Best Buy said won't sell iphone 5s off contract

bestbuy is terrible... and a huge ripoff.

its not that they're not allowed to, its just they dont want to because they get commission for new contracts.

There is no bestbuy rule saying they cant sell phones off contract. People buy replacement phones all the time. Hell, even Bestbuy online website shows an off contract option available, granted its $50 more than apple but they will price match.

They want to make money off contracts that's why.
Maybe in a few months when stock is plenty they will start selling them full price.
It sucks for sure.
Why does it have to be so hard just to purchase a cellphone without a contract? In the rest of the world they are all sold full price.
Here they look at you like a criminal if you try to buy one full price.

BJonson said:

Not true. Manager said they won't sell them off contract. Plus they would not price match when I bought it and yes I had to pay $799 for the 32gb 5s.

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doesn't mean its not true. The manager can do whatever they want. Many people i know have bought iphones at best buys off contract. Given the fact their website gives you that option, im more inclined to believe the website of bestbuy.com than a store manager whos mad he didn't get commission on a new contract.

Plus check the threads. Many people here on the boards have bought off contact iPhones at bestbuy and gotten it price matched. sounds like this manager is a real douche you should avoid doing business with in the future.

Best buy charges $50 more than retail for the iphones.

Col Ronson said:

its not that they're not allowed to, its just they dont want to because they get commission for new contracts.

There is no bestbuy rule saying they cant sell phones off contract. People buy replacement phones all the time. Hell, even Bestbuy online website shows an off contract option available, granted its $50 more than apple but they will price match.

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You couldn't be more wrong. Best Buy gets zero commission, like I said in a previous post, apple products make the store no money, so attaching things like an activation, cases and whatnot realllyyyyyy help with making money. However, you have the right as a customer to pay full price if you'd like. I'd take it up with the stores GM, cause that isn't cool. Also as far as price matching goes, they can do it but they have to verify someone has it nearby first. My store sells off contract phones constantly, we have a lot of Asian tour groups come through our area that want gsm phones.

I'd take the phone back and complain BIG TIME.


I work for Best Buy Mobile.

Kemonsterr said:

You couldn't be more wrong. Best Buy gets zero commission, like I said in a previous post, apple products make the store no money, so attaching things like an activation, cases and whatnot realllyyyyyy help with making money. However, you have the right as a customer to pay full price if you'd like. I'd take it up with the stores GM, cause that isn't cool. Also as far as price matching goes, they can do it but they have to verify someone has it nearby first. My store sells off contract phones constantly, we have a lot of Asian tour groups come through our area that want gsm phones.

I'd take the phone back and complain BIG TIME.


I work for Best Buy Mobile.

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A thousand times this. I am a former BBYM employee and he is correct. If someone comes in and buys 10 iPhone's, whether full price or contract, the store gets exactly $0. That's why there is such an emphasis on accessory attachment and GSP attachment.

AppleFan91 said:

A thousand times this. I am a former BBYM employee and he is correct. If someone comes in and buys 10 iPhone's, whether full price or contract, the store gets exactly $0. That's why there is such an emphasis on accessory attachment and GSP attachment.

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She* hahah
But yes sadly apple doesn't allow any other stores to make money on their stuff. So it's different store to store if they wana sell one off contract

This confirms going off-contract is the only way to go. Why does Best Buy earn a big commission off each subsidized phone sale? Because the wireless carriers are charging you, the customer, even more money for your "subsidized" iPhone via higher rates and fees.

Unlocked, unsubsidized, off-contract = saving a ton of money.

Velin said:

This confirms going off-contract is the only way to go. Why does Best Buy earn a big commission off each subsidized phone sale? Because the wireless carriers are charging you, the customer, even more money for your "subsidized" iPhone via higher rates and fees.

Unlocked, unsubsidized, off-contract = saving a ton of money.

