How Much Does FREE Cost? Simple Question right?

September 1st, 2015

Be careful when your service provider tells you that something is free. And read your contract!

 

Today’s post is from the SafeSourcing Archive

The byline to this post would seem simple but the number of large companies that are taken in by it is staggering.

My brother dropped his phone and to no surprise the screen was cracked. He took it into his wireless provider and without insurance he would have to buy a new phone. A new phone? That sounds great! Right? Well he did not have an upgrade available and without insurance he would have to buy the phone at “full retail price”.

The phone that cost him ZERO dollars when he signed a two-year contract was $349.99! I understand that the contract gets you a better deal, but how do wireless providers make a profit when they are just “giving away” phones.

Wireless providers subsidize the cost of your phone into your wireless plan. They have to pay the manufacturer for these phones, but take such a large hit initially in the contract. It takes wireless providers an average of at least six months to begin making a profit on your wireless contract. Makes you wonder how low your service contract could be a month if you paid “full retail” price for your phone.

Many companies have used the word ‘FREE’ to sell a product or service, but are they really free? If you did not accept the free or significantly low cost coffee maker for the office would the year supply of coffee be cheaper? There is a cost for free and that cost usually falls back on the customer or consumer.

SafeSourcing, Inc. has the knowledge and expertise to eliminate the cost of ‘free’ from your service related plans.  If you’d like more information on how avoid the free pitfall, please contact a SafeSourcing customer services representative.

Be careful out there or you might just get what you have not asked for.

We look forward to hearing from you.

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