credit online via Digicel's website.
Digicel is rolling out its Right Price campaign via posters and press and radio advertisements.