Best Buy "Overcharging" for iPhones

W

williej81

macrumors newbie
I just wanted to give everyone a heads up who ordered or are buying an iPhone from Best Buy that they are (at least in my case) charging more than what Apple is charging for the iPhone.

They said they charged me the taxes for the unsubsidized phone at $699 instead of $649 like Apple does (saying they buy from Apple so that's why they charge $50 more).

The problem is the total tax I paid came out to $59.32 and the tax rate I pay (7.75%) added it up to show they charged me $765 for the phone (this was my wife's phone, later when I bought from the Apple store they just charged me $50.30 in taxes). I went back to Best Buy and they "price matched" what Apple's price was and so I got $10 back from the tax.

Check your receipts if you purchased from Best Buy and make sure you aren't being overcharged, not sure if this is pricing mistake or what but kind of annoying.
 
williej81 said:
I just wanted to give everyone a heads up who ordered or are buying an iPhone from Best Buy that they are (at least in my case) charging more than what Apple is charging for the iPhone.

They said they charged me the taxes for the unsubsidized phone at $699 instead of $649 like Apple does (saying they buy from Apple so that's why they charge $50 more).

The problem is the total tax I paid came out to $59.32 and the tax rate I pay (7.75%) added it up to show they charged me $765 for the phone (this was my wife's phone, later when I bought from the Apple store they just charged me $50.30 in taxes). I went back to Best Buy and they "price matched" what Apple's price was and so I got $10 back from the tax.

Check your receipts if you purchased from Best Buy and make sure you aren't being overcharged, not sure if this is pricing mistake or what but kind of annoying.
Click to expand...

...it's how it is in Cali. You get taxed the full amount of the device
 
williej81 said:
I just wanted to give everyone a heads up who ordered or are buying an iPhone from Best Buy that they are (at least in my case) charging more than what Apple is charging for the iPhone.

They said they charged me the taxes for the unsubsidized phone at $699 instead of $649 like Apple does (saying they buy from Apple so that's why they charge $50 more).

The problem is the total tax I paid came out to $59.32 and the tax rate I pay (7.75%) added it up to show they charged me $765 for the phone (this was my wife's phone, later when I bought from the Apple store they just charged me $50.30 in taxes). I went back to Best Buy and they "price matched" what Apple's price was and so I got $10 back from the tax.

Check your receipts if you purchased from Best Buy and make sure you aren't being overcharged, not sure if this is pricing mistake or what but kind of annoying.
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lol.. always been this way. Everyone is different either you pay up front or you pay one the bill. I rather pay up front less fees on the bill
 
frankdogg said:
...it's how it is in Cali. You get taxed the full amount of the device
Click to expand...

Yes, I know, I mentioned that. I got charged in taxes for the full price of the phone $649 at the Apple Store. The other phone I bought at Best Buy they charged me in taxes for the same phone at $765, which equaled a difference of $11 in taxes between the two stores. Best Buy in a way overcharged me for what the actual price of the phone was thus getting $11 additional in taxes from me. I want to see if others had this overcharge as well.
 
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frankdogg said:
...it's how it is in Cali. You get taxed the full amount of the device
Click to expand...

You don't know what you are talking about. I am in California and I bought the 16GB from a Verizon store for $649.99+8.75% tax, which came out to be $706.86.

The retail price is $649.99, well it should be $649 but Verizon added another 99 cents on it.

They overcharged you. Go get it fixed.
 
pure3d2 said:
You don't know what you are talking about. I am in California and I bought the 16GB from a Verizon store for $649.99+8.75% tax, which came out to be $706.86.

The retail price is $649.99, well it should be $649 but Verizon added another 99 cents on it.

They overcharged you. Go get it fixed.
Click to expand...

I was only referring to the taxes not how much best buy charged him before tax. My bad
 
williej81 said:
I just wanted to give everyone a heads up who ordered or are buying an iPhone from Best Buy that they are (at least in my case) charging more than what Apple is charging for the iPhone.

They said they charged me the taxes for the unsubsidized phone at $699 instead of $649 like Apple does (saying they buy from Apple so that's why they charge $50 more).

The problem is the total tax I paid came out to $59.32 and the tax rate I pay (7.75%) added it up to show they charged me $765 for the phone (this was my wife's phone, later when I bought from the Apple store they just charged me $50.30 in taxes). I went back to Best Buy and they "price matched" what Apple's price was and so I got $10 back from the tax.

Check your receipts if you purchased from Best Buy and make sure you aren't being overcharged, not sure if this is pricing mistake or what but kind of annoying.
Click to expand...

