MTN vendors defy its orders

Vendors of MTN scratch cards have threatened to continue to charge rates higher than what is inscribed on the scratch cards till the mobile giant reduces the wholesale price of the cards.

The vendors begun charging the new rates early this week to make up for margins lost because of the hikes.

Though MTN has denied the increment some vendors who spoke to Citi Business News say they will not badge till the mobile giant reduces the prices.

Citi Business news checks shows a lot of retailers of MTN top-up cards have increased their prices above what is indicated on the cards.

They have gone up by between 5%-10%.

Top up cards that used to cost 2 cedis are now being sold at 2 cedis 10.

For the 5 cedi cards, some charge as high as 5 cedis 50 pesewas and 11 cedis for the 10 cedi top-up cards.

A number of these retailers who spoke to Citi Business news say it is because the prices sold by the sub dealers and wholesalers had also increased by a little under 1%.

One told Citi Business news, “The GHS 2 card, we now sell it at GHS2.10; for the GHS5 we sell at GHS5.20 for now. As for the GHS10, it’s GHS10.40.

Annor Sekyi Adjei is an MTN Sub dealer at Mallam Junction in Accra.

He tells Citi Business News MTN’s authorised wholesaler, iZONE effected the increase in prices at the beginning of the year.

Annor Sekyi Adjei also adds that they have had to adjust their prices significantly because they have been told they will no longer receive a monthly commission like before.

“According to them, they did not want the vendors to sell to their users above what’s is on the card. So they asked us (subdealers) to sell it as the price we buy it so that at the end of the month they will give us back margin,” he said.

According to him, “But of late they are saying there is no back margin. We don’t know why they have changed their minds. So if you look at the fact that we are going to sell it without any back margin, then it will be a cost to us.”

“We have hence made a little increment so that we can pay our workers and staff”, he added.

However an iZone dealer who spoke to Citi Business News dismissed the allegation of the commission.

Meanwhile MTN has asked its customers to insist on paying prices inscribed on the scratch cards.

 

By: Anim Kwaku Boadu/citifmonline.com/Ghana