Yes you can, but this market has changed substantially from the early days, and the discounts have dropped further from the time of the last post.Originally Posted by MightyMomo
I have discontinued this business, as it was just no longer profitable.
The business has changed so much that every cash/sales point now sells prepaid. They do not even care that they only make 1or 1.5%. What they are looking for is to get customers intro their establishments to buy the other higher priced goods. Any one now who has cellphone banking can buy prepaid direct from their banking app. Why should they by a voucher from a shop down the road?
Only the very big players, or anyone thinking about getting into this business will require 7 to 8 figure cash amounts to be able to even start negotiating with each the networks(MTN,Vodacom, Cell C, Telkom, ESKOm and each individual municipality), then you have to compete with all the banks, all retailers, Glocell and Blue Label Telecoms to name a few to get into the business. Never mind the cost of marketing, equipment and other running costs to maintain a 24/7 business. Another point to remember is that there is no credit. All purchases are prepaid, even directly from the network. In the case of the big players, they use guarantees when they purchase the bulk prepaid stock.
Another point with prepaid electricity, with some municipalities, you do not get a discount on the sale of prepaid, but get a fixed rate of 70c or something per transaction. So the cash deposit fee for outstrips your bottom line.
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