Bill to Challenge Mobile Phone Contracts
I see two things happening if this passes
One will be the emergence of basic voice plans for people who do not want to sign up for a contract. In other words, no unlimited plans and no mobile to mobile or free nights and weekends. AT&T already offers pick your plans, so I doubt they will even change anything.
Also, it says they would have to pay the difference in cost from what they paid to the cost of the phone. Cell phones currently have a meager 25% markup on average. Most industries have a minimum of a 33% markup, so the likely answer would be that the Market value of the phones will go up in conjunction with this bill.
I'm guessing it will be the indirects that ultimately pay the price.
Also, it says they would have to pay the difference in cost from what they paid to the cost of the phone. Cell phones currently have a meager 25% markup on average. Most industries have a minimum of a 33% markup, so the likely answer would be that the Market value of the phones will go up in conjunction with this bill.
I'm guessing it will be the indirects that ultimately pay the price.
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25% markup? What are you smoking? Suggested retail is often LESS than what an authorized dealer pays for a phone. At most, there is a $20-30 price difference between cost & suggest retail.
The change will not be reflected in rate plans, rather phone offerings. Once every customer has to fork over at the POP what a phone is actually worth, we'll see real change. If somehow contracts were legislated away, the consumer would be the loser...as there would be no discounted phones.
The thing is, a person can go to a T-Mobile outlet right now, pay full retail for a phone, and get the exact same plan that a contract customer gets, save the unl plan, without a contract.
The change will not be reflected in rate plans, rather phone offerings. Once every customer has to fork over at the POP what a phone is actually worth, we'll see real change. If somehow contracts were legislated away, the consumer would be the loser...as there would be no discounted phones.
The thing is, a person can go to a T-Mobile outlet right now, pay full retail for a phone, and get the exact same plan that a contract customer gets, save the unl plan, without a contract.
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25% markup? What are you smoking? Suggested retail is often LESS than what an authorized dealer pays for a phone. At most, there is a $20-30 price difference between cost & suggest retail.
I see an average of $30-50. 25% of 200 = %50. Thus, in my experience, there is a 25% markup. The percentage goes lower on higher end devices, and higher on lower end devices. I've never seen an MSRP on a phone, so I wouldn't know what the suggested retail price would be.
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Crapbag said:25% markup? What are you smoking? Suggested retail is often LESS than what an authorized dealer pays for a phone. At most, there is a $20-30 price difference between cost & suggest retail.
I see an average of $30-50. 25% of 200 = %50. Thus, in my experience, there is a 25% markup. The percentage goes lower on higher end devices, and higher on lower end devices. I've never seen an MSRP on a phone, so I wouldn't know what the suggested retail price would be.
pwned 😉
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If MSRP is less than your wholesale cost, you're getting screwed over big time. For example, I pay $65 wholesale to get a Nokia 2610 in stock. The MRSP on wireless.att.com is $160. Nokia 6085 wholesale is $123 and lists for $199.
Are you comparing the subsidized price to the wholesale price?
Are you comparing the subsidized price to the wholesale price?
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That's the cost after they add in the per unit shipping and handling fee. $10 per phone despite how many you order.
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