by NaythD
Explorer

Significantly lower prices on Third party sites, why is this?

I'm querying as to find out exactly how these third party sites can offer contracts at significantly lower prices as opposed to a customer coming directly to you.

The third party site i have in mind is mobilephonesdirect.com , the phone and contract is an Xperia ZX2, 4gb Data and unlimited minutes and calls. The contract on their website is £28.00 no upfront fees and the equivalent directly with EE is £44.00 with £10.00 upfront fees.

Can anyone shed some light as to how this could be?

 

Thank you,

Nathan

7 REPLIES 7
by Grand Master
Grand Master

Re: Significantly lower prices on Third party sites, why is this?

@NaythD: They source their handsets from overseas in bulk at considerably lower prices.

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by Brilliant Contributor
Brilliant Contributor

Re: Significantly lower prices on Third party sites, why is this?

You won't benefit from all EE services like Wi-Fi calling.


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by Brilliant Contributor
Brilliant Contributor

Re: Significantly lower prices on Third party sites, why is this?

Hello @NaythD

 

Thank you for taking the time to post today. Smiley Happy

 

As @XRaySpeX explained, they get their devices from suppliers in bulk at wholesale prices.

 

However, they also don't have a network to maintain like EE. Companies like Carphone Warehouse get a commission per subscription made to a network whereas EE need to make money to maintain their network and make profits on devices they purchase, while trying to pay staff to fulfill customer service needs (for example, billing, technical support, lost and stolen etc). Smiley Happy

by NaythD
Explorer

Re: Significantly lower prices on Third party sites, why is this?

So what you are saying is they buy their phone's in bulk, therefore saving money.

Then when they set up the billing with the network provider they recieve a commision therefore they can advertise these contracts at lower prices?

 

I am still a little confused though, why would features like wi-fi calling.

Are some features being missed out when the arrange the contract and billing for the customer?

 

Thank you,

Nayth

by Brilliant Contributor
Brilliant Contributor

Re: Significantly lower prices on Third party sites, why is this?

Thanks for replying @NaythDSmiley Happy

 

That's correct, both EE and third pary companies buy their phones from suppliers in bulk at wholesale prices.

 

Third party companies get a commission for each subscription made with a network and then everything else is left with the network to deal with (for example, billing, technical support, lost and stolen, retentions etc). Whereas the network; EE in this case, has to maintain their network, pay staff to fulfil customer service needs and make a profit on the phones they provide.

 

In regards to network features like WiFi Calling and VoLTE (4G Calling), these features are handset dependant and some handsets brought from a third party will have unbranded software on them and sometimes does not support certain network features. Whereas phones brought from the network will have the networks software installed and will support the network features.

 

Of course this will be handset dependant, for example; an iPhone brought from either the network, a third party like Carphone Warehouse or directly from Apple will support both WiFi Calling and VoLTE (4G Calling).

by NaythD
Explorer

Re: Significantly lower prices on Third party sites, why is this?

Thank you for clearing that up and taking the time to explain it to me.

Last question is in regards to surprise bills etc.. I have seen somewhere that the network provider may charge for line tariff? what does this mean?, an unexpected increase to the bill wouldnt be a nice surprise.

 

Regards,

Nathan

by
EE Community Support Team

Re: Significantly lower prices on Third party sites, why is this?

Hello there @NaythD

 

Thanks for coming to the community.

 

Each month you would pay your monthly plan charge that you agree to when you take out a contract with us.

 

The price of our pay monthly plans increases in line with RPI each year,

 

The monthly price of your plan will increase every year from March by an amount equal to the increase in the Retail Price Index published in January of the same year.

 

The annual price increase is based on the full price of your plan and/or additional services you take from us.

 

You can keep track of your usage within your My EE account, this will show all your extra charges if you every have any.

 

See our Understanding your EE bill Help page for full details.

 

Thanks, Leanne.

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