Topcashback Quidco merger

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Sarah
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Re: Topcashback Quidco merger

Post by Sarah » Sat Nov 10, 2018 6:41 am

planteria wrote:perhaps they'll be able to argue that with more scale and pooled resources they'll be positioned to grow the cashback model as a whole and benefit consumers who are not generating cashback at all this stage.
Also a customer that decides to pay for a premium account will no longer have the dilemma of choosing between Quidco and TopCashback; they'll be able to find all the premium benefits in one place for a single fee. But of course that raises the question... will the premium subscription price remain £5 or go up (or how soon and by how much)!
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Re: Topcashback Quidco merger

Post by richard@imutual » Sat Nov 10, 2018 7:26 am

planteria wrote:perhaps they'll be able to argue that with more scale and pooled resources they'll be positioned to grow the cashback model as a whole and benefit consumers who are not generating cashback at all this stage.
An argument that I'm sure has been advanced for every large merger ever. "We'll be able to do better things as a result". But if it reduces competitive pressure, history tells us that the consumer will be worse off in the long run

In economics I was taught that the threshold for considering a company to be overly-dominant was when it held more than 30% market share. This combined company would have 99%+ (depending on your definition of "cashback")
Sarah wrote:Also a customer that decides to pay for a premium account will no longer have the dilemma of choosing between Quidco and TopCashback; they'll be able to find all the premium benefits in one place for a single fee.
Surely they have that choice already? Also, I would think the merged company would continue to run the sites separately for some time to come. They can still achieve most of the merger benefits without needing to consolidate two brands into one
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Re: Topcashback Quidco merger

Post by Beachboy » Sat Nov 10, 2018 7:38 am

If they do merge there is a chance in the medium term at least that they might want to retain two brands to give the perception of choice for those that are not aware/interested in finding out about ownership. I think it was H Samuels, Zales and another jeweller I can't recall for a minute that all used to be within very close proximity of each other on a small high street. All owned by the same parent company but gave customers the perception that they had the option to shop around.

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Re: Topcashback Quidco merger

Post by ukrussian » Sat Nov 10, 2018 10:44 am

Beachboy wrote:If they do merge there is a chance in the medium term at least that they might want to retain two brands to give the perception of choice for those that are not aware/interested in finding out about ownership. I think it was H Samuels, Zales and another jeweller I can't recall for a minute that all used to be within very close proximity of each other on a small high street. All owned by the same parent company but gave customers the perception that they had the option to shop around.
I think you mean Signet, H Samuel until the better value from a sandwich than a pair of earrings gaff.

https://www.signetjewelers.com/stores/
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Re: Topcashback Quidco merger

Post by Sarah » Sat Nov 10, 2018 11:50 am

richard@imutual wrote:I would think the merged company would continue to run the sites separately for some time to come. They can still achieve most of the merger benefits without needing to consolidate two brands into one
Yeah, agreed. I was looking further ahead and assuming they combine the brands pretty much as soon as they think they can get away with it. The current two brands do each have their own strengths and differentiators such as the 1%-5% top-ups from TopCashback and better organised/more generous bonuses from Quidco. They both offer premium withdrawal bonuses. I've actually been considering upgrading to premium lately (probably at TopCashback; the threshold for making it pay off isn't very high) and it would be an easier decision after the brands are consolidated, so long as they don't adversely alter the price or benefits too much, but obviously I don't dispute that loss of competition seems likely to be detrimental for customers in many other ways.
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Re: Topcashback Quidco merger

Post by Constantine » Sat Nov 10, 2018 4:18 pm

ukrussian wrote:...

I think you mean Signet, H Samuel until the better value from a sandwich than a pair of earrings gaff.
It was Ratners Group until Mr Ratner made that joke about a 99p M&S prawn sandwich and the business almost tanked. Changed its name to Signet Group shortly afterwards.
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Re: Topcashback Quidco merger

Post by Phil85 » Sat Nov 10, 2018 9:56 pm

Thesedays you often find H. Samuel and Ernest Jones opposite each other or very close and they are both owned by the Signet Group
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Re: Topcashback Quidco merger

Post by Boro Boy » Sun Nov 11, 2018 12:13 am

No news here, there is more than one company which pits its different wings against each other. Berkeley Homes comes to mind; here the other subsijeries - St George's Developments, St James's Homes all fight for development land against Berkeley Homes...! I know it doesn't make sense and when I asked someone close to Tony Pidgley (the MD) why they do this I was told "...it keeps the different factions on their toes"

Strange way of doing business but it seems to work...!!!
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Re: Topcashback Quidco merger

Post by blythburgh » Sun Nov 11, 2018 7:31 am

It makes sense to have H Samuel and Ernest Jones near each other as one sells higher priced better quality stuff than the other.
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Re: Topcashback Quidco merger

Post by Boro Boy » Sun Nov 11, 2018 11:37 pm

blythburgh wrote:It makes sense to have H Samuel and Ernest Jones near each other as one sells higher priced better quality stuff than the other.

In the case of Berkeley Homes the difference fragments are fighting over the same land only to sell the same quality end product... so not the same situation as your example. :think:
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