Why people buy phones at discount phone repair shops
We all know how easy it is to fall for a great deal when it comes to phone repair.
But a recent study by researchers at the University of Warwick suggests that the practice of buying a phone from a phone repair shop at a discount is more than just a convenient way of paying for a phone – it can actually be helping to increase sales.
Dr. Michael W. Johnson, the study’s lead author, says he thinks there’s a correlation between discount phone repairs and a rise in phone sales.
The team’s study looked at phone sales at about 1,500 phone repair outlets across the UK and found that a significant proportion of the outlets reported that customers were buying phones at a discounted price because they were willing to pay more for a service.
“It suggests that when a phone is sold at a lower price because of the discount, the sale may increase sales in the future,” says Johnson.
In the UK, about 2 million people have bought a phone since the introduction of a discount phone service in 2009.
The study looked specifically at how phone sales affected a company’s profit margins, but also found that discounts made up about one-third of the total profit of a phone company.
So Johnson and his colleagues suggest that discounting could be just one way in which people are paying more for their phones, which can increase their chances of buying the phone in the long term.
And if you’re looking for an alternative to the usual cheap phone deals, then perhaps it’s time to consider an early retirement?
If you think you’re in the market for a new phone, check out these other stories: What is a discount?
A discount is a percentage off a standard price.
For example, if a phone was sold for $99.99, you would pay a discount of 10% – that’s a $20 savings of $100.
What happens when I buy a phone at a cheaper price?
The discount applies only if you have already bought the phone at the same price or better.
The discount does not apply if you already have a phone.
How to reduce your discount:The first step is to take into account how much you’d be saving if you bought the new phone at its standard price or above.
The cheapest way to find out is to use our calculator.
Find out how much savings you could expect from buying a new device at a standard or better price.