Are cashback deals going to be a thing of the past?

cubegame

I notice that e2save and some other CPW group companies are giving the impression that they are no longer going to offer cashback deals after Monday at 4pm.

Anyone know if this is the case? I'm not prepared to actually pay for a mobile phone service after all!

Quentin

e2save have announced they cannot do any more 12 month free deals as from the end of this month. They say the new commission structure which applies as from 1/4/08 won't allow them to do them any more.

So if you are wanting one, get in now - just in case this time they are telling the truth, and it's not a way of pushing up sales (and therefore profits) for the end of the financial year.

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EDIT 1/4/08: Well, they were telling the "truth" e2save style! This announcement turns out to have been sales talk as suspected! They now have no more 12 month free deals, and have replaced them with "12 months for £0.01 a month" deals!!

SomeOne_2

Quentin wrote: »

e2save have announced they cannot do any more 12 month free deals as from the end of this month. They say the new commission structure which applies as from 1/4/08 won't allow them to do them any more.

So if you are wanting one, get in now - just in case this time they are telling the truth, and it's not a way of pushing up sales (and therefore profits) for the end of the financial year.

Out of interest, where did you hear about this announcement?

mobilejunkie

Unfortunately this has some credence. Apart from the stampede from disgruntled people who lost out with other dealers and the current consultation/review by ofcom it is about this time last year that all the problems started. Before most of the smaller internet dealers went bust a few months later, they were all obviously suddenly struggling to honour cashbacks at the same time. I always suspected the networks were behind these problems despite the disreputable existing practices of some of these dealers. When the previously reliable (albeit higher risk) ones also started to engage in dirty tricks and delaying tactics to avoid paying it appeared to me that there was far more too it than coincidence. Later stories came out from some of these dealers that certain networks had witheld commission payments and changed their commission structures. Now that it is that time of the year again I fear there may be some truth among cpw's general lies. The end of a financial year is also a plausible reason - but there is not much competition now thanks to the events of recent months and the crusade to ban cashback deals. However, there is still the possibility that the market will impose its own demands - people like me are used to (and only go for) these deals. I have been debating for the last two weeks whether I should grab another one - but one a month is a general rule and I've already had my March quota! Lol! Guess those of us who still support these deals will have to sweat it out. I would also still strongly advise people NOT to go for cashback deals unless they know exactly what they are getting into and follow ALL the groundrules. If you need a new contract in the next 2-3 months it is worth grabbing one right now - subject to what I just said. However, make certain you don't get panicked into one when you haven't really done sufficient research. There are many threads on cpw/E2save/OSPS etc; read these carefully before you decide. One factor is whether you are prepared to lose out if you get it wrong - i.e. would you go for the deal if you don't get the cashback. If you go for one and lose out blame yourself and not E2Save - despite their increasingly bad practices.

Poppy9

I've got 3 cashback deals with Dialaphone and so far they have paid me out 2/3 of my cash back - £480. Just the last installments to go now and then I will take out another deal with them. They are not 100% free but if you go via quidco you can get a deal that costs you just a £1 or two a month plus you can sell the phone at the end of the term.

mobilejunkie

They have recently been bought by phones4u. It remains to be seen whether they will be the same in the future.

Quentin

SomeOne wrote: »

Out of interest, where did you hear about this announcement?

Straight from the horses mouth!

Microstar_2

To be honest I think its probably better if C/B deals do disappear. Firstly a lot of people have followed the rules but lost a lot of money because of a supplier going bust.
Secondly, it seems that the remaining suppliers (e.g. e2s) are using some very dodgy tactics to avoid paying out.
I have had a fair number of e2s C/B's over the years and I know the rules. However I currently have final claims on 2 contracts awaiting payment and they are completely stonewalling me. I am now in the process of having to do two MCOL's to get my money.
A couple of weeks back I sent a LBA to the CPW Portal Way, London, address and they wouldn't sign the Recorded Delivery slip (according to Royal Mail). Sent it again by Special Delivery and they signed for it. No response yet (I gave them 10 days).
I really don't want to do business with a company that operates as CPW/e2s now operate, they are simply dishonest IMHO. I will never deal with them again - not even if they hand out free phones and contracts.

Lynsey

Best of luck, keep us informed. If all is done alright at your end you should have no problems, unless of course they go bust!!!!!!!!
I've been a great fan of e2save of late and had only one problem, having to chase up my "auto cashback" and have been promised it with an apology, so we shall see. Once a company starts having payment problems it looks like the inevitable is going to happen as CNM, TMO etc., only Mobileshop for me has continued to trade after difficulties, to a leser degree now.
I always wary of firms constantly pushing 12 months free deals and fear they are just raking in as much as possible before they fold, with profits milked of course. I felt a little safer with e2save as part of the CPW, but obviously it's by no means a guarantee e2save will survive, but that's the gamble, a gamble that they won't go bust.

A couple of weeks back I sent a LBA to the CPW Portal Way, London, address and they wouldn't sign the Recorded Delivery slip (according to Royal Mail).

This is a little worrying and needs to be watched.

Again, best of luck.

Lynsey