Wise Buys
Wise Buys is a retail internet portal that increases family’s consumer knowledge and access to household goods and services at value-for-money prices. Wise Buys empowers families to ‘lock in’ money for essential needs and make ‘wise’ purchases that contribute to their wellbeing and wealth building and limit the risk of monies being diverted to inappropriate spending.
Goods available through Wise Buys range from groceries and basic household needs to furniture, whitegoods, clothing and electronic equipment. Families are supported to purchase larger assets such as vehicles, boats and garden sheds. MPower Consultants assist families with direct debit deductions, lay-bys and online payment options, ensuring secure payment methods and to limit high risk debt accumulation. Wise Buys uses local transportation businesses to ensure efficient and affordable freight options to deliver items directly to the family.
Wise Buys is particularly helpful to families who are vulnerable to impulse spending or pressure to support addictions as it allows them to plan ahead and lock money down on things they need and reduce their access to cash.
Wise Buys offers a practical way for local, regional and national businesses to show corporate social responsibility by supporting disadvantaged peoples while enhancing business opportunities for their organisations.
Families who sign up to Wise Buys are required to do a plan through the MPower money management program, that assists families to meet their basic needs and build wealth. Through an MPower Conversation, coaches work with families to map out where they are in their lives, where they want to be and what they need to do to get there. Participants set goals and build family budgets and receive follow up coaching sessions to help them stay on track. Wise Buys is available to all families in the four welfare reform communities through their local Opportunity Hub (O-Hub)1.
Objective
• Families have access to a diverse range of home products that are sourced on the basis of quality, durability, value and usefulness, through purchase, payment and distribution arrangements that provide best value for money.
Funding and partnerships
Wise Buys is a component of Social Responsibility Stream of the Cape York Welfare Reform Agenda – a tripartite partnership between the Australian and Queensland Governments, and Cape York Partnerships (CYP). Welfare Reform currently operates in Aurukun, Coen, Hope Vale and Mossman Gorge.
Wise Buys is part of MPower, which is funded by the Department of Families, Housing Community Services and Indigenous Affairs.
CYP seeks partnerships with businesses who are interested in developing commercial and consumer beneficial partnerships that increase access to the Cape York market and generate sales of attractive goods and services.
Operating model
• Plan – MPower Consultant supports families to purchase their priority ‘needs’ and ‘wants’ outlined in their budget2 and advises them on their spending options available.
• MPower – Families use the Wise Buying toolbox to learn about good consumer practices and what to avoid so they are confident to independently locate the best value for money products and services and negotiate with traders.
• Access – Families use the iBank to access up-to-date Wise Buys catalogues of goods and services including specially discounted items negotiated with suppliers and also to use the internet to locate their own items.
• Purchase – Families use their own financial products to make purchases or obtain support from an MPower Consultant through the purchasing steps including any specific Payment arrangements like lay-by or Centrepay.
• Deliver – Families use the freight options brokered by MPower to arrange delivery to their home.
The case for reform
Basic social norms that are the glue to any society (such as sending children to school, respecting others, and taking care of one’s family and one’s house) have significantly deteriorated in Cape York communities. Passive welfare has resulted in welfare payments being a poorly used and a problematic resource for families. Welfare Reform seeks to remove welfare dependency and encourage families to climb the opportunity staircase so individuals and families participate in the real economy. The goal being to enable Cape York people to have the capabilities to choose lives they have reason to value.
This requires foundations of strong cultural norms, enabling structures, and rational incentives that ‘nudge’ people towards capability,3 and responsibility building opportunities. The necessary behaviour change can be precipitated when people are engaged in building a vision for their future and getting support to achieve it. CYP uses a ‘scaffold’ approach that supports people along the transition path, using education, coaching and incentives, which are slowly reduced and as people begin to take more responsibility.
Many Indigenous families in remote communities have higher than average debt, are not spending enough on basic needs and are diverting significant amounts of income on harmful addictions. They usually have limited local purchasing power with access to only one ‘general store’ and significant variation in quality, price and availability of goods and services. Many families are not ‘consumer savvy’ and so are routinely targeted by unscrupulous traders who sell inferior products at vastly inflated prices and lock families into payments they cannot afford.
In 2008, CYP conducted a Wise Buys trial to assist families towards responsible spending. The trial was successful in showing that a large number of families will take up new opportunities when given the choice. It also affirmed that many families are vulnerable to impulse spending and pressure from others to divert income away from essential needs towards supporting addictions. Such families could best benefit from opportunities to voluntarily lock money down on essential needs and avoid supporting addictions.
Wise Buys supports families to increase their access to quality and affordable mainstream goods and services and become consumer savvy.
Alignment with the Cape York Agenda
CYP’s role is to implement the social, economic and cultural development goals of the Cape York Agenda, developed by indigenous leaders from Cape York. CYP has developed a Third Way to enable Aboriginal families to move from passive welfare dependency to real economic participation. This Third Way shifts from passive service delivery to an approach that combines personal and family responsibility, capabilities development and tangible opportunity products to enable individual and family pathways to a better life.
Wise Buys enables families access to mainstream markets, increasing personal responsibility and participation in the real economy by ensuring families are directing their incomes towards meeting basic needs of families and generating wealth creation.
1. O-Hubs are purpose built community centres staffed by a team of professionals that include local people, who offer individuals and families access to a range of opportunity products. These products are designed to support personal responsibility and increase participation in education, employment, financial management, housing and other endeavours.
2. Any inconsistencies with products and/or budget the family is advised to talk to their coach
3. Capability includes skills and knowledge development and developing behaviours conducive to getting ahead.