Why mobiles.co.uk offer cheap deals?

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Nokinoki
Nokinoki Posts: 2 Newbie
in Mobiles
I'm thinking about buying Samsung galaxy s9 by mobiles.co.uk. The question is can they be trusted?

The thing is that they offer Samsung Galaxy S9 64GB Black with Vodaphone for only £30 which includes unlimited text, min and 16 GB DATA. (+£125 upfront cost)

It sounds awkward to me since buying only s9 with instalments is about £25/30. Also, I wasn't able to find this, as well as some other deals on Vodaphone website.

Any idea why they are so cheap?

Comments

  • donnac2558
    donnac2558 Posts: 3,610 Forumite
    First Anniversary Name Dropper First Post
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    Why didn't you read this thread?

    https://forums.moneysavingexpert.com/showthread.php?t=5834955
  • mobilejunkie
    mobilejunkie Posts: 8,460 Forumite
    edited 27 April 2018 at 8:42AM
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    That's an unfair reference.

    Mobiles.co (and a few other internet dealers) usually offer better deals because the networks pay them commission, some of which they pass on. They used to be more associated with cashback contracts (effectively a second contract with the dealer) but these have declined in recent years.

    The only real "trust" is whether you will get the cashback and the phone. In my experience I always got the cashback (using the appropriate legal prcoess with CPW when necessary) and as far as I can recall always got the phone. I also ordered cashback contracts for several other people over many years, amounting to scores of contracts in that time with Mobiles.co - though stopped using them over three years ago when a) their cashback deals weren't very good, and b) they refused to pay cashback (from a cashback site for ordering - different sort of cashback!) on two separate orders. I also resigned form the cashback site (despite being their highest ever cashback earner at one time - or so they told me). You can enforce cashback with the dealer, but not the cashback sites - and THEY definitely cannot be trusted.
  • Nokinoki
    Nokinoki Posts: 2 Newbie
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    Thanks for replay.

    I'm not into phones so much so can someone explain to me how does cashback deals works?

    Thanks in advance
  • mobilejunkie
    mobilejunkie Posts: 8,460 Forumite
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    https://forums.moneysavingexpert.com/showthread.php?t=558661&highlight=cashback
  • System
    System Posts: 178,094 Community Admin
    Photogenic Name Dropper First Post
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    Nokinoki wrote: »
    I'm thinking about buying Samsung galaxy s9 by mobiles.co.uk. The question is can they be trusted?

    The thing is that they offer Samsung Galaxy S9 64GB Black with Vodaphone for only £30 which includes unlimited text, min and 16 GB DATA. (+£125 upfront cost)

    It sounds awkward to me since buying only s9 with instalments is about £25/30. Also, I wasn't able to find this, as well as some other deals on Vodaphone website.

    Any idea why they are so cheap?

    Mobiles.co.uk and e2save are Carphonewarehouse's internet brands. They effectively let them sell cheaper without making them honour those prices in their high street stores.

    The economic term is price discrimination and is fairly common in business.
  • jonathon
    jonathon Posts: 749 Forumite
    First Post First Anniversary
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    I just got an s9 for £50 upfront (£38 back from quidco )


    10 gb date unlimited min/text £34 a month with o2
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