Our CEO Responds To Traders Questions

QVMAC Representative, Stephen McLennan, submitted a number of questions to our CEO on behalf of traders. The questions relate to plans for an underground car park and the resulting impact on traders. Following are just some of the questions raised. Jan Cochrane-Harry’s responses are in italics.

1.     How many stalls have to be trimmed to accommodate the proposed car park?

The proposed carpark is to go under Sheds A, B and C and the Sheds will be returned with the floor space the same size as that currently.  Therefore no stalls have to be ‘trimmed’ for the purpose of accommodating the carpark.

2.     Which areas of the Market does Management believe need to be trimmed?

I’d like to place the matter of ‘trimming’, as you put it, in its proper context.

The consistent feedback is that there is too much repetition and that management and trader reps need to work together to address this – whether there is an underground car park or not.  It’s not “management’s view”, it is a reflection of what the customers (and also many fellow traders) are saying. As you know some traders have multiple stalls selling exactly the same product, and some traders buy the same stock from the same wholesalers.  

It is our responsibility as management to help keep a focus on what customers want, and what they are rejecting - in order to keep the market relevant and vibrant.  In that context management is simply trying to ‘guide’ traders and refocus them on their customer.  It’s very easyfor traders to blame management. 

We need to identifyand specify (preferably in consultation with the QVMAC trader representatives) which categories those are.  It will also depend on the proposed final use of various areas under the sheds, and how shelter and roofing may affect the amount of usable floor space.  There may also be other types of product or services which are currently missing that will be considered as appropriate to have in a future market.  All these things are yet to be considered in depth and will be incorporated in the Draft Master Plan.  We would be interested in the views of your Trader representatives.  However, we are prepared to come back to a future Trader rep meeting with some preliminary proposals.  I cannot commit to timing at this point.

As far as ‘trimming’ though, having facilities below ground should hopefully free up space at ground level which in effect creates more space for retail and people to circulate.

We certainly believe that customer information about location of product and traders needs to be improved in the immediate term and we are in the process of creating a customer information centre to help with this.

3.     Would Management consider asking for voluntary retirements?

We will be asking everyone what their intentions are for the future.

‘Voluntary retirements’ are an employer/employee relationship concept, and not really relevant in an open market small-business environment.  If traders who are considering retiring in the next few years were to let us know, that would be helpful to other traders and the overall planning process.  Traders have a license and QVM will work with them within the parameters of those documents, giving as much advice of probable future intentions as possible once those directions start to firm.

4.     How does Management propose to fit the remaining stalls into 3 less aisles?

We are considering potential use of Marquees and maybe some space in Mr Munro’s building onTherry Street.  All possibilities will be explored in the next few months.  We also need to consider what the effect is of all the cars that are parked under the sheds  – and whether there is potential to set up an arrangement with nearby car parks and a possible shuttle system.  Nothing is decided yet – all creative suggestions will be considered.  We’d be interested in knowing what the Traders reps could suggest.

5.     Will stalls become smaller to fit everyone in?

Not sure yet what the intentions of all traders are or how much space saving might be possible with regard to boxes and cars.  Ideally, we would like traders to be able to keep their sizes (but not necessarily in multiple locations). 

Potential options and scenarios in relation to the sizes and mix will start to emerge once we have spoken to every single trader.  Further discussions on the aspect of the Temporary Market will be ongoing, with a plan expected to emerge in about October.

Have Your Say – click here.

Market Battles With Change

This is a story of an older public market that is struggling with change. A recently written article contained many interesting quotes that could be relevant to many global markets.

“The market's greatest strength – its history as a local institution – also makes it a place that's stubbornly slow to embrace change. And while no one wants it to become a cheesy tourist trap selling T-shirts and trinkets, no one wants it to be irrelevant, either.”

"Why change? some would argue. The market is fine. It attracts a million visitors a year and vendors say sales are still rising in the wake of the centennial. That sentiment overlooks the fact that there are plenty of challenges here, as well. Beyond the parking problem, which vendors say is No. 1, the buildings have a backlog of repairs. And then there are the shoppers who bitch about rotten produce, and plenty of others who say the hours are inconvenient. Others ask: Why aren't there more local foods?”

"Yes, the market is a great place for cheap produce and affordable meat options, however, the market is stuck in a time warp, minus a couple new specialty shops and those who choose to sell organic produce, local produce, and farm-raised meats. The problem is the latter are few and far between, with many vendors selling absolute garbage that might have fallen off the truck. I say it is time the market cleans up before it goes the way of the dinosaur."

