Monday, January 16, 2006

True Cost of Cellphones

I thought I would start off my blog with one of the most common questions I get. I probably get it once a day, and each day I seriously thinkg about whether it's worth it to explain or not explain to a customer. It usually isn't. So, here it is:

"How come these phones cost so much without a contract?"

And usually, this question is followed by statements such as:
"That's ridiculous!"
"That's a rip off!"
"Cell phones don't really cost that much!"
"They get ya coming and going!"

Well folks here it is: Yes, they really do cost that much! Think about it. You have a portable device that you can use almost anywhere and can "magically" makes calls across the country, or even around the world. Not only that, they store as much information as 1 gigabyte. Phones now have mp3 players, internet access, cameras, etc. How much does the Ipod shuffle go for? $150. Cell phones now can store as much mp3s...How much are low end digital cameras nowadays? $50 - $100. You have cell phones with 1.3-2.0 megapixel capability and video features. The only other devices that have portable internet capability are pda's and laptops. How much do those go for? Probably starting at least $300. So, why is it an unimaginable thing that a device that packs all of that, plus makes calls across the country start at around $300? And I haven't even talked about the ability to play games, download music, or even the research that went into developing these devices. Okay so you don't care about all the bells and whistles. Say you just want a phone. How much does your home cordless phone cost which only has about a 100 ft range and doesn't store phone numbers? $50 - $150. What does a basic cell phone cost without a contract? $150. That's for a phone you can take almost anywhere withyou to make a call, store numbers, calling features(caller id, call forwarding, 3-way calling), etc. Is it really ridiculous?

But you know what? It may or may not be the consumers fault for their perceived value of cell phones. Through advertising and fierce competition in the industry, people are almost trained to think that cell phones cost next to nothing. It may also be the sales reps fault too for not fully disclosing everything at the point of sale. Also, a lot of times in my experience, customers don't pay attention or forget everything explained to them. So, if you are a consumer about to sign a one or two your cell phone contract, please pay attention to what your cell phone guy is saying and please ask questions about anything you don't understand. Yes, cell phones really do cost that much, so take care of them and place more value on your cell phone as a part of your life. So, if you still think cell phones are not worth that much to you remember to ask yourself this: "What would we do without them?" -The Cell Phone Guy

1 Comments:

Blogger Vance Decker said...

Your post makes a lot claims, few of which make sense, and none of which have any supporting evidence, other than your opinion.

1. "they really do cost that much!"
no, they really don't cost that much, the 'suggested retail price' is completely fabricated nonsense...

2. Cell phone companies have made sure that you can't actually buy any cool looking phones that only have basic service, they control what phones are available...

3. Lastly, most of the time, the issue is not with not reading your contract, the issue is with erroneous charges, mysterious fees never mentioned in your contract, & overall lack of consequences for lying to consumers about service plans.

So before you go around spreading more of your folk wisdom, why don't you sit down and think things through a little more deeply.

4:30 PM  

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