Where to get a 1-year contract

[Davinci1]

I'm looking to switch to Verizon, as a new customer, but I would like to sign a 1-year contract only. The only place I could find that option was directly from Verizon, but their prices are quite high. Is there any other retailer, online or not, which can also offer the 1-year contracts ? Should I go to a Verizon store and hope to get a lower price ? Thanks in advance for your tips.

 

[Menno]

No, you won't find someone selling the device for anything signifigant under what corp Verizon offers for one year contracts.

The reason for this is because Verizon pays retailers a fraction of the cost for one year agreements, so most don't even offer it. If they do offer it, their prices will be the same or higher than Verizon's are to try and make up some of the cost. The reason some retailers offer lower prices than verizon on 2yr contracts is that they operate on low profit margins for those, depending on volume. Most spiffs (extra compensation) those retailers receive depend on 2 year contracts, so if you remove that they don't have wiggle room.

One year pricing is exactly $70 more than 2yr pricing is on that phone. This is a STEAL.

You are still getting the phone for hundreds below retail, and only paying a "penalty" of $70. This is less than 1 month of bills if you are looking at a smartphone. That is a very small price to pay for the ability to upgrade every 10 months instead of 20. Seriously... $70 to shave 12 months off your contract. That's not expensive, at all.

If you want a cheap price on a phone, you have to sign a 2yr agreement. If you want to sign with only a one year contract, you have to pay more, but the cost of doing so is still a LOT cheaper than going prepaid

 

[Davinci1]

Thank you for the detailed answer. I agree with you and the reasoning, was just wondering if maybe some other retailer would still go through the trouble for 1 year contracts.

The price difference isn't simply $70. For example the Droid Incredible:
- $50 with 2-year contract at Amazon
- $199 with 2-year contract from Verizon (and that includes a $100 mail in rebate)
-> therefore $270 for 1-year.

The difference is 270-50=$220, which is getting close to the ETF after 1 year, under a 2-year contract.

 

[Menno]

Because it's off of NORMAL 2 year pricing. Amazon has the Dinc in sale right now. Their normal selling price for it is also 199.

Like I said, if retailers are going to go through the hassle of one year pricing, then they'll go off the normal sale price.

When a customer goes from a 2 year to a one year, the retailer loses (on average) over $200 in commission to work with. This means they can't give sale prices.

You will NOT find an incredible for a one year contract for much less than 270. The retail is almost 600, so this is still a signifigant discount.

 

[quetzalcoatl]

With thrid party retailers like amazon, wirefly, ect you have a secondary contract that you sign with them. If you choose to make any changes to your contract within 180 days then you are hit with a fee by them that more than makes up for buying the phone from Verizon. And it is any change you can not even up your minutes or texts if you find out you need more. The reason for this is that Verizon gives them a kickback at 180 days out.

 

[Menno]

With thrid party retailers like amazon, wirefly, ect you have a secondary contract that you sign with them. If you choose to make any changes to your contract within 180 days then you are hit with a fee by them that more than makes up for buying the phone from Verizon. And it is any change you can not even up your minutes or texts if you find out you need more. The reason for this is that Verizon gives them a kickback at 180 days out.

they actually don't get paid at all from Verizon until 6 months out. The reason they have the chargeback is if you cancel before the 6 month mark, they get nothing and they're out the retail cost of the phone. Verizon doesn't pass off any of the ETF to agents, so they're SOL. It's not a kickback, it's them getting paid for the phones.

They have to buy phones from Verizon, sell them at heavily discounted prices, and then wait 6 months to get compensated. That's why third parties have these cancellation agreements. The amount they get for one year contracts decreases significantly, which is why most don't offer them.