12 months FREE line rental on a 12 month contract

Pelicantilos

Is this too good to be true?

I am thinking of buying a Sony Ericsson K750i which is shown at the bottom left hand corner of the following link.

http://www.coolnewmobile.co.uk/index2.asp?submit.x=65&submit.y=8&id=334

Am I missing something here or will I genuinely get a free phone for a year?

Scouse337

It's free as long as you remember to claim back the cash. It will cost you £30 a month, but you claim that back in installments.

Pelicantilos

Yeah, I appreciate i have to claim the money back periodically.

I was wondering if there was a catch? How does the retailer make their money, cos from what I can see I get a free phone, free calls and free texts for a year (providing i stay within the package limits).

Elf_2

The above retailer's policy is that if you miss one cashback claim - all your claims will be void.

All cashback retailer's make their money on the basis that enough people will forget to return their cashback claims within the time limit specified thus making up their profits.

Also - another way is that most of these companies get their phones shipped very very cheaply from China, and it costs them much less than they tell the public to give out a contract (hence the thousands of minutes some contract providers give) - plus they also get commission from the relative network which they've signed up a customer to.

redux

Pelicantilos wrote:

How does the retailer make their money, cos from what I can see I get a free phone, free calls and free texts for a year (providing i stay within the package limits).

The retailer makes their money in commission from the network, who are hoping it will be a loss leader and you'll use the phone more than you expect

Also, some people forget to claim the cashback, and they get commission on the insurance products that are added on (3 months free, then people forget to cancel that too)

Pelicantilos

Thanks for all your comments.

I posted the same question on another forum and the following website was suggested.

http://www.reestitmutton.co.uk/MOBILES/index.php?query=latest

It makes interesting reading!

salthegal

It seems 12 month free deals are becoming quite common now though I think they are mainly on the less flashy or latest phones? (not that Im bothered about flashy phones), Im thinking of going for one of these deals for my daughter, keep an eye on the onecompare site to see what deals are about at present, its proven very handy, as said Im pretty much set on getting a simpe nokia 12 month free deal for my daughter, should save a packet compared to her current pay as you go phone.

Edinburghlass_2

Better still use the MSE link to onecompare

badger._2

It's all good and well getting the phone for free...

But you've still got the calls and texts to pay for?

salthegal

You get the phone and included contract for free. So it wont cost you anything more than it should if you stay within the contracts monthly allowance. Oh and you have to be strict with sending the cashback claims back in, otherwise its useless.

badger._2

OK, i see. Exploring that website now.

How about taking up the contract, selling the phone, (say for £200..) letting the contract run it's course (costs you £360), then claim your cashback...(£360)

Profit is potentially whatever you sell the phone for...?