Those misleading cellular prices

You see the commercials. $49 for the new Blackberry Tour, or $29.99 for the Motorola Rival. Verizon, Sprint, ATT all of them do it. They advertise these prices left and right with the small print almost off the picture. These prices are for renewals for 2 year contracts. These prices are only available IF you are eligible for an upgrade.

Most cellular contracts are the same. You have to have made it roughly 20 out of 24 months through the contract to be eligible for the advertised prices I mentioned. I get calls every other day from people confused about this. They are 6 months into a contract, break or lose their phone, do not carry insurance and then I quote them "$289, are you kidding me I saw it on TV for $29.99" Well that is for an "eligible" customer.

The retail price of most all of these phones is not cheap. A Blackberry for example will run well over $400 to replace at retail if you do not carry insurance or have eligibility to get an upgrade with a discount off the new phone. In the carriers defense, when they discount or subsidize the phone they are losing money and have to keep you under contract for several months to reclaim the discount and actually be profitable.

Be careful of the E-bay purchases for replacements. Carry insurance on Smart phones and create a relationship with a broker that has access to wholesaler's if and when that dreaded day comes.

Welcome to the Future.

Mike