“Some complain that the market's hours are impractical and don't serve customers or businesses. "The hours need to be convenient for customers, that's No. 1," says one trader. "I don't have enough days in the week to sell my stuff. I'd love to be open Sunday, to add another day to my schedule. I'm working at capacity now." Other vendors disagree, saying that they already work long hours and don't want to add a day. “

“The older generation of vendors had become so used to being ignored by the city, they often assumed an adversarial stance out of habit.  "They were angry with the city in the past because they'd asked for things and didn't get them," she says. "These guys had been duct-taping things together for many decades."

This market is in Cleveland, Ohio and despite its problems, appears to be working through its issues with a new CEO and new younger trader representatives. It exists in a dynamic growing neighbourhood and has extended its hours to cater for customer demand.

Have Your Say - click here.

Friends Of QVM Set Up Their Facebook Page

Friends Of QVM Set Up Their Facebook Page

A Facebook Page entitled “Friends of Queen Victoria Market” was set up in April this year and has gained over 900 “likes” including those from a number of traders.

The Page contains a number of posts most recently asking for more members. There are comments about renewal, photos of past traders, and general conversation. Just search for “Friends of Queen Victoria Market” on Facebook.

New Trader Association Formed

Remember the name QVM Traders Inc. because it will become a significant element for traders particularly as we move forward with renewal at QVM.

The association was incorporated earlier this year to represent all trader groups at the Queen Victoria Market. It is currently in caretaker mode with our QVMAC Representatives on the Management Committee and plans for a full election later this year. Traders will be invited to join the association over coming weeks.

The registered purposes of the association are as follows –

“To support market traders at Melbourne’s Queen Victoria Market as they maximise their business interests and potential. To encourage the development of the Queen Victoria Market as one of the world’s premier public retail markets through its service to local, regional, interstate and international residents and visitors.”

Have Your Say - click here.

Deli Hall Traders Under Siege

News from the Deli Hall suggests that traders are being asked to consider major issues that will impact significantly on their businesses.

QVM is critically reviewing the operation of the Deli Hall and how to prepare its offer for the next decade and forward. A number of traders have leases terminating at the same time and they are being asked to review their operations and prepare detailed descriptions of how they will meet the needs of deli customers in the future.

Constant assessment of a small business’s direction and focus is a good thing. It can be argued that traders and management have been complacent about the market’s direction over recent decades and of course the competition from supermarkets and fresh food centres has grown significantly. However, management have added another unwelcome ingredient to this review in the form of proposed rental increases. Hold on to your hat – we believe they are talking increases of up to 80%.

There is much to be thrashed out here. This is one of the first major tests of a new philosophy leading into renewal. We have a great Deli Hall. We need to make sure that our market doesn’t become a sanitised shell of its former self. Rents need to be based on an agreed Public Retail Market model, not a Shopping Centre model. And traders and management need to step slowly and carefully into the minefield that is changing consumer expectations. If they step together we may choose the right path.

Have Your Say – click here.

COMMENTS:
19/06/2014 17:48:10 Deli Hall "In relation to the rent increases - upto 80% - do we know how these increases in rent, once they have taken effect, will then compare to market rents in the rest of the market - as in the Meat & Fish, ""F"" shed shops, Victoria Street Shops, Food Court, and the Market Stall rents.
I am just wondering if this will bring them more into line with the other lock up shops within the market, or make them significantly higher?
In regards to be asked to assess their business plans, with their leases coming up for renewal, this is no different to any other standard commercial lease offered these days. Just because you have lease, does not mean that once it ends you are guaranteed to have it renewed, if you want to continue to trade. A new lease does not have to offered to the current tenants if management do not believe they are going to provide the customers with any benefit. Its sad, but thats part of business."

WHY My Old Mobile Phone Is Smarter

I have purchased a new mobile phone. Actually it is an old Nokia from 2005 but it is helping me become smarter, particularly when I am serving at my market stall. The phone is a fashion phone from another era but it does one thing really well – it makes and accepts telephone calls.

Today’s smartphones perform a bewildering range of tasks so why is my old phone smarter? It is what it doesn’t do that counts. It doesn’t “beep” me when BHP’s share price drops below yesterday’s price. It doesn’t “ding” me when a  friend of my distant cousin posts a cute picture of her cat on Facebook. It doesn’t tell me that I just received an email from Super Auto advising me of their latest offer for carwash, or that a LinkedIn associate just added Melbourne as their hometown. It just lets me get on with my day’s activities relatively free of interruption and able to focus on the task at hand.

