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to contract, to give customers a sense of being special again. Yes sure, manufacturers want all of their handsets available to everybody, however, where does this leave the value of the handset to the contract customer? SIM-free handsets are, as we in the industry all know, more expensive to buy in than the pre-pay variety, but most customers do not see this value in their contract. With handset values dropping quickly, a customer who has been connected for six months or more will not see the real value their phone had. The current credit crunch provides an ideal medium to change the way we sell our product. |
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Ratansi, Fones U Like: One of my fi rst clients of this year has been haggling with me for a free laptop with his upgrade. Now I don’t think these people realise the free laptop isn’t always free, it’s usually paid for in the line rental. But I have worked out a package for him to get his free laptop. It’s all down to clever marketing, but I think the public is now becoming more aware of this, and after explaining to them how much they would be paying if they went on lower tariffs without the freebies it makes more sense to them – and the request for free laptops does start to fade away. I also think credit checks should be more stringent than they have been recently. Maybe back to what they were like in the late 90s when it was harder to get a line. This may lower connections in general but it will reduce the never pays, and also can aid in retaining customers without having to give them everything including the kitchen sink to keep them. |
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Mayers, Border Mobiles: Had a customer signed a 24 month deal this time last year, for their money they would now be getting twice the value. These same customers are the ones who complain about why they are paying twice as much for half the value, forgetting the free gift. They are the same customers who only sign the deal in the fi rst place to get the free gift, the ones who are most likely to not complete the contract and the ones who are most likely to cause the dealer commission clawback. Networks need to work with distributors and dealers to help us all get through the credit crunch. Customers have a better idea these days on how the system works, so maybe it’s time to change the way it works with a better understanding of customer, distributor, network and dealer requirements? Marks, Fonefi nders & Mfonex: I think it is in the present customer’s nature now to expect extras as a right when they get a handset. They have been given all manner of things and free handsets for so long, that they now don’t know any different. Currently many dealers are now offering laptops, but the question is what is next? I think some sense need to come back into the industry and all of us need to now change the customer’s expectations of what they will get when they order a handset. There has to be a limit to what dealers, especially small independents, can offer if they are to survive. The other thing which many young people complain of is 18 month contracts. Networks, especially at this time, should really look at bringing in more 12 month contracts to help to reduce non-payers. |
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The IMPDA (Independent Mobile Phone Dealers Association) is open to all UK dealers and distributors. The aim of the IMPDA is to achieve a level playing fi eld for its members, and to champion quality improvements in the industry for a better future. If you would like to join the IMPDA then simply email membership@impda.co.uk. If you have a concern or story then either email admin@ impda.co.uk or call 0844 884 9702. |
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