Please follow below steps while buying a new phone:
1) Figure out what you want. Determine the phone carrier you want
2) Compare plans that include free phones. Look on paper for two phones, one ‘free’ and one that costs about Rs5000. Call this the “Net Cost of Phone”.
3) Call a mobile phone store with a hypothetical situation. Tell them that you lost your phone and you need to buy a new one. Tell them that you are debating between the two phones you identified in the next step. Write down the prices of the phones, respectively. Call this the “Gross Cost of Phone”. You’ll notice that the phones are not even close to the advertised price. No worries, you’re just doing research.
4) Understand what the companies want. Cell phone stores want to make profit on a phone they outright sell. Estimate they want to make Rs2500. Call this “Profit on Phone”.
5) Perform these steps for each phone (once per phone): Figure out the cost of the phone by performing the following calculation: Gross Cost of Phone – Profit on Phone
Call the answer “Phone Value”
6) Know what motivates stores. Cell phone stores want to make at least $100 for each contract they have signed (estimated number). Call this the “Contract Profit”.
7) Figure out the value of their contracts. This is the money that the carrier pays the cell phone store for your signed contract. Contract Profit + (Net Cost of Phone + Phone Value). The answer to the formula is an estimate of how much money they make on a contract.
8) Negotiate for the phone. Now that you know the inside scoop on what’s going on, you can negotiate for your new phone.
9) Decide on a plan and a carrier.
10) Run the credit check (if necessary). Understand that this is not negotiable.
11) Pick a phone.
12) Negotiate the price of the phone. Getting Rs500 to Rs1500 off should be relatively simple. If you are not getting a response, leave the store. Tell them you need to shop around. You can always go to another store. When you return to a store, they’ll get hungry for the sale and see that you are interested. Press to have the price of the phone lowered. Only ask once, regardless if they lower the price of the phone, and tell them that you want accessories.
13) Use the formula. You should have a rough idea how much money they are making. Remember that that everything is an estimate. Use that number to push them into free, or lower price accessories.
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