DIXONS - Voucher Code changes and Nintendo Wii Commission change

[Julia Stent]

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Message from Dixons:

Thank you all for your feedback.

As you know Dixons regularly review our commissions across our entire range. This is a necessity of our business model as we are operating on very tight margins, indicative of the consumer electronics market. As a consequence we sometimes have to change commission structures and discounts within short timescales. We understand that this can cause an impact on our affiliates and partners in general and aim to minimise these occurrences when possible. Sadly on this occasion both were unavoidable and these decisions had to be made within very tight timeframes.

With regard to the different type of affiliate codes these are available as an extra tool to help improve the conversion for affiliates. GIMME5 has been offered as a tactical incentive, we have extended it as a number of affiliates seem to be enjoying success at the moment. This is among the best of all the major electrical retailers and will we currently plan to keep this in place to cover at least this weekend. Sadly this is not an incentive we can provide indefinitely. The Save £x on spend codes are seen as more long-term discounts. At the end of the day we felt it was right to offer both and provide affiliates with the opportunity to view which type of message is more effective for their visitors.

We aim to provide as much notice as possible with regard changes to the programme. We work very closely with the account management team at AW and will continue to strive to improve the programme for both affiliates and Dixons.

DSG International PLC

[Frostie]

Thanks for the update.

TBH it's exactly what I expected and no different to any other merchant who chops and changes their commission levels... "This is a necessity of our business model as we are operating on very tight margins". What gets me is that this line tends to be used by all the big merchants and hardly ever from the smaller ones. The strange thing is, I expected the large merchants to have more give on margins as they are purchasing in bulk and therefore I would expect it to be more inline with the Supermarket/Milk scenario. I guess with the Wii, its a different story.

Anyhow, good to hear that the GIMME5 is staying atleast until this weekend

[amcd78]

Unfortunately, I don't quite get this: -

"Sadly on this occasion both were unavoidable and these decisions had to be made within very tight timeframes."

So does that mean that Dixons profit margin was suddenly reduced at the last minute and so they had to pass this onto us??

Also, as topkit says, these bundles are generally split 50/50 between console and software/accessories. I can maybe accept it if Dixons were just selling the console for sub-£179 (margins tight - they want to be competitive), however they've bundled in 100 quids worth of games. I just don't buy it.