Watch out! Illogical mobile tariffs!

[RecordAceFromNew]

Like insurance renewals, I think one should always shop around when the existing contract's time is up.

I want to get a new Samsung Genio Slide for a family member and I decided to shop around (within Vodafone, because the Vodafone Family add-on is very useful to me).

I only want minimal minutes and texts for this plan and the new phone. What transpired was the following quotes for 100 minutes plus 500 texts per month:

12 months for £20 per month, or
18 months for £15 per month, or
24 months for £10 per month.

Now it is understandable for shorter contracts to be more expensive because the carrier has to recoup the cost of the "free" phone (and hopefully nobody believes they get new phones for "free"). However, the above tariffs actually work out to mean:

12 months for £20 per month which is £240 for 12 months, or
18 months for £15 per month which is £270 for 18 months, or
24 months for £10 per month which is £240 for 24 months.

I think you will all agree with me, that only a mug would buy the 12 or 18 months contracts in this instance. You are paying no more overall buying the 24 months contract than buying the alternative plans!

In fact, since an unlocked Samsung Genio Slide (and Vodafone Monthly Plan phones are unlocked) costs about £120 on the street, the 24 month tariff is effectively costing me only £5 per month.

I can live with that.

 

[ASC1951]

I think you will all agree with me, that only a mug would buy the 12 or 18 months contracts in this instance.

A significant proportion of the population is too stupid - or more usually, too lazy - to do that sort of calculation and supermarkets in particular are skilled in exploiting that laziness. There is usually also a genuinely lower price to stop people who can work it out from going elsewhere.

 

[Jezston]

I'm not sure I'd want to be stuck into any contract for two years with a budget phone that warranty only lasts one year.