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Topic # 102023 14-May-2012 18:52 Send private message

This probably seems like a silly question, but some thing I have wondered. How do the 2degrees stores make money. I mean I know they sell phones and other services. But what if they don't sell any phones/services in a week. Because there has to be wages paid, power paid and rent if the store is rented. 

It only made me wonder yesterday when I walked past a new 2degrees store and it was empty, and two staff standing behind the counter.  But two doors up, there was a queue of people in the Telecom shop waiting to be served. Should be the other way round, people obviously have no sense. 

Anyway, just curious, as the last thing I want to see is a store like 2degrees shut up shop due to lack of custom. 

Told you it was a dumb question




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  Reply # 625054 14-May-2012 19:09 Send private message

I would assume they get a % for each customer / sale and aslong as they make a total monthly profit they keep on trading?

gzt

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  Reply # 625057 14-May-2012 19:15 Send private message

Retail rhythms can be very strange. 2degrees customer demographic is different enough to Telecom that they could be busy at different times of day. Also takes the public time to click with a new option in the neighbourhood.

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  Reply # 625079 14-May-2012 20:11

Usually there is a few people in their stores. Dont forget telecom has more than mobile, also most of their products and services can be managed online.

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  Reply # 625080 14-May-2012 20:12 Send private message

**totally guessing here**

It wouldnt neccesarily be a bad thing if the store ran at a loss (to a certain degree), as they are a 'face' for the company, giving people help when things go wrong, and 'legitimising' what is a relatively new brand for an older clientele. Having a physical presence makes a brand a lot more legitimate for that generation which is scared to anything online, and i suspect that's a demographic that 2d are yet to make a dent in.

From experience, the 2d shops are way more efficient than their resellers, signing a new contract with them took all of 5 minutes in a 2d store, rolling over a contract at a dick smith took 30 mins.

Telecom stores are moving further towards a 'tech' store rather than just a help desk for their telco products, so I think there is more idle attraction to have a browse in a telecom store than a small 2d store

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  Reply # 625082 14-May-2012 20:14 Send private message

SteveON: ...most of their products and services can be managed online.


Good point - perhaps queues at physical stores can be used as a proxy to measure the effectiveness of their online presence haha

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  Reply # 625159 14-May-2012 22:45 Send private message

semigeek: Should be the other way round, people obviously have no sense. 

Not necessarily, I'm with telecom because i get through to the helpdesk pretty quickly, whereas a mate waits 40mins on hold to find out why hes been charged twice for his prepaid addon pack for the last two months. I have 3G coverage everywhere i go and never any issues with having to roam between one network or another, broadband zones etc. Data speed seems to be higher and latency lower - in hamilton anyway.

Overall, i just feel like Telecom offers a higher quality of service. Just my 2c though.

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  Reply # 625167 14-May-2012 22:57 Send private message

semigeek: It only made me wonder yesterday when I walked past a new 2degrees store and it was empty, and two staff standing behind the counter.  But two doors up, there was a queue of people in the Telecom shop waiting to be served. Should be the other way round, people obviously have no sense.


Would said store happen to be Westgate where 2degrees/Vodafone/TelecomNZ are side-by-side?  It's often like that at Westgate, Vodafone or Telecom have one or two in one of them, and a swarm in the other while there is next to nobody in 2degrees, could just be that I go past at the the wrong times to see people in 2degrees though.

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Spark NZ

  Reply # 625168 14-May-2012 22:59 Send private message

I doubt the stores have to "make money". 2D needs revenue from its sales of plans. There are many costs, network costs, admin costs, CSR costs, store costs, advertising. They need the stores to have a presence, so that is just one of their operating costs IMO

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  Reply # 625229 15-May-2012 08:02 Send private message

I thought some 2D stores were individually owned?

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  Reply # 625276 15-May-2012 09:27 Send private message

When I popped into the Riccarton Mall store last week it was standing room only in there!

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  Reply # 625281 15-May-2012 09:31 Send private message

The 2Degrees store that just opened in Dunedin is a few stores down from Telecom.
Heaps of people waiting at Telecom and 1/2 people tops at 2D every time I walk past (generally between 1-2pm)

The queue at Telecom reminds me of the massive queues at telco stores in Singapore.

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2degrees

  Reply # 625377 15-May-2012 11:25 Send private message

Thanks for the feedback guys.

We're very happy with the ways our stores have been performing since the first one opened in October 2010. We now have 34 stores countrywide that are operated by 2degrees and our retail partners. Our customer base is also growing and we?re proud to be the fastest growing network in NZ.

http://www.2degreesmobile.co.nz/2degrees-stores.

Cheers
^POB

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  Reply # 625417 15-May-2012 12:25 Send private message

I think that if you are in the mobile phone business you have to take a long view. 

I was talking to someone from Voda recently and they were telling me "Oh, we aren't worried about 2D. We are focusing on revenue per customer". I didn't have the heart to tell them that I remember the celebrations when Voda got to milestones in customer numbers. 

Now 2D is fixed on numbers of customers, shops are a part of that. Don't know if they are franchised or all owned by 2D. 




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2degrees

  Reply # 625418 15-May-2012 12:38 Send private message

crackrdbycracku: Don't know if they are franchised or all owned by 2D. 


Some are 2° owned, some are franchised.

^POB 

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  Reply # 626338 16-May-2012 17:47 Send private message

From a service point of view, lack of queues could just mean that people are being served that much faster... just saying :P

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