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MTN has not increased scratch card prices

19/01/2015
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Mobile Telecommunication Network (MTN) Ghana has cautioned retailers and vendors to desist from adding different margins to its scratch cards and passing them on to consumers.

According to the telecommunications giant, its scratch cards are supposed to be sold at the face values specified on the cards, which come in GH¢2, GH¢5, GH¢10 and GH¢20 denominations, in all parts of the country.

The company has, therefore, advised customers to report any salesperson who might not comply with the directive to any MTN office nationwide or call its customer service unit on 111 for immediate response.

The Senior Manager in charge of Sales and Distribution at MTN Ghana, Mr Abubakar Muhammed, gave the caution in an interview with the Daily Graphic in Accra.

The directive comes in the wake of various concerns raised by MTN subscribers that some retailers have added arbitrary margins to the face values of the cards.

For instance, while some retailers sell the card at GH¢2.10 instead of GH¢2; GH¢5.20 instead of GH¢5 or GH¢10.20 instead of GH¢10, others sell them at GH¢2.20, GH¢5.40, GH¢10 and GH¢20.
Distributors and sub-distributors

Mr Muhammed said MTN had contractual agreement with some designated distributors and sub-distributors or dealers to sell its scratch cards, adding that all vendors should deal directly with such distributors and avoid middlemen. 

In view of that, he explained that at the end of every year, the company held negotiations with wholesalers to revise the prices for the various cards.

“When we met these distributors at the end of 2014, we both agreed to add a little percentage to the prices of the cards and absorb almost every cost. We also agreed  to not pass on costs to our final consumers,” he explained.

He added: “So the price of none of our scratch cards has been increased by any margin on the market as against what some vendors are doing. Retailers ought to know that if they do not deal directly with our authorised dealers, they will always buy from middlemen and will not get them at the right prices,” he stressed.

He advised retailers who wanted more margins to engage more in the electronic transfer of air time (EVD credit). 
Ready to address grievances

For those who may buy any scratch card from any vender at different costs other than the approved sale values, he provided designated numbers for them to call, adding that some MTN officers had been dispatched to specific areas where the complaints had been rife.
Response from vendors

Checks by the Daily Graphic on some merchants and MTN scratch card dealers in Accra indicated that while some of them were  complying with the order, others had blatantly refused to adhere.

“I am not happy with the instruction by MTN because it affects my business negatively and that of my colleagues,” a vendor at Ridge in Accra said.

“I’ve stopped purchasing their stock since the whole issue started because it is affecting my business. How can I buy cards at higher rates and you don’t want me to increase it in order to make my profit?” Ola Abdul Karim asked.

 

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