Shop Talk
CptFarlow's analogy is AWESOME!!
The cable service/comes with what size TV analogy is very good. Wireless companies did themselves a disfavor with handset discounts. Created a monster of a consumer. "I've never paid for a phone" mentality is not only going drain the ARPUs but I see big litigations steming from that.
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these phones used to cost a lot, and carriers got spoiled on 2 year contracts, these phones cost less and less and companies are still doing it and driving up the artificial retail price instead and will continue, so at this rate, next year phones will cost $50 for the companies to buy and they will be sold for $50 with a 2 year contract. Which i do not need to tell you is not a good deal. Sure when camera phones cost $500 it was reasonable but now that they cost $100-179 it is horribly phony to jack up the "retail" cost to $299.95.
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what are you talking about? how about the fact that for that phone to be in a warehouse, we have to pay for it, then for someone to process it we have to pay for it, then for me to sell it we have to pay... well me, then how about the phone itself? taxes for the cost of inventory, as far as property tax. Then we all dislike them, but the big wigs who manage me, they get paid from that phone being sold, rent for the building, utilities so I can type this stupid message on this website from our computer using electricity, the toilet I do my business on using water... so we could probably get by selling a phone that we buy for $50 for $51 and still make costs right?
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heck yes! Greed, it's what drives us to make more money and spend less money at the same time. GIVE ME HIGHER WAGES AND FREE RIDES AND I WILL BE HAPPY!!! I shopped at Wal mart yesterday and I felt icky inside. but I did buy some water-proof pants for $7!
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not yet, the current meal worm market in the united states produces lower cost "beef"
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The analogy is older than dirt and has been used on the phones ever since I started working in the wireless industry and it is accurate. In the beginning, cable companies did sell TVs, because there were very few cable ready sets and the industry was hesitant to make the switch for this medium.
As for our conspiracy theorist, I hate to burst your bubble Alejandro, but cellular carriers DO NOT get that much of a break on phones at all. Only if they buy in bulk and even then they are only saving approx. $10-$40 on each unit, if that.
When considering that it costs the company on average $300-$700 per person to aquire them as a cusotomer. No profit is derived from any account unless they are with that carrier for more than 2 years.
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As for our conspiracy theorist, I hate to burst your bubble Alejandro, but cellular carriers DO NOT get that much of a break on phones at all. Only if they buy in bulk and even then they are only saving approx. $10-$40 on each unit, if that.
When considering that it costs the company on average $300-$700 per person to aquire them as a cusotomer. No profit is derived from any account unless they are with that carrier for more than 2 years.
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thanks for not reading my post at all. Besides the fact that i said nothing about bulk prices so i do not know where that came from. I am talking about the decrease in costs to purchase a phone period over time and the rip-off that is artificial inflation in the price of a phone as in a phone purchased for $207 being sold for 299.95 and a phone purchased for 170 being sold for 349.95. and in case you dont understand those numbers a phone purchased for 189 sold for 249.95. Since i am the one who actually purchases them i do not see why i could be a theorist. Lastly you say "cost to acquire" i have no idea where a cheerleader like you gets that number but if you are factoring in advertising it is nobodies fault that a company spends money to m...
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