It is alleged Orange uses its credit-checking process to reject dealer-initiated connections only to contact the customer directly and connect the phones later on.
Matlock Mobiles proprietor Alastair Newton claims Orange is still actively poaching customers.
Newton told Mobile News that he will be sending Orange an invoice for unpaid commissions of around 450 after Orange rejected his sale of nine handsets to a corporate customer on the grounds that the customer didnt have three months proof of address.
Only a short time later Newton contacted the customer to see if he could resurrect the deal only to discover that Orange had connected all nine handsets directly.
Im furious said Newton. We did all the work but Orange has connected the customer direct.
I do not care how many denials they make in the trade press regarding poaching of customers. They are as active now as ever.
Even single phones are being knocked back by credit (cont P2) referrals to give them the opportunity to convert it in to a direct sale. I hope they drown in their debts after I move all my Orange customers to other networks.
I will be invoicing Orange for the lost commissions and some data cables that we ordered in for the customer that have no use elsewhere said Newton.
Oranges connection referral processes are far too slow. Orange demanded customer proofs. We faxed them over several times only to be told that Orange hadnt received them. It worries me when it takes Orange two hours and four faxes to connect a phone.
No wonder people are reporting fewer sales. How many phones can you connect at that rate?
Orange says it is investigating Newtons claims. Orange head of sales Stuart Henry responded by saying:
We take any allegation of Orange poaching customers from retailers very seriously and will investigate any allegation individually. Should any wrongdoing be found we will take appropriate action.
Should any dealer feel that they have been treated unfairly by Orange I urge them to contact Orange directly via their business manager or alternatively they can email our commercial support team Henry added.
In another development Northampton dealer Scancom has hit back at Orange national sales manager Adam Clarke who accused him of a lack of commitment in a letter which ended Scancoms dealer agreement.
Now Orange has agreed that Clarkes letter could have been worded more tactfully. Scancom boss Gary Pope was furious when Clarke terminated his direct dealer arrangement giving him three months notice and telling him to use an Orange distributor instead.
Clarkes letter stated:
It is evident the level of commitment you have demonstrated to Orange has fallen markedly recently. In light of this I have to advise you that we are no longer able to justify the cost of maintaining your direct account with us.
Therefore in accordance with Clause 7 schedule 1 of your dealer agreement with us I hereby give you three months notice of termination.
A furious Pope said his sales had dropped due to the lack of attention from Orange dealer managers and little stock.
He replied to Clarke saying:
Never accuse me of lowering my commitment to Orange. I have given Orange 99.9 per cent of our mobile phone connections since 1994.
While appreciating that we are not your biggest connector I have always strived to give you quality business customers. But this obviously counts for nothing.
You infer I am giving my business to other networks. I have customers waiting for Nokia 6210s 8310s and Ericsson T39s all of which you cannot supply because they are on allocation etc.
Since you got rid of [dealer manager] Paul Beard we havent even heard from a dealer manager let alone received a stock allocation.
Pope told Mobile News:
I was angered by the fact that it sent out a standard letter with no thanks for the business that we have given it in the past. We are not a big connector but who is? I accept it wants us to deal through a distributor.
New connections have dropped. Upgrade business is 10- times more than new connections. We are still moving the same amount of kit. But most of it is upgrade business.
I dont understand why Orange didnt set us some definitive targets. I cant accept the impolite manner in which it has dealt with this. I deal with my customers politely. Why dont they?
Oranges Stuart Henry said:
The letter to Mr Pope could have been worded more tactfully. It was sent in reaction to our inability to make contact with Mr Pope directly. A business manager has subsequently contacted Scancom and arranged to meet with Mr Pope.
Dealers who have a direct relationship with Orange are aware of clear criteria that include a minimum sales threshold. These criteria take into account the cost to service supply and manage the account.
We continually review the performance of all our direct dealers to confirm they are best served through a direct relationship with Orange.
