Rotsne

Pizza shops owner versus Just-Eat

In business culture on January 3, 2015 at 08:47

My cousin told me that the Pizza shops in his hometown Holbaek has left Just-eat.dk, which is an online market place for shops which sells food products.

The reason is that the online market place has raised the referral percentage they want every time customers order a pizza so the market place received between 12 and 25 percent of the orders amount.

I believed that the percentage would have been much lower. Now I understand why a pizza in Denmark is so much more costly than pizzas I have purchased abroad. It is an insane percentage.

Apparently the pizza shops have been lured into the system only to experience a steady but constantly raising of the referral percentage every year.

It is very much the same we experienced with our accounting / invoicing system Microsoft Dynamics and some of the firms in my ERFA-group has experienced with E-conomics (another accounting / invoicing system) lately.

When I started in my business many years ago we used C4. Our firm had to pay DKK 4,000 every year in order to receive the latest updates. Now the bill last year was DKK 80,000. If you look at the prices on milk or fuel for cars you cannot observe a similar explosion in prices.

One of our competitors changed to E-conomics and used a hosted solution. They paid about DKK 400 per month (They are a small firm). Suddenly they were informed that they had to pay almost the double amount. They feel caught and have no option but to find the money elsewhere by firing one of their employees.

We also had to make various cuts in our production over the years. When I started my firm employed about 80 people. We are only 55 now.

The question is: To what kind of software can you change where you are promised unchanged cost-level for the next 20 years? We have to find such a system because the operating systems the systems run on are retired too soon. Windows XP was discontinued maybe 5-10 years before it was necessary because Microsoft wanted to force people to use Windows 8 and now 10. Windows 7 which is the most stable system forever maybe also be gone in a few years.
We have tried to education our employees to keep up with the systems but our firm not being a part of the industry where they live of selling product have maybe DKK 2-3,000 per year for courses. The IT-industry in Denmark also has the problem where there are not enough places where people can take the courses so the prices for education are fixed. They differ maybe with 1 percent.

Denmark is no place to invest your money if you are not in the IT-industry. Computers, software and consultants are too expensive. The prices are too high on anything.

For the Pizza shops in Holbaek they now face the challenge developing their own pizza portal they own themselves. It might be the best move and investment they will do in their lives. I wish them luck while I at my work must live with the challenge of facing the greedy software suppliers who do their best to shut any kind of production in Denmark down. During the last 10 years every third industry workplace in Denmark has shut down. I fear my time will come soon.

Source:
Kamp mellem Holbæk-pizzeriaer og Just Eat (SN.dk)

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