And this is where the real benefit comes in for my market business. I need to concentrate on my customers. In fact, they demand it. We all know there is nothing worse than being ignored by a shop assistant more interested in their mobile phone than their customers. So to fill in the quiet times at my stall I no longer pull out my smartphone to go online. Instead I do some creative merchandising around the stall and look forward to giving attention to my customers the second they walk into my stall. That has to be better for business and of course if somebody from outside needs to contact me urgently my new/old phone is excellent at receiving phone calls.

One of my colleagues suggested I should simply turn down the sound on my iPhone which is fine for those with strong will power. But for the rest of us, why not pull out one of your old dumb phones from the drawer and use it when you are serving at your stall– it is a smarter thing to do.

Have Your Say – click here.

One Answer To The Car Park Dilemma.

While we worry about the possible displacement of traders during an underground car park construction and just where we can squeeze them in, the answer may come from Yangon Market in Myanmar (Burma).

In fact, as this video shows, the answer lays all around us – Elizabeth St, Victoria St, Peel St, Franklin St, Queen St, and Therry St. Not sure if Melbourne drivers have the skill to navigate the piles of food though.

QVM Night Market On Masterchef

Make sure you don't miss tonight's episode of Masterchef on Channel 10 (Wednesday 4/6/2014 at 7:30pm) featuring a contestants challenge at our own Queen Victoria Market Night Market. Here are some previews shots.

 

Latest Retail News – 1/6/2014

Latest Retail News – 1/6/2014

1. Australian retailer, Spotlight, to debut in Malaysia.
2. ASOS considers Australian warehouse.
3. French hypermarket chain, Carrefour, pulls out of India. 
4. Lorna Jane list of suitors includes Super Retail Group.
5. Disappointing first quarter doesn’t deter Gap’s expansion in China.
6. Sydney’s Broadway Centre to introduce in-centre moving fashion catwalk.
7. Owners of 7-Eleven buy Australian rights to Starbucks.
8. New kids concept Myer MyKids opens in Melbourne’s Emporium Centre.
9. Henry Bucks takes on new look for younger customers.
10. China’s luxury market fails to meet expectations for many retailers.

QVM On Masterchef This Wednesday

An episode of Channel Ten’s blockbuster cooking show, Masterchef, was filmed at the QVM Night market this summer and is scheduled to air on Wednesday 4^th June at 7:30pm.

The episode involves a contestant challenge. Set your reminders.

From Ivory Tower To Market Stall

Somehow Mark Smith (QVM Marketing Director) doesn't quite fit the "ivory tower" model and his experience working on Organics Trader and QVMAC Representative, Karen Birthisel's stall was certainly a long way from luxury. Here is his interesting story - 

"4.15 a.m. and the alarms sounds in my ear. Surely that is not possible! Didn’t I only go to bed about 10 minutes ago? The dog is excited; he must think that I am getting up to take him for an early walk….forever hopeful of either food or a walk that dog! Once he realises that is not the case he settles back comfortably on the bed, well to be precise on my pillow!

Slowly and in the dark I get dressed….hmmm what do I wear to work in Karen’s Garden Organics stall on a Saturday morning I wonder? Choosing not to go with a tie, I find some old jeans and about 4 layers of t shirts. Then on goes the beanie and with the weeks’ worth whiskers I think I can pass for a fruit and vegie trader. As it happens I have an old leather apron which I think about wearing. I look at it and it takes me back to when my Dad worked in the markets in Perth where I grew up, on Tuesday and Thursday nights unpacking the trucks. It looks smells and feels like the one he used to wear to what was his second job to help a young growing family pay the bills. In the quiet and still darkness of the morning the reflective nostalgia is not lost on me.

After a rushed breakfast, I make my way to the car to get to work on time. Living near to the market it doesn’t take me long at all, and I think to myself I could have had 4 more minutes in bed! Then of course I remember that Karen has been up since 2.30, readying herself, her stock and her business for what is the busiest day of the market week. The locked gates at the car park on Franklin Street threw me for a bit, then I think no worries I will enter from Queen St. Hmmm, they are locked too. Ok so I will have to drive up through the sheds and enter the car park from within the market itself. As my newly issued safety vest is a) in the office and, b) wouldn’t fit around my car, I determine that the hazard lights will have to suffice. I note their reflection on the 463 silver boxes I have to navigate through to get to the car park.

