Aardvark

Bruce Simpson · Site Admin Joined: 02 Jan 2005 Posts: 6060

This column is archived at: http://aardvark.co.nz/daily/2009/0113.shtml

What the hell was going on at Ferrit?

Were these people living in a time warp that made them think it was still 1999 and the dot-com boom was alive and well?

How on earth can you keep 37 people working full time on a site like Ferrit?

How can you burn $12m a year just keeping the thing ticking over?

Who honestly believed that a lacklustre site like Ferrit could turn over more than the $240m needed to break-even?

Has Ferrit's demise made life harder for those with genuinely good ideas and viable e-tail concepts to attract the funding they need to get off the ground?

Zeus · Joined: 21 Jan 2005 Posts: 54

I am so glad we won't be subjected to those horrid ads no more.

Bruce Simpson · Site Admin Joined: 02 Jan 2005 Posts: 6060

snoophound · Joined: 22 May 2006 Posts: 44

Blindingly stupid concept.
Why they ket throwing more money down the plughole and carrying that number of overheads including the overpiad boss who knew nothing about online is incredible.
Definitely another pig that didnt fly.

jonmac807 · Joined: 29 May 2008 Posts: 25

That fact that it was Telecom is also an issue. As I travel around fixing computer in peoples homes I note that the telecom customer base seems to be an older person/persons rather than younger folk so pushing "geek" advertising to their market place is patently offensive!

On that subject, being a Telecom Free person, I find it most annoying that when I log into my Yahoo mail account, which I have had for around 10 years, I am confronted with Xtra stuff. If I wanted Xtra as my service provider I would use them. I don't so please get out of my face!

Paul Reynolds has a hard road to hoe to get rid of the Rodderick Dean. Teresa Gattung image that so many of us have of Telecom with the associated lack of investment in services and customer support. If I ring a help desk I personally prefer to talk to someone who speaks my language and understands what I am trying to tell them. It will take years for that to happen. Good luck Paul!

smeenz · Joined: 06 Jan 2005 Posts: 926 Location: Auckland CBD

techy · Joined: 15 Feb 2005 Posts: 422

Bruce Simpson · Site Admin Joined: 02 Jan 2005 Posts: 6060

Here is another interesting insight into the bungling and bumbling behind the demise of Ferrit.

digidog · Joined: 09 Sep 2005 Posts: 189 Location: Queenstown

snoophound · Joined: 22 May 2006 Posts: 44

You got that right in the last para
Telecom NZ is like telstra.
Its incredible how many Gattung era sycophants still inhabit the higher echelons of TCNZ.
The great thing Sol Trujillo CEO of Telstra has done is clean out a lot of the 20 year fail upwards brigade that infest Telcos.

zkarj · Posted: Tue Jan 13, 2009 10:28 pm Post subject:

I work for a company that counts Telecom as one of it's biggest customers. From what I come across on a day-to-day basis over a period of four or so years I can tell you that it shouldn't all be blamed on the 'upper echelons' of management.

edwin · Joined: 05 Jan 2005 Posts: 1230 Location: Wellington

telica · Joined: 06 Jun 2006 Posts: 14

sigh i knew it wouldn't work from day 1 (and i've been involved with enough web failures to know) At least with GameSwap.co.nz we didn't go head on with TM we approached from a niche angle. Oh what I would have done with $15 million dollars. We can't even find $100k worth of investment Sad

.

edwin · Joined: 05 Jan 2005 Posts: 1230 Location: Wellington

kanedavid · Joined: 13 Jul 2006 Posts: 18

It is interesting that Telecom made the comment "Telecom started Ferrit to grow NZ's online Retail Market"... They then go on to say that "Since 2005 we've seen big growth in this area"

They also state that the reason for closing was that the break even point was slipping further away - Hang on a minute... that surely isn't right.

If Telecom have seen good growth in Ferrit in the last few years, surely that would mean that their break even point would be getting closer and closer?

Since it clearly isn't, then it suggests that their cost increases (overheads) are growing faster than the business that they are bringing in is growing - obviously a flawed business concept anyway.

It is interesting that the office employed more than 30 something people to run a website - Just out of comparison, I wonder how many people Trade Me employ?

Looking at the charges, terms and conditions on Ferritss site, it isn't hard to work out what was wrong... Their commission charges are ridiculous... most categories of product were between 6% and 8% - This of course on top of the actual monthly fees etc.

Guest · Posted: Fri Jan 16, 2009 10:29 am Post subject:

edwin · Joined: 05 Jan 2005 Posts: 1230 Location: Wellington