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If you'd have read you woulda seen that as a best buy employee nobody in the whole company makes commission. Wrong o

AppleFan91 said:

A thousand times this. I am a former BBYM employee and he is correct. If someone comes in and buys 10 iPhone's, whether full price or contract, the store gets exactly $0. That's why there is such an emphasis on accessory attachment and GSP attachment.

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I find that funny and really hard to believe.
You sell a product but somehow the store doesn't make any money?
And you know that how? You own best buy or you think the company doesn't make money by selling an iphone? Just because you don't get any commission or anything added to your check you think best buy would sell an item for nothing without having any kind of corporate agreement with Apple inc?

Kemonsterr said:

But yes sadly apple doesn't allow any other stores to make money on their stuff.

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Another laughable post. Did you even read what you posted? But I forgot you're a Best Buy employee lol
Apple doesn't allow any other stores to make money of their stuff?
And yet walmart, target, best buy and many many other retailers just sell them for fun or for nothing without making any money.

Applejuiced said:

I find that funny and really hard to believe.
You sell a product but somehow the store doesn't make any money?
And you know that how? You own best buy or you think the company doesn't make money by selling an iphone? Just because you don't get any commission or anything added to your check you think best buy would sell an item for nothing without having any kind of corporate agreement with Apple inc?

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common knowledge that the big ticket items make no profit and all the profit is in the accessories, geek squad support, etc

alent1234 said:

common knowledge that the big ticket items make no profit and all the profit is in the accessories, geek squad support, etc

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I highly doubt that.
Big ticket items and all items make money.
If they didn't then how could walmart sell the iphone 5 last year for $129 under contract when every other place including Apple was selling them for $199?
Oh yeah maybe walmart was paying the $71 out of their own pocket right since they were making no money before selling it for $199.

Kemonsterr said:

She* hahah
But yes sadly apple doesn't allow any other stores to make money on their stuff. So it's different store to store if they wana sell one off contract

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haha my bad, but yeah. We had a few different BBYM managers and one of them didn't care, one of them wouldn't allow it and then one of them said sure, but try and talk them out of it if they don't get GSP or an Accy.

BJonson said:

Went to return my 5s which I bought off contract on release day. They had a cow over the fact I bought it off contract. Said that guy (which was new) did it wrong and will get in trouble. Said they are not allowed to sell them now off contract at all. That's just BS. How can they do that? I swear buying mobile phones has gotten way out of hand with the carrier bull crap.

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What do you mean "how can they do that". Best Buy sets their own rules, they can do it if they want.

Applejuiced said:

I find that funny and really hard to believe.
You sell a product but somehow the store doesn't make any money?
And you know that how? You own best buy or you think the company doesn't make money by selling an iphone? Just because you don't get any commission or anything added to your check you think best buy would sell an item for nothing without having any kind of corporate agreement with Apple inc?



Another laughable post. Did you even read what you posted? But I forgot you're a Best Buy employee lol
Apple doesn't allow any other stores to make money of their stuff?
And yet walmart, target, best buy and many many other retailers just sell them for fun or for nothing without making any money.

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Sorry, but I think the 2 BBYM employees would know better than a random guy on the internet who THINKS he knows. When an iPhone is sold, there is literally no money that is given to the store. At the very bottom of the totem poll, which is our sales reps, they track what they sell as a way to gauge their performance in a way. When they sell an Android/WP/Blackberry, that amount is added to their Notional Margin. Now if it's an upgrade it is less than if it is a new line or activation. However, the employees don't earn a penny more in their paycheck if they sold 5 new lines or 1 upgrade. The store gets paid more and that helps the department hit its bonus, which then gets the employees a monthly bonus. Again, there is no money when an iPhone is sold. If one of the Sales reps sold an iPhone with no accessories or GSP then it was a wasted sale and they did not earn a penny of notional margin for the store. Why do you think a case that costs $4 is being sold for $34.99? it's because we dont make a penny off the iPhone, but what are you going to do? Not sell it and lose all those accessory sales to the competitors that do?
Sorry, /rant, I just don't like being called a liar or talked down too because I use to work at BBY. That was disrespectful and we clearly know what we are talking about and you are just assuming.

alent1234 said:

common knowledge that the big ticket items make no profit and all the profit is in the accessories, geek squad support, etc

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What?