Once parked, I walk towards H shed. A miss spent youth tells me that the gathering of “young people” on the fringe of H shed aren’t there waiting for the freshest ingredients available at the market regardless of how wide their eyes are open. It appears to me the only ingredients they have been feasting on all night are chemically based!

Ah, and now I am underneath H shed and see that Karen has a few staff prepping the stall. She does the introductions and importantly a safety briefing and before I know it Alpesh is asking me what coffee I want. He is my new best friend!

Karen informs me I am to start on one of the corners, loading up the broccoli and carrots, and then follow my way around each of the empty shelves ensuring they are all choc-o-block full of produce. I am amazed at the care and consideration, the passion and thought in Karen’s voice and instructions. The level of detail she is talking about things like having the carrots laid out top to tail, ensuring there is a neat and straight line, so when it comes to the Zucchinis (we call them Zooks in the biz) there is enough room for them too. I will come back to those carrots later! How we have to just trim that little brown bit off the bottom of the broccoli so it is nice and white. As I am laying out all the carrots she takes time to show me which ones are rejected and why. I am reminded of the ad about the fish that John West rejects and wonder if I am hallucinating due to being up so early. She tells me about making everything really full and we share the line “stack em and watch em fly” and have a laugh, clearly the coffee is working now! We then talk about colours and textures and shapes and how we have to move something to make room for something else because there was too much the same. I note the precision in which the hessian is laid out on the boxes before the broccolini is displayed, how there is a whole box of cabbage leaves which I am reliably informed make a perfect bed for the squash and tomatoes to lay on. As my fingers start to seize up due to handling all the cool produce I start to look at them as if they are those little carrots I have been stacking up neatly. It feels like I could just snap one off and place with the carrots.

As I work my way through I am constantly amazed at the outstanding quality of everything I am laying out. It is just SO fresh. There are also lots of things I know of, but don’t see often. Purple carrots (told you I would come back to them), yellow beetroot, turnips and swedes, rainbow chard….who knew?  As a developing cook I imagine how I could use these ingredients, what and how would I cook with them. Karen has left me alone for a bit and almost as if she can read my mind she comes over and tells me how she would cook these ingredients, how to prep them, what to make, how to finish them and so on. Baking fennel with a balsamic glaze, maple roasted parsnips…it is now about 5.45 a.m. and my mind is racing on what I am making for dinner.

As we chat Karen says she has been thinking about doing QR codes that link to recipes or the origin of the grower, the region, and provenance and so on. I am not so sure about that. This to me is a business that doesn’t need a twitter handle, Facebook page or pinterest or instagram account. Just BEING here is the marketing for me. The belief and passion of Karen shines through in everything going on at this stall. I can tell from the staff, from the product, from the care that is taken and from the huge amount of stock on pallets that Karen brought down from storage while I was still sleeping!

Just after 6 am we are pretty much set up….or so I think. I grab a broom and give the stall a sweep out, and people slowly start to filter through. It is a quiet morning and yet there is always something to do. Although quiet, the shelves I filled with carrots and broccoli need replenishing. The grocery offer – which by the way is far more elaborate than I thought needs refacing and stocking up, The eggs need restacking, pumpkin needs cutting. Full celery needs to be cut into halves, dutch carrots (bloody carrots!!!) need trimming up and re positioning and guess what I turn around and the bloody carrots need restocking again!

All of Karen’s staff are really helpful and knowledgeable, if somewhat perplexed why someone from the office is in the stalls selling and helping out, especially at this time of the morning. I tell them I am learning and need to see what is happening on the floor…they kinda nod and at the same time look confused. Sharpie shares with me he didn’t even know there was a marketing department. Hmmm…note to self: need to market to the market that there is a marketing department!

I am now into a rhythm and go to the cool room to get a new box of carrots as without even looking I know now that they will need replenishing. What is everyone doing with these carrots I wonder!?

Karen says to me again that it has been a really quiet morning. I can sense that the market is a bit quiet, and yet we, well I, have been busy doing things, and with that it starts to get really busy. It is such an insight to listen and watch the customers. So many of them are regulars, so many of them ask the staff for advice and there are lots of questions about the origins of the produce, are the mandarins Victorian, to which the reply is no, we are still getting them from NSW for now. Victoria’s turn is in a couple of weeks. Lots of questions about how to cook things or what is new that I haven’t used before, or comments around the tomatoes being a bit ordinary last week, but they look great today, all of which are met with knowledgeable and helpful answers by the staff.

