A few days back I wrote about: No contract. I have been paying attention since then… It’s amazing how much we think in contracts. We have a $10 a month phone plan, down from a $95 (discounted) phone plan. And I love it. Now that HP has settle into his plan, he likes it too. (He hated Google Voice – I like it)
Back to the contract part. As I have shopped for a smartphone I have listened to other customers. They want a contract. They want a phone for ‘free’. Or at least a very low price. In order to do that they need a contract. A 2 year contract….
How about we just buy the phone outright? What? I’m sorry, can you say that again? Yep… Just buy the phone outright.
If I bought last years model of the iPhone (4s) contract free, I would pay $549.00. If I bought it with a contract I would pay only $99. That’s a savings of $450. Or is it?
Basic math here we come….
Contract free = $ 549 up front and $ 10 a month after that for 2 years (how long a contract lasts). For a total of: $789
With a contract = $99 up front and $ 80 a month (at the least) after that for 2 years (again the length of time of a contract). For a total of: $2019
$2019 versus $789 = = = I’ll take the $789 for a savings of: $1230 over the course of 2 years. Hey, at that rate, if I wanted a new phone every year (or the newest model of phone every other year) I could: with money left over.
Why, oh why, must we think that we HAVE to have a contract?
And where else are we just throwing money away?