So it is time to buy a cell phone or upgrade your existing one. Beware! There are many costly traps that await you at your local cell phone store. Here are a list of tips to remember on your next trip:
Device Insurance – Many retail locations offer device insurance to protect you against loss, theft or damage caused by the user. These plans run between $6 -$10 a month, per line. If a claim is needed, a deductible also will have to be paid. Make sure you understand how the insurance works and whether it is available at all locations. Some insurance plans, such as eSecuritel, can only be accessed from the location where you purchased the phone. This will do you little good if your phone is damaged while you are away from home. Premium retail locations at Verizon Wireless and U.S. Cellular commonly offer multiple types of insurance for customers to choose from. Plans such as ProtectCell include many extraneous benefits as well. Don’t pay for what you won’t use.
Accessories – The salesperson makes a commission on the phone, the plan and the accessories, so don’t be surprised if they offer you every accessory that is available for your model device. You will probably need a case and screen protector, but make sure they are giving you a deal. The markup on these items is tremendous and deals can be made. If not, there are plenty of discount locations that will sell the exact same accessory for much less. Car chargers, wall chargers and SD cards are often repackaged to be brand specific so they can sell for a lot more. Be leery – it is quite probably the exact same accessory that is in the generic packaging for a lot lower price.
Add-on Features – Ringback tones, ringtones, and data usage monitors. These are all examples of additional plan features that the salesman may attempt to sell you. If you have a smartphone, there are plenty of free applications for ringtones and ringback tones, as well as data usage monitors. Why pay for something that is free? Verizon Wireless charges a monthly fee to add parental controls to a child’s cell phone.
Plan/Minute Upgrades – A very common sales tactic is to convince the user to try an unlimited or high minute plan for one month and then change the plan if necessary. This creates the highest possible commission situation for the sales associate, but will also create the highest possible prorated bill the first month. Ask questions about what the cost of your first bill will be and compare to other alternatives. And, always remember that you can change the plan you have at least once per month with any carrier. So, if you are not using all the minutes you are paying for, consider lowering your plan to save money.
Device Costs – The actual price of the cell device is set in stone at many stores, but the sales associate has a lot of leeway to lower prices to close a deal. There won’t be a lot of bargaining room, but there is no harm in asking for a lower price. Sales associates have quotas to meet and moving another phone out the door at a slightly lower price may be what they need to keep their job.
First Statement – The first statement is always the most difficult one to understand because of the addition of proration charges at activation. So, avoid overpaying by taking this statement into the store and review it with the sales associate who sold you the device. Common mistakes on the first bill can be anything from incorrect proration charges to failure to waive activation fees as promised. Make sure you are not overpaying.
Never forget that the salesman is making a commission on everything they can sell you. There is nothing wrong with that, but know what you buy and buy only what you need. And always remember to take your time before signing any agreements.