Carphone Warehouse / Phones 4 U etc.....

newtothisthing

This one will have been asked before so i will apologise now.....

Please can someone tell me how Carphone Warehouse / Phones 4 U are able to sell deals which are better than going direct to the network provider?.

Thanks

grumbler

They share huge commission that networks pay them.

newtothisthing

Thanks Grumbler.

Why can the networks not offer the same deals?, ie cut out the middle man?

grumbler

I think you can ask all manufactures the same question. Why can they not cut out the retailers?
The correct question has to be why they pay such huge commission.
It's because of the nature of the majority of UK customers. They are lazy to shop around and switch the provider when the contract comes to end.

The same business model works well in UK for all utilities, bank accounts, insurances, etc.