Why no "Full Retail" deals?
I was hoping to find a Black Friday or Cyber Monday deal on a Samsung Galaxy S5, but the only ones out there are with a new contract. I'm grandfathered in with unlimited data, so I'm not touching my contract or my upgrade. My next phone will be full retail. All S5's that I can find for Verizon are still $599 or higher. Why no holliday discount? ☹️
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Because they paid that $599 price tag to get the phone, so selling the phone at cost is a loss - less than cost is even more of a loss. Would you sell a product for less than cost without expecting to make back that money?
This is a three-year old article written by some of the people who once frequented this site. The information may be a little dated, but the information pertaining to full retail and two year contracts is still the same.
http://www.phonecan.com/index.php/the-basics-underst ... »
This is a three-year old article written by some of the people who once frequented this site. The information may be a little dated, but the information pertaining to full retail and two year contracts is still the same.
http://www.phonecan.com/index.php/the-basics-underst ... »
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Thanks for the info, epik. I assumed the retailers had gotten the phones for less than $599. I mean, as you pointed out, why would they sell them at cost? I can buy an S5 from Verizon for that price any time. I was hoping they had a little wiggle room and would drop the price for Black Friday or Cyber Monday. It would generate store traffic, and probably lead to more sales of their highest profit items...accessories.
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There is a good point there about the accessories, however, in my experience those who buy full price phones generally will get their accessories elsewhere for as little as possible. Accessories are the operational income of carriers, especially when two year contracts (full subsidies) force profits to happen 18 months into the future.
If any wiggle room exists, it may be in the order of $20 or less. Still, $20 on a $600 item when all other costs and expenses are considered does not make much profit. Taking $20 off, assuming there was a $20 wiggle room, would create the same result for the company.
Since writing that article, much has changed, but the fundamentals haven't. If anything, you're more obvious now.
If any wiggle room exists, it may be in the order of $20 or less. Still, $20 on a $600 item when all other costs and expenses are considered does not make much profit. Taking $20 off, assuming there was a $20 wiggle room, would create the same result for the company.
Since writing that article, much has changed, but the fundamentals haven't. If anything, you're more obvious now.
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