Quote:
Originally Posted by bigray327
What's dishonest about it? The third party gets huge kick-backs from Sprint for signing a person up for 2 years. It's their business what price they sell the Mogul for... their bottom line is their concern, not Sprint's.
I used a deal like this off eBay. Didn't need SERO, I get a good deal through my company. A hundred bucks for this phone was a no-brainer.
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Here's why this doesn't work:
- Sprint customer out of contract ports # to T-Mobile
- Sprint customer comes back within 15 days (or whatever) ports in to Sprint thru dealer offering $100 Mogul for New Customers
- Sprint's system "sees" the customer as an "existing" customer
- Sprint pays dealer only part of the commission (upgrade commission), not the "new customer" commission the dealer was using to subsidize the price of the Mogul
- Dealer looses money -or- Sprint gets involved and charges customer's account for the appropriate price of the phone.
In the cellular world, this is considered, "False Churn".
We can discuss it back and forth, but after 13 years in the wireless industry, I already have a grasp of this situation. It may be wrong, you may think it's ok, but in the end, this is how it works at Sprint (and most other carriers.)
By the way, this is why the ebay auction states, "Must Prequalify"... this is the kind of stuff the dealer is looking for. They will run your eligibility and credit, obviously eligibility must be perfect and your credit must be in the top tier so they don't have to worry about getting a "charge back" from Sprint. Sprint charges back dealers their commissions if the new customer doesn't pay their bill on time in the first 181 days, or if they cancel service. So in that unfortunate customer situation, the dealer looses all the money they invested in the phone PLUS the profit they would have made. Early termination fees are completely kept in Sprint's pocket.