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Why you cant have a new phone (at sale cost) whenever you want.
When major carriers (ie Verizon, T-Mobile, AT&T, and Sprint) sign you up for new service, you get the optimum price on the phones. They do that so that the cost of phones seem reasonable. In reality, that phone you just purchased for lets say $50.00, actually costs about $200+. The carriers eat the $150 or so so you will buy. (who would buy a RAZR for $200+ ?) They eat the cost in hopes that you will stay with the company long enough for them to get that money back. Typically, to get the money back that they discounted off the phone will roughly take about 1 year. In order for the company to make money, they need an agreement saying you will stay for 2 YEARS in order to cover their cost and at least make a profit.
This means a few things:...
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this is ground breaking information.
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also do you know the difference between wholesale and retail pricing. retail on say v3m is 219.99, wholesale is about 120.00 so vzw pays around the 110.00 mark. but if they buy enough quantity, they can receive more off what they pay. so if they buy say 25,000 then they get an additional 25% off.so in the end they are only paying 82.50 a piece. so if they sell at the 50.00 price, then they start out only loosing 32.50. but since the actual service is only about 1 cent cost per minute. then how much do you think they make off service a month. then if some one gets any features. then in about 60 days- 2 billing cycles they have made back what they started out loosing. most stores dont pay retail for there merchandise. they pay wholesal...
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Yeah...here is the fun part though. Agents MUST buy their phones from VZW or an approved verizon wireless vendor to be able to FRU the phone...meaning vzw will only honor the warranty themselves on one of those phones. So...they set dealers up to puchase the phones from only certain channels and charge them MORE for alot of phones then they themselves will sell the phone for at full retail to the consumer. Get you some of that!
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SmartCell said:
Always remember: YOU PAY FOR WHAT YOU GET
pshh! free phones... 😡
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I wish Phone Scoop could do sticky posts. This is good stuff.
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