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Help [Q]Price Differences?

marc12868

marc12868

Android Expert
This is going to be a totally random and off topic question for the most part, but I am wondering... Why is it that Sprint sells the same exact phones that VM has for $200ish more? For example the lg rumor touch is $99 thru VM, but is $279 thru sprint... Another the Lg Optimus V is $129 thru VM, but $300 thru sprint... This is comparing them off contract... Why is it that VM can sell their phones for $200 cheaper?
 
marc12868 said:
This is going to be a totally random and off topic question for the most part, but I am wondering... Why is it that Sprint sells the same exact phones that VM has for $200ish more? For example the lg rumor touch is $99 thru VM, but is $279 thru sprint... Another the Lg Optimus V is $129 thru VM, but $300 thru sprint... This is comparing them off contract... Why is it that VM can sell their phones for $200 cheaper?
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the big carriers post a very high price to deter you from buying the phone itself.

they figure that the average person will see a phone listed for 500$ off contract but only 99$ or sometimes free if they sign up for a two year agreement.

its all about the service contracts, thats where the real money is. the phones are valuable but expendable. they will replace phones to keep customers. the amount you pay over a 2 year contract can be anywhere from 1k to 5k. locking you in to that is worth more to them than whatever it costs to give you the phone cheap.

at least thats how I see it.

prepaid carriers like VM operate as seperate companies, and get the "lesser" phones, usually features phones and low end smartphones. and can sell them at closer to what they are actually worth.
 
shmackshmack said:
the big carriers post a very high price to deter you from buying the phone itself.

they figure that the average person will see a phone listed for 500$ off contract but only 99$ or sometimes free if they sign up for a two year agreement.

its all about the service contracts, thats where the real money is. the phones are valuable but expendable. they will replace phones to keep customers. the amount you pay over a 2 year contract can be anywhere from 1k to 5k. locking you in to that is worth more to them than whatever it costs to give you the phone cheap.

at least thats how I see it.

prepaid carriers like VM operate as seperate companies, and get the "lesser" phones, usually features phones and low end smartphones. and can sell them at closer to what they are actually worth.
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Hmmm i actually didn't think about that... It actually makes sense that the larger companies would overcharge... Its just kinda funny looking at the sprint website and see the rumor touch list for almost $300 off contract... Back when it was the best VM phone it was only $150 thru VM... Another reason to be glad to be with a no contract company! :D Its always nice to get other people's points of views :).

Edit: also now that I think about it the $300 price tag on the MT is kinda a ripoff... And if sprint or another company had this specific phone VM might have sold it for cheaper... :/
 
There's a whole lot of science that goes into setting prices for products (and the big companies can afford to do this kind of stuff). Price anchoring psychology gives the customer the perception that something is more valuable simply by the initial price set. Studies have been done to show exact bottles of wine with different prices give the drinker perception of better tasting wine. Also most of the phones aren't sold at those high prices, usually they have a discount, that makes the customer feel like they're getting a bargain.
 
shmackshmack said:
they figure that the average person will see a phone listed for 500$ off contract but only 99$ or sometimes free if they sign up for a two year agreement.

its all about the service contracts, thats where the real money is. the phones are valuable but expendable. they will replace phones to keep customers. the amount you pay over a 2 year contract can be anywhere from 1k to 5k. locking you in to that is worth more to them than whatever it costs to give you the phone cheap.
.
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Whyzor said:
There's a whole lot of science that goes into setting prices for products (and the big companies can afford to do this kind of stuff). Price anchoring psychology gives the customer the perception that something is more valuable simply by the initial price set... Also most of the phones aren't sold at those high prices, usually they have a discount, that makes the customer feel like they're getting a bargain.
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You guys hit it on the nose. Both related, but slightly different reasons why this happens. These companies weigh a lot of this related stuff and then figure it out, but those seem to be a couple of the biggest reasons phones are priced the way they are.
 
I think setting the Triumph at 300 off contract is actually where some of the other "High-End" phones would be priced if every phone was sold off contract. I always thought it was mostly fair for the hardware inside. maybe 230 would be more likely but VM needs to recoup costs in manufacturing and design (what a joke)

it would have been so much easier if VM just ported a high end device from sprint, like the Epic or Evo, rather than commission their own phone with motorola/huawei.
 
shmackshmack said:
I think setting the Triumph at 300 off contract is actually where some of the other "High-End" phones would be priced if every phone was sold off contract. I always thought it was mostly fair for the hardware inside. maybe 230 would be more likely but VM needs to recoup costs in manufacturing and design (what a joke)

it would have been so much easier if VM just ported a high end device from sprint, like the Epic or Evo, rather than commission their own phone with motorola/huawei.
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I know! And that's what VM has done before, but know they starting to make VM only phones... Or want us to think they are... You would think that VM is technically sprint they would use more of sprint's phones instead of going and getting other phones...
 
Most people from the big carriers would transfer over to Virgin Mobile if they offered the latest and greatest phones..really doubt they would want people paying less for service.
 
Yeah, all of that makes sense but however logical it is to have our phone, do any of you get an "OH your on PREPAID" and a funny look going with it when you say you have Virgin Mobile? I know I've gotten that look from co workers with their iphones and other on contract phones. Shoot I used to have a blackberry on sprint for THREE years and feel like a doofus for paying as much as I used to for that much time.
 
If people really form opinions about others based on what kind of phone carrier they have, car they drive, brands of clothes they wear...etc, it is truely sad.
 
Whyzor said:
If people really form opinions about others based on what kind of phone carrier they have, car they drive, brands of clothes they wear...etc, it is truely sad.
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I know it is kind of stupid... Especially people who own overpriced contract phones like iPhones and think they are better than everyone...
 
Yep, I know exactly what you mean..everyone hates on me for having Virgin Mobile but then I ask them how much their bill is every month..they say $120 and when I tell them I only pay $25 they immediately get quiet. The look on their faces is priceless LOL
 
marc12868 said:
I know it is kind of stupid... Especially people who own overpriced contract phones like iPhones and think they are better than everyone...
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just the other day i was out with a group of hipsters and i was the only person with a droid. (running miui and two home setups, Ultimate iphone theme and a good Motorola Atrix theme, the atrix theme has the dock and widgets set up through LPP)

not a single iphone owner that night wasnt jealous of the huge screen, easier typing keyboard, customizability, and smoothness of android.

the 4/4s owners couldnt even see the DPI difference between their "retina" display and my 230 ppi display.

so much fun :P

telling them the plan price was even better. especially since where we were I was getting faster data speeds
 
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