I have an even more egregious calculation of improper sales tax by Best Buy. I purchased the 64GB iPhone 5 at Best Buy. I knew that we are taxed on the unsubsidized price in California, and I also knew that Best Buy's "retail price" was $51 more than the true price ($899.99 at Best Buy vs. $849 pretty much everywhere else). I was expecting to be taxed 7.75% of $900.

When I got home, I realized they taxed me $77.57, which is tax on $1000.90. The receipt showed neither the tax rate nor the amount subject to taxation. I called customer service, and the rep was as flummoxed as I. We even both went through the checkout process on bestbuy.com for the 64GB 4S, which has the same unsubsidized price as the 5. The tax calculation came out correct at 7.75% of $899.99.

So, Best Buy taxed me on an extra $101 of their own retail price ($900) and an extra $152 of the real retail price ($849). The customer service rep sent me a $15 gift card as compensation, which I was happy with, but there are countless others who were incorrectly taxed. I hope that Best Buy is sending that extra tax to the state instead of pocketing it.

The only reason I went with Best Buy for iPhone was because I signed up for their $50 Phone Freedom promo and had amassed gift cards through AMEX promos in anticipation of the iPhone 5.
 
verdi1987 said:
I have an even more egregious calculation of improper sales tax by Best Buy. I purchased the 64GB iPhone 5 at Best Buy. I knew that we are taxed on the unsubsidized price in California, and I also knew that Best Buy's "retail price" was $51 more than the true price ($899.99 at Best Buy vs. $849 pretty much everywhere else). I was expecting to be taxed 7.75% of $900.

When I got home, I realized they taxed me $77.57, which is tax on $1000.90. The receipt showed neither the tax rate nor the amount subject to taxation. I called customer service, and the rep was as flummoxed as I. We even both went through the checkout process on bestbuy.com for the 64GB 4S, which has the same unsubsidized price as the 5. The tax calculation came out correct at 7.75% of $899.99.

So, Best Buy taxed me on an extra $101 of their own retail price ($900) and an extra $152 of the real retail price ($849). The customer service rep sent me a $15 gift card as compensation, which I was happy with, but there are countless others who were incorrectly taxed. I hope that Best Buy is sending that extra tax to the state instead of pocketing it.

The only reason I went with Best Buy for iPhone was because I signed up for their $50 Phone Freedom promo and had amassed gift cards through AMEX promos in anticipation of the iPhone 5.
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If this is true, report it to the BBB. And tweet it. And give them bad publicity. They're criminals. I've heard (not confirmed) that in-store their web portal that customers see can have higher prices than retail.
Big box retailers of that size should not charge over retail price. That's tacky and icky but hey, it's a free world and I am free not to go to Best Buy...except that they are the only game in town near me.
 
lamenramen said:
Big box retailers of that size should not charge over retail price. That's tacky and icky but hey, it's a free world and I am free not to go to Best Buy...except that they are the only game in town near me.
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BS. MSRP is just that: a "suggested" retail price. Retailers are not obligated by any law to sell a product at or below MSRP. In fact, some manufacturers like Apple enforce minimum advertised and sale prices on their licensed retailers to prevent discounting. Why aren't you complaining about that?

Best Buy did nothing wrong here. And it's not their fault that they're the "only game in town near you".
 
Doesn't Apple have its own "Apple Tax" that's a fixed rate as opposed to buying from anywhere else in your state which will include the state's tax? Probably completely off here but just a thought.
 
spazma7ik said:
Doesn't Apple have its own "Apple Tax" that's a fixed rate as opposed to buying from anywhere else in your state which will include the state's tax? Probably completely off here but just a thought.
Click to expand...

No. Only governments can impose a tax.
 
lamenramen said:
If this is true, report it to the BBB. And tweet it. And give them bad publicity. They're criminals. I've heard (not confirmed) that in-store their web portal that customers see can have higher prices than retail.
Big box retailers of that size should not charge over retail price. That's tacky and icky but hey, it's a free world and I am free not to go to Best Buy...except that they are the only game in town near me.
Click to expand...

I might. I have considered writing the state Board of Equalization. I didn't take any action because I was satisfied that they compensated me with a gift card.
 
For me in NH, I can't complain at all about Best Buy and Apple purchases. First of all, we don't have sales tax so no worries there. Then BB gives the best trade in value for old electronics. I got $317.25 for my 4S 32.
 
THEY DID THE SAME THING TO ME TOO TODAY...then they gave me bs about not price matching because its limited quantity....they other stores have to have iphone 5's in stock too for them to price match... bs best buy is lame
 
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