I am surprised to see that it is nearly 10 a.m. already and although I have been here since 5

a.m., it doesn’t feel like I have been her for 5 hours. I remind Karen that I have to leave soon to get to my daughters netball game and before I go we collect a small box of sensational organic fruit and vegetables. These form the dinner that you see in the photographs here.

I am so glad that Karen invited me to work at her stall. I am much more the wiser for doing so and along with Jenny and also Marshall, every time I work in the stalls I gain so much knowledge and information, stuff you just won’t get from a computer or email or countless meetings!

Thank you to Karen and all of her staff. It was fantastic to work with you all. If you would like me to work in your stall or business I would love to do so. You can drop me a line at mark.smith@qvm.com.au

 Thanks Mark"

Have Your Say - click here.  

COMMENTS:
02/06/2014 09:54:24 Mark - Organics Stall "It is great to see that Mark has once again stepped up to work in a stall at the QVM. I am not sure if anyone else from the IVORY TOWER has done this yet.
The only thing l would like to say is this, it is all great to come and spend a few hours working in a stallholders stall, but it would be once to see the IVORY TOWER staff spend the entire day working on a stall, like the rest of do.
I know where Mark is coming from, starting at 5am in the market on a Saturday, but hey guess what, l was still working there at 5pm. I don't get to leave to go to a family event, or sporting event, unless l close for the day. Thats part of Market life for a trader. Our market works weekends, but the IVORY TOWER is a skeleton staff over the weekend.
Note about the marketing department..... perhaps people don't realise you exist, because the marketing of the market is so poor.......
I hear ads for Caribbean Gardens and South Melbourne markets all the time, but never for Vic. Your counters may say numbers are up, but hey come to the Specialty Area's and ask us, old timers as to how the aisles are now empty, and we are seeing less and less people. The morning crowds are gone, and our lunch time rush is now a just steady pace.


I am not having a go here Mark, its great you actually come out and work in the stalls, and see what its really all about, and get a feel for what we do every single day, and that its not a case of just opening some doors, and here we go, lets a mike thousands of dollars, and then close the doors and walk away each night, that it is much, much more than that, and a lot of work goes into each and every set up, no matter what the trader sells." Lance

Short News Stories – Retail

Starbucks Australian Outlets Snapped Up – The family behind Australia’s 7-Eleven stores plans to turn around the struggling Starbucks chain in Australia following the recent purchase of 24 outlets. Starbucks is regarded as an international success but has always struggled in Australia with its established strong coffee culture.

Consumer Confidence Takes Biggest Hit Since GFC – the government’s tough budget has had a huge impact on consumer confidence with a 15% fall over the past 5 weeks. The ANZ-Roy Morgan Consumer Confidence Report says the consumer spending outlook is still expected to improve this year but has been inhibited by the response to the budget.

ACCC Takes Action Against Egg Industry – the ACCC is taking the Australian Egg Corporation and two egg companies to court over what it says was a deliberate attempt to influence the price of eggs by restricting supply. Executives of two egg companies who also happen to be on the board of the Australian Egg Corporation are involved in the proceedings.

The Big Retail Movers Are Ethical And Social

A recent Australian study shows that shoppers are more likely to be attracted to retail products that support someone in need as long as it was roughly price comparative with the opposition products.

Supporting animals and the environment also ranks highly as consumers look to vote with their wallets in tackling some of the issues perceived as long neglected by governments.

Ethical and sustainable products and brands are on the rise while “social entrepreneurship” is one of the fastest growing sectors in the Australian economy as illustrated by the number of charity retailers (Salvos, Vinnies etc.) now located side by side mainstream retailers in shopping areas.

Short News Stories - 25/5/2014

Federal Government Introduces Cloud Computing Guide for Small Business.

Go here - http://www.digitalbusiness.gov.au/2014/05/21/cloud-computing-guides-for-small-business/

The Unknown Cosmetics Giant.

French company, Sephora, is to open its first store in Australia this year and they are looking to up to 20 stores in coming years.

Sephora is the fastest growing brand within the LVMH Group which includes Louis Vuitton, Givenchy and Bulgari. They are the market leader in Europe and are expected to offer stiff competition to the likes of David Jones and Myer here in Australia.

Sephora offer a different customer service strategy to the department stores with staff able to sell across brands and they are famous for offering samples to customers.

Airline Charges for Overhead Bins.

In a move seen as a precursor for other airlines, Frontier Airlines has introduced a $25 fee to use overhead bins on its flights. This is part of an international trend to force consumers to pay for services that were once free. In the US ticket prices only account for around 70% of the revenue generated by airlines.

