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Can anyone explain this pricing disparity?

athens

May 9, 2008, 4:16 PM
How does US Cellular market phones specd for its service by Motorola at one price on its Website and at a significantly lower price through Motorola's website? That's supposed to represent customer loyalty?

BTW I entered my Chicago area zip code for both websites to obtain local promotions.

http://www7-mobilephoneplans.motorola.com/product/br ... »

E.G.

Motorola V3m USCC w.s. Best Price (before EE unlimited plan rebate) = $79.95 (Phone price is $249.95 less $170 rebates)

Motorola V3m Motorola Store w.s. (before EE unlimited plan rebate) = FREE (Phone price is $124.99 less $125 USCC instant rebate)

Motorola Z6m USCC w.s. Best Price (before EE unlimited plan rebate) = $119.95 (Phone price is $31...
(continues)
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athens

May 9, 2008, 4:35 PM
In answering part of my question I called the Motorola store to get some clarification. They apparently are acting as limited authorized agents for all these competing carriers, with the limitation that they only offer the products to prospective customers who are new to the carrier (or have been without that carrier's service for at least 6 mos.)

As to the significant disparity in the MSRPs they were stunned and could offer no explanation.

Can anyone venture to guess what would explain a 69% increase in "purported" MSRP?? Does anyone still believe that USCC or any other carrier pays anywhere near the claimed MSRPs for the phones? I'm confident USSC buys vastly more volume in its specd phones than does the Motorola Store.
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athens

May 9, 2008, 7:16 PM
Further investigation shows that the authorized agent which sells with plans for the Motorola Online Store is LetsTalk.

Anyone on this forum ever deal with LetsTalk? They sure do a lot of advertising.

Motorola, which is weakening by the day, must sure carry a lot of weight with the carriers to be granted rights by those same carriers to directly offer very competitive prices and plans for all the competing carriers for which they make handsets.
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Masked Avenger

May 9, 2008, 11:08 PM
Although Moto is on the skids, they are still a pretty popular manufacturer amongst consumers. Don't quote me, but, I think the prices we pay are set based on the contract we have with Motorola. What a new customer pays in store is going to vary for a few reasons, one of them being logistical. It flat out costs us money to get the phones, so even if Moto (or lets talk) is offering them for free after all the rebates, we may not have the same buying power as the authorized agent. I'm not in sales, so I can't comment on commissions, but maybe this plays a role as well. As far as the difference in MSRP, we may have a set MSRP per the contract, where as the manufacturer is able to change theirs because, well, they make it.
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