Please don't mislead people. Some here will actually believe you. Best Buy makes money on everything they sell. You buy a $3000 TV and you can bet they make money. It is the American way! It is how we "used" to be the most powerful country in the world.

Applejuiced said:

I highly doubt that.
Big ticket items and all items make money.
If they didn't then how could walmart sell the iphone 5 last year for $129 under contract when every other place including Apple was selling them for $199?
Oh yeah maybe walmart was paying the $71 out of their own pocket right since they were making no money before selling it for $199.

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Being an ex Best Buy employee myself, an employee can lookup what Best Buy gets charged for the item, and compare what they sell it for.

Big ticket items such as TV's, Computers, and iPhones maybe get a dollar or two profit. Sometimes less than a dollar, only .50 cent. Same reason why employee discount's on such items is non-existant. The other two employees that posted are correct.

All the profits come from accessories and what not. Those HDMI cables that best buy sells for 60 bucks, only cost them $10. Not to mention the BBY protection plans, black tie service, or w/e it's called these days.

WSFrazier said:

Being an ex Best Buy employee myself, you can easily lookup what Best Buy gets charged for the item, vs what they sell it for.

Big ticket items such as TV's, Computers, and iPhones maybe get a dollar or two profit. Sometimes less than a dollar, only .50 cent. Same reason why employee discount's on such items is non-existant.

All the profits come from accessories and what now. Those HDMI cables that best buy sells for 60 bucks, only cost them $10.

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This is correct. This is why when an employee buys a game console, they get pennies off the price with their discount. But if they buy an HDMI cable, they get it for about $15 of the total cost a customer would pay, why? Because employee discounts at BBY are cost + 5%.

So for employees:

Xbox 360 - $299, MIGHT get it for $295, because it's cost plus 5%.

HDMI Cable - $50, probably get it for $5-$10.

EDIT: When I say Cost + 5%, I mean the cost the company paid the manufacturer plus 5% so they make a little profit.

Back in college I worked at a major discount retailer. I was pricing items one day and noticed that the company was losing $.50 on every quart of motor oil they sold. I asked my boss why this was?

He said, "It is at the back of the store and you can't carry 6 quarts of it without a cart. Other things fall into that cart."

I totally believe that BB makes zero profit on the iPhone and hopes to make it up by selling high margin accessories. They probably get kickbacks from the carriers on phone activations and contract renewals.

Ask yourself this, if Apple was making less profit on an iPhone shipped to BB and sold there than they are one sold at the Apple store and they have lines of people standing out front to buy one, why would they send them to BB at all?

WSFrazier said:

..
Big ticket items such as TV's, Computers, and iPhones maybe get a dollar or two profit. Sometimes less than a dollar, only .50 cent.
...

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BestBuy.com advertises the iPhone 5S "device only" for $50 more than everywhere else. And I would even be willing to pay that extra, but (my local store) still does not let me buy it at that price without activation. So they could be making money with the "device only" option, too. No to mention they could mark it up even more (and not price-match), but Apple might "not let them"...
Oh, well, their loss...

That $40 otter box case is sold at profit margins as high as monster cables. Add in the warranties and that's where the profit comes from. Minority of customers bring in most of the profit.

I have two family members who got taken for $2000 for tv's at best buy. $1000 or so for the tv in each case. The rest for a stand, warranty, wifi adapter for $70, surge protector, etc

Lucille Carter said:

What?

Please don't mislead people. Some here will actually believe you. Best Buy makes money on everything they sell. You buy a $3000 TV and you can bet they make money. It is the American way! It is how we "used" to be the most powerful country in the world.

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Well said.
Best buy employees see some numbers on their system and other such as commision and discount pricing and they actually think the company as a whole makes no money by selling any Apple stuff.
I'd have to disagree with that. If you're buying that I got a bridge for sale