GREY:GLNIF - Post by User
Comment by
Waterboy4on Sep 10, 2012 9:47am
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Post# 20341759
RE: RE: RE: RE: RE: So wheres the bottom
RE: RE: RE: RE: RE: So wheres the bottom So here's a little more to the story. I have confirmed that Telus has made significant changes to the delaer compensation model in Western Canada which has negatively affected a number of multi location dealers. What I cannot confirm are all of the details of the changes, but the net effect are significant staff reductions in Telus only locations. The only bright spark here is that GT does no business with Telus as far as I know, but the changes are normally adopted by competing carriers in Canada shortly after introduction and this is what concerns me. Introductions of new phone models will have a short term increase in revenues, but a change to the recurring compensation paid by carriers could be problematic. A significant portion of revenue is generated from carrier, commissions, loading commisions and residuals from airtime. Think about this logically. Even a 10% reduction in carrier compensation will be reflected immediately in the bottom line of the Canadian Retail numbers since costs would remain unchanged and it is unlikely to make up for any loss by increasing the qty's by a number significant enough to offset the changes.
I am not convinced of the safe bet here Robert...