Cellphone Pricing
I think everyone knows that cellphone and telco pricing is crazy. Here’s a good story of it being so.
I recently broke my phone — I “dropped” it and it broke in half. I’ve only had my phone for about 6 months, so I don’t qualify for any “upgrade” promotions. And, I don’t have the $5/month insurance. Consequently, I’ll have to buy a new phone.
Buying a phone at “retail price” (without discounters for new sign-up promotions) is quite expensive: $100-500. And the low end is the crap-phone that doesn’t have any features.
Pay More and Lock Yourself in Firmer!
My carrier offered a “deal” for the same model phone I have (a Motorola v265) if extended my contract. The price: $219…plus locking myself for another six months.
So, this all got me thinking, “how can I get me one of those RAZRs?” If I paid “retail price,” it’d be about $420. I have a friend in the wireless business, and he could get me one for around $300.
If I could get a promotional rate, I could probably get one for free.
Goodbye…?
Which begs the question, how much does it cost to get out of my contract? It’s a mere $175.
The equation is then: $175 for a great phone, or $219 for the same phone I had…. I mean…don’t they have people working on preventing this kind of situation? Or, at least, some data-analysis scripts? How do you price yourself into that kind of absurd, loosing position?
Of course, once we get into the “cancel dance” with them, who knows what they’ll throw at me. The exit-price is set pretty low for now, though: $175. I don’t mind “spending” all the hassle time just to stick it to a telco: as a consumer who’s paid years and years of weird line-item charges that make no sense, gotten spotty wireless service, and crippled phones, there’s no love lost in that relationship.
