tag:blogger.com,1999:blog-8518538516094111151.post1144137691816014554..comments2024-02-09T04:57:18.262-05:00Comments on TeleFrieden: Such a Deal: Wireless Service Without a 2 Year CommitmentRob Friedenhttp://www.blogger.com/profile/07906014390240946093noreply@blogger.comBlogger1125tag:blogger.com,1999:blog-8518538516094111151.post-72731511334847048132008-11-19T17:01:00.000-05:002008-11-19T17:01:00.000-05:00I'm not sure I understand your criticism of this p...I'm not sure I understand your criticism of this pricing. Verizon's handset subsidy can be thought of as the same as any other volume discount. When you buy a 24-box case of detergent at Costco or Sam's Club, you often pay a lower unit price than you would for a single box, because the seller is able to generate the revenue from your purchase that would normally take 24 individual sales of a regular size box. Similarly, when you are willing to buy 24 months of $40 a month phone service all at once (by signing a two year contract), generating $960 of assured revenue to the company, the company is willing to give you a volume discount of $330 (in the form of a handset subsidy) off the $960 it would cost you if you bought only one month at a time. I'm not sure why you would expect to also receive the volume discount even if you don't make the large volume purchase.birtelcomhttps://www.blogger.com/profile/03605568568550841634noreply@blogger.com