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How do phone shops make money.


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Old 21-10-2013, 19:22
Mythica
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How do the likes of Phones4u and Carphone warehouse make enough money to stay open? I got a free Samsung Galaxy S4 from Phones4u which I pay monthly to EE. So where did they make money from me? If I remember correctly they were giving away the free phone were EE directly were charging for it.

just to add I probably know the answer, the networks pay them for selling contracts? The next question has to be why pay someone to do something they already do.
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Old 21-10-2013, 19:31
sethpet
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How do the likes of Phones4u and Carphone warehouse make enough money to stay open? I got a free Samsung Galaxy S4 from Phones4u which I pay monthly to EE. So where did they make money from me? If I remember correctly they were giving away the free phone were EE directly were charging for it.
Commission from the network's
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Old 21-10-2013, 19:36
Mythica
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I edited my post to add something
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Old 21-10-2013, 19:51
sethpet
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Stems from a time when the networks were not allowed a retail presence on the high street.

The networks would no doubt love to remove them from the market
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Old 21-10-2013, 20:37
Mythica
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Stems from a time when the networks were not allowed a retail presence on the high street.

The networks would no doubt love to remove them from the market
Is it only time before they stop selling through phone shops?
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Old 21-10-2013, 20:47
Mark in Essex
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I believe they are just fronts for money laundering and don't actually make any money.
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Old 21-10-2013, 20:52
alan1302
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I believe they are just fronts for money laundering and don't actually make any money.
Ok
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Old 21-10-2013, 20:54
jabbamk1
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I believe they are just fronts for money laundering and don't actually make any money.
The phones they sell are stashed with drugs

Everyones in on it.
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Old 21-10-2013, 20:54
Running Water
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Retailers selling multiple networks will always exist. They're a channel for sales advisers to offer deals on various networks which often works in their favour.

For example, Mr A walks into a Vodafone store and may have a look around, approach a sales advisor, and join the network.

Now, O2's benefit of selling via CPW, would be that if Mr A walks into the CPW store, he has the choice (and possibility) of joining O2, rather than him being limited to Vodafone.

Make sense?
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Old 21-10-2013, 21:01
enapace
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Retailers selling multiple networks will always exist. They're a channel for sales advisers to offer deals on various networks which often works in their favour.

For example, Mr A walks into a Vodafone store and may have a look around, approach a sales advisor, and join the network.

Now, O2's benefit of selling via CPW, would be that if Mr A walks into the CPW store, he has the choice (and possibility) of joining O2, rather than him being limited to Vodafone.

Make sense?
Yeah but that only works for CPW. Phones for u you are limited to Vodafone/Orange/T-Mobile you can't even get EE4G. Never mind Three or O2.
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Old 21-10-2013, 21:03
sethpet
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Retailers selling multiple networks will always exist. They're a channel for sales advisers to offer deals on various networks which often works in their favour.

For example, Mr A walks into a Vodafone store and may have a look around, approach a sales advisor, and join the network.

Now, O2's benefit of selling via CPW, would be that if Mr A walks into the CPW store, he has the choice (and possibility) of joining O2, rather than him being limited to Vodafone.

Make sense?
That's a reason for the networks to want rid of independents
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Old 21-10-2013, 22:17
Mythica
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Yeah but that only works for CPW. Phones for u you are limited to Vodafone/Orange/T-Mobile you can't even get EE4G. Never mind Three or O2.
Yes you can I've got EE4G from Phones4u.
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Old 21-10-2013, 22:22
enapace
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Yes you can I've got EE4G from Phones4u.
I'm sorry than could of sworn someone told me you couldn't never mind. I know you can't get Three or O2 though and that is still only giving you 2 networks for choice really.
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Old 21-10-2013, 22:22
Mythica
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Retailers selling multiple networks will always exist. They're a channel for sales advisers to offer deals on various networks which often works in their favour.

For example, Mr A walks into a Vodafone store and may have a look around, approach a sales advisor, and join the network.

Now, O2's benefit of selling via CPW, would be that if Mr A walks into the CPW store, he has the choice (and possibility) of joining O2, rather than him being limited to Vodafone.

Make sense?
No it doesn't

Why can't Mr A walk into an O2 store? Why did you limit it to Vodafone and CPW. Also Mr A can walk into CPW and walk out with a Vodafone contract so how would that benefit O2?
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Old 21-10-2013, 22:26
Mythica
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I'm sorry than could of sworn someone told me you couldn't never mind. I know you can't get Three or O2 though and that is still only giving you 2 networks for choice really.
Their website says you can get O2 too.
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Old 21-10-2013, 22:33
enapace
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Their website says you can get O2 too.
That is upgrades only. I just think it a bit more limiting then say CPW.
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