Latest Retail News – 25/05/2014

Latest Retail News – 25/05/2014

1. Hospitality workers receive penalty rate cut on Sundays.
2. Domino Pizza introduces PayPal for online payment.
3. David Jones considering property sell-off.
4. Four Harvey Norman franchisees fined for misleading customers on returns.
5. ASOS launches campaign aimed at university students.
6. Study shows ethical products are major driver for consumers.
7. Lifestyle brands like Nespresso and Cath Kidston seen as growth markets.
8. The Westpac Melbourne institute index of consumer sentiment fell by 6.8 per cent in May.
9. April year on year retail sales growth in UK the fastest for a decade.
10. Iconic jeweller, Tiffany’s, sees double digit sales growth worldwide.
11. Ebay subject to biggest ever online data breach.
12. Ibisworld reports organic farming growing by 12% per year.
13. Melbourne butcher ditches cash, only accepts card.
14. Adidas to print your Instagram photos on your shoes.

Melbourne Butcher Ditches Cash

In an interesting move, a Melbourne butcher has opened a new outlet that only accepts card payments and no cash.

The butcher claims that the move has been well received by customers and any lost sales are well covered by the time saved by not having to balance the tills at the end of the day and by removing the problem of money handling and hygiene.

Presumably he relies on “paywave” payment technology.

Is this a sign of the times for all cash payments in retail?

Have Your Say – click here.

Trader Returns From Overseas Market Tour

Trader, Ivano, returned from his self funded market tour this week with a wealth of information and global market contacts.

His trip included visits to markets in Italy, the famous Barcelona markets in Spain, and the equally famous London markets like Borough Market, Spitalfields, Camden, and Covent Garden.

He is very grateful to Global Markets Expert, David O’Neil, for setting up meetings and tours with senior market management and traders across the various European markets. Ivano has gained a lot of information about how these markets operate and is optimistic that the contacts he has established will form the basis for ongoing communication and liaison.

Firsthand knowledge of overseas practices and the ability to communicate with markets that have “been there, done that” can only enhance the efforts of the trader family as we work through our own renewal process.

Have Your Say – click here. 

Lord Mayor’s Commendations Reminder

The Lord Mayor’s Commendations recognise the commitment of small business proprietors, including market traders, and their contribution to the City of Melbourne's prosperity. This is a reminder that applications for the commendations are due by 13^th June.

Traders with 10+ years of operation are eligible and the process involves filling out an application form, and attending an evening presentation ceremony at Town Hall.

It is not often that traders receive outside recognition for their efforts and the presentation ceremony is an excellent opportunity to network with other small business operators in Melbourne, promote your business, and promote the Queen Victoria Market as a whole.

Application forms are available online - https://www.melbourne.vic.gov.au/enterprisemelbourne/BusinessSupport/lmcommendations/Pages/Applications.aspx

Or you can contact QVMAC Representative, Greg Smith on 0406 222 020.

Market Renewal - Barcelona Style

San Antonio Market in Barcelona is one of the city's better known markets and it is currently undergoing a rather dramatic renewal. We understand they are going underground at this site but leaving the old market building in place while they do it. Meanwhile the market has been moved to a temporary location. Our pictures tell the story with the interior of the temporary market shown to the right.

      

Have Your Say - click here.

Traders Start Using PayPal Instead of Traditional Bank EFTPOS

A couple of QVM market traders have become early adopters of the PayPal mobile EFTPOS system.

PayPal Here involves the use of a smartphone or iPad connected wirelessly to a special PayPal card reader. The physical sales process involves entering the transaction details on your smartphone or iPad and then handing the card reader to your customer who inserts the card, enters their pin number, and presses ok. The completed transaction shows up on your smartphone or iPad.

Why adopt the PayPal system? Well, it comes down to economics and it is a matter of doing the sums for your business. Current users of the mobile EFTPOS facilities provided by banks will be familiar with the monthly minimum $45-50 fees. Typically this is made up of a $25 equipment fee plus a minimum $20 service fee which is part of the percentage rate charged on transactions (usually 1-1.5%).

We understand that PayPal is charging a flat 1.95% for chip and pin transactions, and 2.95% for swipe transactions – chip and pin is cheaper because it is more secure. There is an upfront fee of $99 for the card reader but we understand that the flat percentage fee is the only other fee involved. You may be involved in some increased data usage on your smartphone or iPad.

Our early adopters are actually waiting on the release of the latest app from PayPal on 28^th May before they start using the system but we will keep in touch with them and report on progress next weekend.

Have Your Say – click here.