There is this strong rumor in the market that Mobilink is considering the option to roll back its Scratch cards of Denomination Rs.100 and Rs.300. The Reason for this rollback is the extensive pressure from the Mobilink Franchises across Pakistan upon the administration to take this service back. Franchises are exerting pressure due to the low percentage in the Scratch Cards.
Our readers may know that Scratch Cards of Rs.100 is supplied to the retailers by the Franchises on the percentage of 2.75%, while Rs .300 is on slight higher Percentage of 3.0 % – at the same time; percentage on Easy Load is 3.0 %.
By the way, Telenor gives higher percentage than the most of the Telecom’s as there Franchises gives 3.50 % to wholesalers on the Scratch Cards, 3.0 % to the Retailers and 4.0 % on the Easy Load.
Franchisers are of the view that they have a very little margin in the sales of the Scratch Cards. Furthermore, Rs 100 Scratch cards are mostly used, and most of the times pressure is exerted by the Company to meet the targets of the Scratch cards, so they have to float the Scratch cards to the wholesalers on almost the same margin they are getting from the Company.
Franchises Across many cities staged protests too, few Months back for the unrealistic targets given to them by Mobilink. Many Franchises limit their orders of the scratch cards due the lesser percentage ratio of about 0 .73 % on the Cards.
For Franchises Easy load is more beneficial due to its higher percentage of around 1.0 %. They prefer the option of easy load sales.
In this regard, Company is overlooking the fact to roll back the cards of Smaller Denomination of Rs 100 and 300 and replace it with Easy load option. The higher Denomination cards of Rs.625 and 1000 will be retained if this plan is implemented.
This strategy will definitely benefit the Franchise in the regard that their profit ratio will be increased. But it can affect the customer base that usually don’t prefer the Easy Load.
On the other hand it may be the new trend in the market to build strong business relations with the Franchises. After all Franchises are remain the main pushing force behind the sales of the Company.
Also to add here, we are still waiting for Mobilink’s view point over the issue.