Saturday, April 17, 2010

Why Internet Mobile Phone Deals Are Cheaper Than Shop Offers


Mobile phone have deals are changing from one day to the next. Phone retailers constantly change and tinker with what they are offering to try and attract the maximum amount of customers to their shop or website. One of the major changes in recent years, has been the introduction of web exclusive deals and contract plans that are being offered by pretty much all retailers.

In order to carry out some research, I recently when into a well known mobile phone retailer in the UK. I was pretending to be interested in signing up for a new 18 month contract. As we were discussing various handsets, networks, plans and mix and match deals I inquired about what free gifts they would offer me. He responded, by asking me what I mean. I told him that every time I go on line, I see mobile phone retailers offering a range of free gift with their phones.

He told me that they can't match these deals, that those were exclusive internet offers only. He then told me me, that I could have a free mobile phone car kit, I told him no thanks. From knowing the industry fairly well, I have come across this a number of times. You can find the exact same deal on line that you can get in the shop, but for far less. In most cases you can save £5-£10 per month. Or if the monthly charge is the same, the online deal will include, say 200 more free minutes and text messages. Furthermore, free internet browsing seems to have become pretty standard on internet deals. When I looked into this on the high street, they tried to charge me £5 a month for this service.

You might think this is strange, but it is not really. Today, about 80% of mobile phone retailers on the internet are now exclusively we based. Over the past few years, they have sold off their shops and moved their entire operations on line. This makes sense, when you consider how the internet work. By owning a large warehouse, you can store, tens of thousands of mobile phone handsets, by all the various manufacturers. This warehouse can then service the entire country, compare to a shop, which is tiny and will only have a limited target market in that town or city. The warehouse rental charges are also more appealing. They are able can get a massive industrial unit for a fraction of the price of a small high street retail unit.

What this means for the companies which operate both on line and on the high street is that they need to match the cheaper offer of their web exclusive competitors. As a result, for most of the time, they will have one price for the bricks and mortar shop and one for the virtual shop.

Article Source: http://ezinearticles.com/

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