INDEPENDENT NEWS

New Venture A Big Deal For Small Business

Published: Wed 17 Oct 2001 09:43 AM
New Venture A Big Deal For Small Business
Small businesses all over New Zealand will have the opportunity to be part of a new ‘wholesale’ market with today’s (Oct 17) launch of new company, the Hub. The new company is ‘collectivising’ its small business customers and giving them ‘big business’ buying power.
Managing director of the Hub, Ken Mackley, says the Wellington-based venture is doing what big suppliers of electricity, telecommunications and petrol have failed to do for years – give ‘corporate’ buying power to New Zealand’s burgeoning small business sector. Four former Shell executives have established the company and a public share offer is planned for late in October.
The Hub has completed fuel and telecommunications supply agreements with Caltex and Clear, and has secured bulk electricity supply through broker, Group Energy Purchase Ltd. Other supply agreements cover stationery (Wickliffe), computer services (ComputerLand), travel (Atlantic and Pacific), vehicle rental (Budget Rent-a-Car) and tyres (Beaurepaires). More are planned.
The agreements give Hub customers access to substantial savings and a single monthly invoice for all of the different products and services purchased through the Hub.
Small Business Poorly Served
“The small business sector is increasingly important in New Zealand and has been poorly served by the big suppliers of electricity, telephone services and fuel, in particular, said Mackley.
“This is a real first for New Zealand,” he said. “There have been sporadic discount offers made in the past, but the large corporates are forced, by the way they’re set up, to treat small businesses like individual retail customers. Or they’ve simply chosen not to do what it would take to give small businesses a better deal.
“Most small and medium sized businesses have been paying up to 20 percent more than they could for “must have” services.
“The Hub is doing both ends of the market a favour,” said Mackley, “by ‘collectivising’ the small business sector for the big players and by negotiating great pricing deals for our small business customers.”
Mr Mackley said the Hub had developed a service giving customers access through a nation-wide toll-free phone service as well as Internet access. Customers would be able to go on line for pricing information and to track their spend month by month and historically. And there was no joining fee to become a Hub customer.
Business interested in finding out more about the Hub should call 0508 000 000.
ENDS

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