Getting as many people as possible now to come to your shop and buying something, is the key to modern retail. You can often sell them more, if you can get them to buy something.
Telco costs our clients nothing, they get an account and often can be trading in hours. The costs of selling is zero. As such many of my clients have been pushing Telco's products now almost always Touch mainly because I think better margins, better service and larger product line. Over the past two years, the growth has been steady.
I decided to look into Telco's products. The big month for Telco's sales is December. I presume holidayers are the main reason. They also (see 6) tend to spend more in those months. Overall though if you look at the trend line in blue there is little change over the years before the price people pay. Which is surprising as the products' prices have dropped, you get more Internet now then you did two years ago for the same money?
What I did notice though is that over two year,years,margins have fallen as you can see with the blue line is the trend. The days are long past,when we started pushing Telcoto our clients, they were enjoying margins of 30%.
The number of sales per shop has also dropped partly I think this is due to more retailers selling the product and the move by the public to plans and buying on the net.
This has over two years resulted in a fall in profit per shop.
Overall though it is clear, the main reason for the expansion of Telco into our client base is that it brings about 100 customers a month into their shop, costs them nothing to install and brings about $100/month profit.
