Retravision looks to steal BSL WA members

By James Wells

PERTH: With the support of BSL members in Western Australia, Retravision is expected to make an offer of up to $500,000 today to purchase the rights to the Betta Electrical and Chandlers brands in Western Australia, South Australia and Northern Territory.

The offer follows a meeting held on Tuesday by 22 Western Australia Betta Electrical franchisees which voted overwhelmingly in favour of a proposal to join rival group Retravision WA.

Current.com.au understands that under the proposal, Retravision WA will add the Betta Electrical members to its group alongside its other unidentified members – West Coast Hi-Fi and Fridge & Washer City.

A group of four BSL members in Western Australia in conjunction with Retravision WA CEO Paul Holt are expected to deliver a proposal to BSL receiver Phil Carter of PricewaterhouseCoopers by 5.00pm today in Brisbane.

Current.com.au understands that the four retailers supporting the move to Retravision WA include Doug Castle from South City Betta Electrical in Perth, Roy Davies from Midland Betta Electrical & Gas, Clive Berryman from Bunbury Betta Electrical Superstore and Ray Keevil from Keevils Betta Electrical in Esperance.

Sources close to the bidding process have estimated the offer for the Betta Electrical and Chandlers brands for trading in Western Australia, South Australia and the Northern Territory to be between $300,000 and $500,000 or 10-15 per cent of the purchase for the entire franchise business.

Under the Retravision WA franchise agreement, unidentified members can sell ‘local models’ from companies which are not core suppliers to the Retravision group. This would allow Betta Electrical and Chandlers stores to maintain strong links with companies including LG Electronics.

BSL franchisees who join Retravision WA will be offered 12 catalogues a year and television advertising in a similar manner to Fridge & Washer City which is attractive to regional members. Additional advertising of one full page advertisement every fortnight is expected to provided in the Sunday Times newspaper provided that the members that join Retravision deliver at least $30 million in sales.

Under the proposal BSL members joining Retravision WA will not have to pay any joining fees and will have to provide security for two and a half times monthly purchases.

Current.com.au understands that the fee structure put forward by Retravision WA is likely to be more expensive than the BSL model, but higher rebates have been promised which is likely to offer most stores a net gain of between two to three per cent annually.

Retravision WA is also offering full warehouse facilities to BSL members.

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