Why you're getting a Droid in my store

[chunky]

I was browsing in a shop today and a person asked a sales rep for an iphone 4.

The sales rep said the tariff's are high with that one, how about one of these HTC's !

I immediately though of this thread !

Rolls eyes..........................

 

[OJsakila]

Commission is fine. The harder you work, the more you make. It's the Invisable Hand Therory. It is the the very essence of Capitalism.

But if youre an uninformed sheep with money burning a hole in your pocket, then it is quite easy to get taken advantage of.. It's the nature of the beast...

Buyer beware. You are right that the sale is manipulated to the salesman's prefrence..which valadates my "boob" comments..lol

It is a shame, no doubt. I wonder why verizon has done this..?

Apple would be to blame on this one. It's the cost of the device + (I don't know this for a fact but suspect that) Apple is not paying as much to Verizon for each device sold (or Verizon is paying Apple more in order to carry the device...however the relationship works, it's farking expensive).

Verizon doesn't make money on the device, the stores don't make money on the device. It trickles down and the sales rep gets $4 for a new line/data/text/hour in the store with a clueless customer/etc/etc/etc...

BTW can I officially change that to Former Verizon Rep? Jumped the gun a bit with the ole name it seems...

I'm not sure if I'm with you on this crazy outlandash statement..lol..

Why in the world would they sell it then? For only the wireless plan? I guess that's possible but I just find that strange. Is not "selling the plan" not the the same as "making money off the phone?" I mean, Verizon is making money here, right?

And inthere lies the problem, I suspect. The salesman does not make money off the wireless plan, right? Only the initial sale of the device?

Or do I just have all this wrong..lol..

 

[iCrank]

I'm not sure if I'm with you on this crazy outlandash statement..lol..

Why in the world would they sell it then? For only the wireless plan? I guess that's possible but I just find that strange. Is not "selling the plan" not the the same as "making money off the phone?" I mean, Verizon is making money here, right?

And inthere lies the problem, I suspect. The salesman does not make money off the wireless plan, right? Only the initial sale of the device?

Or do I just have all this wrong..lol..

I agree with you. Someone is making the money here. The sales rep may not see it but some big wig is sitting in his/her corporate office laughing down at us.

 

[TheVerizonRep]

Actually our commission was based SOLELY on the plan selected. I could sell a free phone (a Motorola Citrus for instance) and if the plan was a primary line upgrade with new data I'd make $16...the same amount I'd make if I sold a $300 Samsung Charge. Verizon pays the franchises for selling or extending 2 year contracts. The franchises buy the phones at retail. And whatever Verizon pays us + whatever amount of cash we got for the phone is our revenue. The iPhone leaves such small margins that there is little left over when a sale is complete. The retail on an iPhone $100 to $200 the more than the most expensive Android. Therefore I suspect that whatever Verizon was paying us was barely enough to cover costs and scrape out a profit. I believe there are probably other deals and incentives between Verizon and the manufacturers that they may not receive from Apple, but I don't know that for a fact.

And yes there's probably some fat @$$ in a corporate office somewhere wiping bacon grease off his chin with hundred dollar bills...

 

[CyberSpider11]

Androids do have some special features i do agree.iPhone not less in comparison

 

[psvensson]

Very interesting. I wonder if this is some oversight on the part of Verizon execs or if it's a conscious policy.

 

[newjacksm]

Coming from an HTC Incredible I have to tell you there are a lot of little things I really REALLY do miss from the HTC Sense and to be honest it seemed a little bit faster than the iPhone4...

What I don't miss is the 8mp camera that took horrible pictures, the phone that crashed on me all the time and for no reason slowed down out of no where and I had to reboot it 2-4 times a day. Battery would last me 4-6 hours and I did everything everyone said.

I even rooted the phone to make the battery last which helped a lot.

I love the iPhone but it's not as amazing as I thought it was going to be. What is great is the reliability you should expect from any phone. I think I had to reboot it once because it got a little buggy on me. I love the quality of the pictures and I seem to get better service and phone quality.. Overall better built phone..

 

[MacLovin]

I'm not sure if I'm with you on this crazy outlandash statement..lol..

Why in the world would they sell it then? For only the wireless plan? I guess that's possible but I just find that strange. Is not "selling the plan" not the the same as "making money off the phone?" I mean, Verizon is making money here, right?

And inthere lies the problem, I suspect. The salesman does not make money off the wireless plan, right? Only the initial sale of the device?

Or do I just have all this wrong..lol..

It's simple - there is demand for the iPhone. They sell it because they would lose sales if they did not carry the iPhone - in fact, they did lose many sales to AT&T when they chose not to carry it initially.

They do indeed lose more money initially on the iPhone than any other phone so they would much rather people be sold a different device.

Since the business model for post-paid contracted wireless services in the United States is the "give away the razor to sell the blades" model, I would equate it to an analogy that since the blades are the same and sell for the same price regardless of which razor you give away, I would much rather give away a razor that costs me $.50 than a similar razor that costs me $2.00.

 

[tlbaker]

Actually our commission was based SOLELY on the plan selected. I could sell a free phone (a Motorola Citrus for instance) and if the plan was a primary line upgrade with new data I'd make $16...the same amount I'd make if I sold a $300 Samsung Charge. Verizon pays the franchises for selling or extending 2 year contracts. The franchises buy the phones at retail. And whatever Verizon pays us + whatever amount of cash we got for the phone is our revenue. The iPhone leaves such small margins that there is little left over when a sale is complete. The retail on an iPhone $100 to $200 the more than the most expensive Android. Therefore I suspect that whatever Verizon was paying us was barely enough to cover costs and scrape out a profit. I believe there are probably other deals and incentives between Verizon and the manufacturers that they may not receive from Apple, but I don't know that for a fact.

And yes there's probably some fat @$$ in a corporate office somewhere wiping bacon grease off his chin with hundred dollar bills...

The wireless companies make $$$ off of the monthly wireless plans rather than the devices they sell.

Sent from my Verizon Black 64GB iPad 2 w IOS 5.0.1 Update using iPF.net

 

[tlbaker]

Actually our commission was based SOLELY on the plan selected. I could sell a free phone (a Motorola Citrus for instance) and if the plan was a primary line upgrade with new data I'd make $16...the same amount I'd make if I sold a $300 Samsung Charge. Verizon pays the franchises for selling or extending 2 year contracts. The franchises buy the phones at retail. And whatever Verizon pays us + whatever amount of cash we got for the phone is our revenue. The iPhone leaves such small margins that there is little left over when a sale is complete. The retail on an iPhone $100 to $200 the more than the most expensive Android. Therefore I suspect that whatever Verizon was paying us was barely enough to cover costs and scrape out a profit. I believe there are probably other deals and incentives between Verizon and the manufacturers that they may not receive from Apple, but I don't know that for a fact.

And yes there's probably some fat @$$ in a corporate office somewhere wiping bacon grease off his chin with hundred dollar bills...

Oh and BTW, I was silently cracking up on the way to work looking at the peeps lined up at the Verizon store to get their new droid phones. . Mostly men.

Sent from my Verizon Black 64GB iPad 2 w IOS 5.0.1 Update using iPF.net