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How do phone shops make money? |
nixin
Joined: Oct 08, 2003
Posts: 244
From: Birmingham
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how do places like the link or car phone warehouse make money from selling pay monthly stuff?
e.g a buy a free hand set at 25 pounds a month that money gets paid to orange
whats in it for CPW? how much money if any do they get for the free hand sets?
i have pondered this for some time maybe now some one here will tell me thank you.
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Hampusd
Joined: Jan 12, 2002
Posts: 120
From: Sweden
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Orange etc. pays the rest off the phone.
Like is the phones price 50£ without contract. And 25£ with contract at orange then orange pays the shop the 25£ thats missing.
Sorry for my bad english but i hope you understand how it works.
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[ This Message was edited by: Hampusd on 2003-10-19 15:21 ] |
impy78
Joined: Aug 17, 2003
Posts: 207
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They get a tonne load. Although different companies give different amounts of subsidisation.
T-Mobile, pays out the most money to dealers on new handsets, or at least that was the case a few months ago. They're still a bunch of robbing charlatans with imbecilic customer service advisors and shite hold music.
But yes, the handsets belong to the service providers, but CPW get comission on the monthly contracts. And there is the small matter of overpriced accessories and payg phones. They must be raking it in. |
nixin
Joined: Oct 08, 2003
Posts: 244
From: Birmingham
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is it once off commission or commission on a regularly basisi after they secure a pay monthly user? |
vinnieza
Joined: Sep 25, 2003
Posts: > 500
From: UK or was it Pluto?
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They might buy the phone and contract and sell it to the buyer and because the phones on that SP then that SP sells the phone cheaper to carphone warehouse. i.e
carphonewarehouse buy contracted phone off orange (and because they are promoting phone for orange and sellin them, orange sell the phones cheaper to carphonewarhouse).
or
carphonewarhouse buy just the phone off orange for that price and carphone warhouse sell it, and sell it with an orange contract.
* No questions asked * |
t-lime
Joined: Oct 18, 2003
Posts: 3
From: Cambridgeshire, UK
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Quote:
| On 2003-10-19 16:14:18, nixin wrote:
how do places like the link or car phone warehouse make money from selling pay monthly stuff? |
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I've just upgraded to a free T610, and Phones4U appeared to be making their money by trying to force insurrance and HomeCall on me. |
impy78
Joined: Aug 17, 2003
Posts: 207
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I think that the cpw and the like get a one off payment, but they will be getting so many one off payments, that this should be quite substantial, and as is mentioned above, then they make extra money on insurance and on landline services and isp sales too. |
fatreg
Joined: Jul 26, 2003
Posts: > 500
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All shops get some kind of margin for selling a handset,
i know in orange retail where i work that we make margin on any handset we sell,
so the higher there tarrif the more margin!? so margin means money means buyong more phones for the shop means sell more means make more money!!
simple really!
i also make commission out of it too!!
lol
fatreg
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taboo
Joined: Jul 21, 2003
Posts: 32
From: Sweden
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ive got a close friend who owns a phone shop....he told me the provider pays out like 150 EUR for each card he sells (vodafone, telia, djuice etc etc)
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Deanlambert
Joined: Sep 10, 2003
Posts: 466
From: East Yorkshire
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So how does it work with pre pay phones? I've noticed that the price varies from shop to shop. But say a shop sells a 02 pre pay phone for 50 quid, the same phone could be on the 02 website for 90 quid.
This message was posted from a T300 |
Linkinpark17UK
Joined: Jan 27, 2002
Posts: 372
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In my experience phone shops give you a crap deal and you are forced to ring a premium rate number to complian to get it sorted.
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axxxr
Joined: Mar 21, 2003
Posts: > 500
From: Londinium
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Places like the carphonewarehouse and link phones4u etc make upto £300 profit just by selling a free handset on contract!!..
[addsig] |
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Posted: 2003-10-19 16:14
