Mobile Cashback Offers
September 11, 2008
In an increasing bid to remain competitive, mobile cashback has become an increasingly popular promotional tool, with leading mobile phone retailers including the Carphone Warehouse, Dialaphone, MegaMobiles, and buymobilephones.net among a number of companies offering deals to pay cashback on your mobile phone contract.
In principle, this deal is not any different from the various free gifts such as XBOX 360 consoles, Playstation 3’s, Apple IPODs and other such luxuries that many companies have given away in return for taking out a mobile phone contract with them in the past.
The difference is that the principle of mobile cashback has been causing a great deal of confusion to users because in principle it seems too good to be true. It is infact a very good deal and one users should take up, but as for it being too good to be true, that is not actually the case. To understand why, lets get into the mind of the mobile phone retailer.
Companies such as O2 and Vodafone predominantly target and benefit from business users, as this is where there profit lies. To service these major clients, they buy huge capacity to be able to cope with the demand. In order to provide the most competitive prices for their business customers, they try to achieve economies of scale by purchasing huge levels of bandwidth which they then fill with customer contracts (ie. every day mobile phone users like you or I). Therefore, in order to achieve their low cost business pricing, they need to retain a high number of personal customers to meet demand. For this reason, 02, Vodafone, Orange and Three offer huge incentives to the mobile retailers such as Carphone Warehouse, The Link and Phones4u.
Now lets step into the mind of Carphone Warehouse, who perhaps make on average £300 for every mobile phone contract you take out with them. Now in a perfect world, they would not need to offer any cashback and would simply keep the £300 as profit. However, with their competitors now offering cashback or free gifts with each contact, the Carphone Warehouse must now offer an incentive otherwise nobody is going to choose them as the company to make their purchase with.
The latest offer is in the form of cashback, which rewards the loyalty and prompt payment of the customer and can save you several hundred pounds on your mobile phone contract each year. There is nothing to fear with these offers, it is a legitimate business strategy which benefits both the retailer and the consumer.
To claim your mobile phone cashback, you simply need to email the retailer at pre-determined times in the year (this will vary from retailer to retailer) and assuming you have paid all your bills on time and not lowered your tarrif, you will receive cashback on your mobile contract.
On this page, we will summarise the latest and best mobile cashback offers to help you find the best value mobile phone contract.
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