I am planning on buying me a new cell phone, the total cost of the cell phone is between $ 200-$ 300 dollars but they told me if I sign a contract, it will on be just for 1 cent
Can anyone explain to me how or why is high paiding cell phone only cheaper when signing a contract?
Best answer:
Answer by J
because they figure they will get the rest of the money back from you though the contract
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Because if you sign a contract they can guarantee that they will be getting money from you on a regular basis.
ReplyDeleteIts an incentive to sign. The phone company wants your business (and money).
ReplyDeleteThe phone company wants you to sign the contract saying, I will pay you lots more money in phone bills than the phone will ever cost.
ReplyDeleteBecause when you sign a contract they give you a discount on the phone. They give you this discount because they will get that money back from you for that phone over the contract period.
ReplyDeletethere are disadvantages to signing contracts, once u sign them u have to wait 2 year unless u want to cancel it but ull have to pay around 150 dolars
ReplyDeletewell, believe it or not, all major cell phone carriers are very much like that. basically, the cell phone carriers WANT you to sign the contract, making anything seem better like a sale or say the cheap cell phone thats normally x amount cheaper, its a sales gimmic. Say you purchased the phone without the contract, say your with one carrier and your previous contract is no longer eligible because you've paid it up in full or are a pay as you go user and are now just paying the service fees to use the phone. without that contract, you could virtually take your cell phone, your plan, and whatever else to another cell phone company. having you sign the contract basically says that your stuck with that cell phone company unless you pay the contracted agreement fee cancelling your contract, or stay with them eliminating the competition.
ReplyDeleteits a cycle of profits. say the cell phone you intended to purchase was the i-phone, without a contract they cant make you add more additions to your plan, like a texting plan or a multi-media plan. because with a contract, im not sure how its run where you are, but the i-phone under contract is basically forcing the person to have a multi-media package thats a great deal extra sometimes. which is great for the i-phone but bad on your wallet. but if your in the store, or are online looking at these phones, and wanting to purchase these phones, they dont tell you that the contract states you MUST have a multi-media package in order to keep this phone usable, until after you've made the purchase and have signed the contract.
The contract locks you into a service contract for a period of years. The monthly fee you pay each month over those years more than pays for the service and pays for the phone they gave you and affords the carrier a healthy profit.
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