Chota Recharge Bada Headache

Category: General | No Comments | Posted on October 19, 2005

Hutch recently introduced recharge coupons (Chota Recharge-Puri Baat) having full talk-time and no access fee. The top-up coupons range from Rs 10-198 and offer full talk-time if the customer opts to recharge the pre-paid account within the validity period. One can recharge any number of times within the vailidity period without paying an extra access fee. This coupon ensures the user pays access charges only once a month.

However, ET reports that the Chota recharge is proving to be a headache for the dealers. The reason being the low margin on the product. Margins are usually about 3% of product cost. In this case, it works out to 25-30 paise for a recharge coupon of Rs 10.

“I have to spend so much time explaining the product to the customers. For 25 paise, it’s just not worth my while,

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