Cashback - Any Alternatives?

Stompa

I'm new to the world of purchasing contract phones, but see that the best deals are those which involve some sort of cashback. This is a really daft system, specifically designed to confuse consumers and make deals between various retailers/tariffs more difficult to compare. It unecessarily complicates matters for both the buyer and the retailer.

Is there anybody out there that offers similar value deals without the need to jump through all these hoops?

Stompa

L.F

I've used cashback both with CPW and E2Save with no problems. However, it seems to me that you have to be sure that whichever company you buy from is going to be in business for at least the next twelve months as, presumably, if the company goes bust you lose the outstanding cashback!

Stompa

However, it seems to me that you have to be sure that whichever company you buy from is going to be in business for at least the next twelve months as, presumably, if the company goes bust you lose the outstanding cashback!

I agree, but I simply don't understand (other than that it's in the retailers favour!) why the system has to work this way.

For example, if I go to e2save it'll tell me something like:

"Your first 3 months will be billed at £15.00* by Orange. Orange will then bill you at £30.00 per month for the remainder of your contract.

To gain the remainder of your line rental / cash back please send your 4th, 8th and 12th monthly bills within 28 days of receipt to us and we will credit you by cheque with £55.00 each time.

This will save you £210.00 over the 12 month duration of the contract. In effect this means that your average line rental per month over the contract period is £12.50 per month."

Now if the average line rental is going to be £12.50 per month why can't I simply pay that amount each month and not have to bother with any cashback (which makes extra work for both me and the retailer). Alternatively I'd be quite happy to pay £150 for the full year up front.

I can't help thinking that if a retailer were to adopt this more straightforward system then they'd be very popular!

Stompa

kai666

You have 2 contracts, 1 with orange or whoever, and one with e2save or whoever. The mobile company has nothing to do with the reduced line rental being offered, so they take the full amount each month. The cashback comes from the people you bought the phone from, so it can't be lumped together to reduce the line rental each month

As for making the claim periods over the 12 months, that is in the hopes that people will forget about it, so they will not have to pay out the money. presumable people must forget/miss deadlines etc or they wouldn't operate like that

Stompa

As for making the claim periods over the 12 months, that is in the hopes that people will forget about it, so they will not have to pay out the money. presumable people must forget/miss deadlines etc or they wouldn't operate like that

Yes, I know. I can't think of any other instances though where companies operate this way, so why do consumers put up with it with mobile phones.

Stompa

ToneToni

Stompa wrote:

As for making the claim periods over the 12 months, that is in the hopes that people will forget about it, so they will not have to pay out the money. presumable people must forget/miss deadlines etc or they wouldn't operate like that

Yes, I know. I can't think of any other instances though where companies operate this way, so why do consumers put up with it with mobile phones.

Stompa

Couldnt the same be said for the Air industry? They overbook flights all the time in the hope of some people missing/delayed in traffic/forgetting the flight.

bamberbamboo

Afternoon STOMPA,

I agree totally with what you are saying last year I did a deal with a company that has now unfortunately gone bust, and that was that I paid the whole amount on the 1st bill think it was about £300 ish and they refunded it within 28 days this meant that each month I got a bill that was £0.00 unless I went over my call/text allowance which was great but haven't heard of any such deal since, but would love another one if anyone knows of such a deal

Karnam

i know cashback is cheaper for all the hassle but ive never bothered. i just go straight to the phone company like orange or tmobile after researching thier direct deals online.

thegoon

or i think buymobilephones.net do a free ceramic psp with a contract and its sent out after a month, other one is scancom who send you a cheque with your phone and you send it back in 3 months to get it signed

cheddar

I am also ticked off at all the cashback offers etc... I don't want have to do that, is there a way I can just look for a normal contract? I don't really want to be spending much more than £20 a month and I hardly use my phone, people tend to ring me on it and not the other way round! I can't be doing with all this sending things off and remembering to ring and claim or whatever! All the comparison sites have the cashback thing, am I destined to just be looking on the o2, t-mobile etc websites???

Or does anyone know of any good NON cashback offers around???

Thanks in advance! :money:

michaels

Stompa wrote:

As for making the claim periods over the 12 months, that is in the hopes that people will forget about it, so they will not have to pay out the money. presumable people must forget/miss deadlines etc or they wouldn't operate like that

Yes, I know. I can't think of any other instances though where companies operate this way, so why do consumers put up with it with mobile phones.

Stompa

Not quite the only reason - also the retailers only get some of their commission from thew network if the account is still connected after 6 months which justifies withholding payments till then.
I also understand the carphone warehouse (e2save and now osps) have 'revenue sharing' agreements with the networks and thus get a percentager of every bill you pay, hance they are getting money in for the entire 12 month period..