Calculating The Math Versus The Salesmen Savings Pitch
Financial Management

Calculating The Math Versus The Salesmen Savings Pitch

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So today I went to the mobile store for my carrier to see if I could get a cheap phone to replace the one I currently have as various items seem non-functional. At first I brought it into a repair shop and the person was honest where the repair fee could be $200 and that simply isn’t worth it for a four year plus year old phone. So in talking to the service rep I knew already that I couldn’t get a flagship phone for free. That’s because I have a grandfathered plan that is only $40 a month which pretty much gives me everything unlimited including calls to the US.

So at the end it seemed like I had to buy a phone outright where the best option was an LG one for about $268. To me this was temporary anyways and it would be a huge upgrade to what I was using. But the funny thing after was how he mentioned I could get a discount if I renewed my contract. Basically by paying an additional $7 per month on a two year term I could save $100 right mow making the phone $168.

My first thought was paying something extra per month with no additional service benefits doesn’t make sense. As well paying an additional $7 per month for two years is more than $100. With that the salesman kept telling me I would still save money. I even said the math out loud. Seven times twelve equals eight four. Times that by two that is one hundred and sixty eight. So why would I pay $168 dollars to save $100? He seemed kind of stunned and just kept going back to the point of how I save $100 right now.

I guess this kind of shows that you need to do the math yourself to see if there are truly saving to be found as opposed to the person trying to sell you as much as possible.

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