Before reading this you may want to read my 'Insatiable Greed' blog, which is one article before this one under opinion.
I got a reply to my email I wrote from Trade Me:
We appreciate you getting in touch to provide feedback on our new fees
structure. I'm sorry you feel these are too high, Raymond. Our success fees for
general items have not increased since February 2011 and before making this
increase we did a lot of research to ensure we were being fair, good value, and
One of the primary things we took into consideration was
the increase in visits to Trade Me (up 18% in the past year). We’ve been
investing a lot to ensure Trade Me is represented strongly across the growing
range of mobile platforms. We now have five mobile sites and applications for
interacting with Trade Me, and mobile visits now make up over 25% of total
visits to Trade Me.
We think we're providing a great service to our
members and a fair price.
I have passed your feedback on to the site
suggestions team too. We always appreciate our members' input, it's what helps
keep Trade Me a great place for buying and selling!
My final response:
I'm sure my comments won't be changing anything, however, your reason for the increase makes no sense.
Surely increase in traffic means
increase in business, evidenced by increasing profits. Those extra profits
would cover the cost of extra traffic. That is how business works. There are
only two reasons to put your prices up. One, your profits are down (not true
in this case). Or two, because you have a dominant market position and
therefore know you can get away with it. It doesn't matter when you last put
your prices up, clearly you don't need to - and that is what is so morally
You were charging a fair price when you had an 8.4% jump in its
annual profit to $75.6 million. Now Trade Me has decided to cream some more
profit off the hapless NZ public, like happens so often in 'God's
The extra cost is not big per se but add up increases in so many
areas of business in NZ and it bites. All I ask is that you include social responsibility in your business decisions. Something sadly lacking in modern
The standard of living throughout history has always been low for the working man. In the late nineteenth century, businessmen in Britain started caring about the worker and giving them something back. That led to the uplifting of living standards of the working man that that spread around the world and we still enjoy today. Greed has got business in its teeth now, and business with morality has gone. The big crash in the financial world a few years back was a warning of what insatiable greed leads to. Did anyone learn the lesson?