Posted by ghostfreak
Vodaphone has axed its deal with with CPW - and teamed up with Phones4U.
The news sent CPW shares down to 50.25p to 310 - knocking £446 million from the firm's stock market value.
Taken from the 'Sun City' column of The Sun newspaper.
Posted by jcwhite_uk
That cant do much good for voda. Phones4u are a bunch of cowboys in my opinion
Posted by ghostfreak
It also states that:
It said the deal would scupper P4U's independence. A spokesman said: "It's not Phones4U, it's Vodaphone4U. We sell phones on the basis of what's best for our customers, not on the basis of guaranteeing volumes of sales for networks'.
Last night, a spokesmans for Orange said it was reviewing how it sells through third parties.
Posted by jcwhite_uk
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ha ha. thats a joke. They have never offered me a phone that was right for me. They only offer what is right for them to make more money.
Posted by Residentevil
That sounds like a bad deal for Voda.
Posted by frakker
Less than 10% of all contracts sold through CPW where with Vodafone, so CPW are hardly missing out and I guess that means others like Virgin Mobile can take over their place.
CPW are the biggest mobile retailer in the UK, but from the article Phones4U offered Vodafone a lower cost commision deal than CPW. Most networks are trying to move away from the expensive commission system to something more sane, so on that basis, this move does make perfect business sense.
Posted by jj03
In my opinion, it is a good move by vodafone...now we have one cowboy joining another. Curtains for u were never impartial anyway, and add to that the shit that is vodafone's awful branding, and you have a match made in heaven...
Posted by fatreg
wont be long before all phones are sold thru retail..
as in networks own stores..
best deals, best cs, one point of contact..
why would you go else where?
fatreg
Posted by Red_Rach
So thats why my contact was passed through to Vodafone rather than CPW dealing with it.
Posted by jmbillings
Hmm, I used to be with Voda but took out a new CPW contract back in April or so (still on Voda but via CPW).
About 3 months ago, CPW wrote to me saying that billing and so on was being moved to Voda directly, and now my bills come from them... what effect will this have - will I go back to CPW?
Posted by axxxr
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.
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_________________
BELIEVE|TERRORSTORM
[ This Message was edited by: axxxr on 2006-10-13 23:40 ]
Posted by Superluminova
"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
Posted by frakker
Oh look, this Andrew Harrison's nose is beginning to grow and grow...
Posted by axxxr
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.