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Hey Rich....

spowers

Jun 22, 2005, 12:20 PM
how do third party sites offer such huge discounts on phones (i.e. wirefly)...just wondering how they cover the rebates they offer and how they make profit...
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swamp_donkey

Jun 22, 2005, 12:31 PM
Refurbished phones and factory rejects. 'Nuff said.
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speedywalk

Jun 22, 2005, 1:09 PM
Most are offered an activation bounty of X dollars per rate plan and features... Most often the third parties will sacrifice the cost on a phone to get the activation bounty. If you are referring to the websites...well....that's e-commerce: so salespeople to pay, no storefront to maintain, no utility payments.....you get the idea.

It's all a balance of cost-profit ratios at work. Most are not referbished or "factory rejects," as most states require this to be advertised if they are. They are bought at wholesale prices from different vendors and what not. Fun game to try to play though!

Speedywalk
"It ain't broke, it just needs duct tape!"
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spowers

Jun 22, 2005, 1:26 PM
yeah that whats i thought...i had three customers call in yesterday looking for me to get them free razrs like they saw on wirefly...needed something to tell them other then a flat no.......one man show today???
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speedywalk

Jun 22, 2005, 1:46 PM
spowers said:
yeah that whats i thought...i had three customers call in yesterday looking for me to get them free razrs like they saw on wirefly...needed something to tell them other then a flat no.......one man show today???

I'm having a hard time motivating the cast to learn their lines today....doubtful. 😛

Speedywalk
"It ain't broke, it just needs duct tape!"
...
Rich Brome

Jun 22, 2005, 1:57 PM
Simple - they apply their commission directly to the discounts and rebates. As an online business, their costs are much lower, so they don't need to keep as much of commissions to be profitable.
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speedywalk

Jun 22, 2005, 2:19 PM
Rich Brome said:
Simple - they apply their commission directly to the discounts and rebates. As an online business, their costs are much lower, so they don't need to keep as much of commissions to be profitable.

Precisely! The Wireless Oracle has spoken. 😛

Speedywalk
"It ain't broke, it just needs duct tape!"
...
big chief

Jun 22, 2005, 3:10 PM
hey yo
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