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Why have "CASHBACKS" at all ?

Last post Wed, May 13 2009, 10:12 AM by Graeme Delap. 4 replies.
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  •  Tue, May 05 2009, 8:27 AM

    Question for Rob Barnes

    Rob,

    I am looking for a SIM only deal on mobile phones - which your link at the top of the page does not cover (I don't need or want a replacement phone) - plus no mention is made of mobile internet (WAP or GPRS) - Why ?

    • Post Points: 5
  •  Mon, May 11 2009, 7:06 PM

    Why have "CASHBACKS" at all ?

    I can't be the only person turned off by cashbacks

    Why not just offer us a decent service at a good price

    I am after a SIM only - unlimited txt plus unlimited mobile internet

    When I check my options on MSM.COM - I get streams of cashback deals

    Which do not interest me - plus where's the SIM only options ?

    And where's the mobile internet add-on ?

    • Post Points: 20
  •  Mon, May 11 2009, 8:11 PM

    Re: Why have "CASHBACKS" at all ?

    The appeal of cashbacks to some is that you get the money now but pay for the agreement over a year or two. I don't like them either and they are used by a lot of dodgy companies who don't pay up.

    Some of the larger supermarkets do good, straightforward sim only deals. msm.com sell some sort of food supliment - was it somewhere else that you were looking?

    • Post Points: 20
  •  Tue, May 12 2009, 6:30 PM

    Re: Why have "CASHBACKS" at all ?

    MoneySuperMarket.com !!

    • Post Points: 20
  •  Wed, May 13 2009, 10:12 AM

    Re: Why have "CASHBACKS" at all ?

    Hiya Twee - how's things?

    Maxsteam is - as usual - quite right: cashbacks are one of those things that have had a lot of bad press over the last two years or so, often for very good reason.

    A lot of people suffered - and you can find numerous threads on the grief, misery and anger they caused to many on this community forum - but the I’m happy to say the “cowboy” outfits seem to be largely a thing of the past. I think the original business model relied on something like only 30-40%% of people remembering to fill in the cashback forms, send them off by the correct date and jump through numerous hoops to get the cashback.

    There's no doubt the mobile phone industry learned some hard (but valuable) lessons from it - as did we all: if something looks to good to be true, it very often is. It is worth pointing out, though, that if there was little demand for cashback deals, they simply wouldn't be there. As Ofcom became more involved in regulation, however, rules were tightened, codes of conduct agreed and cashback deals made much more transparent to customers. The deals on offer now are largely based around higher tariffs for contracts of around 24 months. Incentives to attract customers have also moved away from cashbacks towards free gifts – like an HDTV, Sony Wii or Xbox.

    As always – and this goes not just for the mobile phones market – our advice is to shop around and check the details of the contract/deal carefully to make sure it’s right for you and you are fully aware of what’s required.

    Personally speaking, I never touch cashback deals and I'm naturally suspicious of free gifts/offers etc. But then, I'm the sort of person who only switched to a monthly mobile contract at the end of last year - after 8 years of pay-as-you-go - it suited my needs. If I'm buying something, it has to be a product I am keen on buying in the first place as well as something I can afford: if there's a deal to be had on top of that, then that's a very welcome bonus - if the deal is right. Naturally, I'll keep a look out for them but I'd never choose something simply because it's been discounted, in a sale or on offer.

    As far as SIM-only deals are concerned, I’ve spoken to our mobiles phones team and they’re very keen to introduce some important changes to our mobile phones channel in the coming weeks and months – keep an eye out. I’m sure SIM only deals will be in there. Watch this space... ;o)


    Cheers,
    Graeme Delap, Community Editor,
    graeme.delap@moneysupermarket.com

    Vote for your Community Star: Community Stars 2009
    • Post Points: 20